Unit of competency details

Unit descriptor 

This unit describes the performance outcomes, skills and knowledge required to plan direct marketing activities that match organisational objectives.

No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.

Application of the unit 

This unit applies to individuals in a marketing management role who are responsible for planning direct marketing activities, including formulating direct marketing plans. They may work in small, medium or large enterprises across a variety of industries.

People in this role develop the direct marketing plans and would usually supervise a team who would have the task of implementing the plans.

Prerequisite units 

Employability skills 

This unit contains employability skills.

Elements describe the essential outcomes of a unit of competency.

Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide.

ELEMENT 

PERFORMANCE CRITERIA 

1. Develop direct marketing strategies

1.1. Develop customer acquisition strategies which include objectives related to numbers of new customers, cost of recruiting, media options and promotional activities within an overall budget

1.2. Develop customer retention strategies that relate to customer needs and wants, customer buying patterns, opportunities for up-selling or cross-selling, and customer renewals and reactivations

1.3. Develop customer loyalty strategies that address relationship marketing objectives and contribute to long-term partnerships

2. Select direct marketing activity

2.1. Analyse changes in market trends to identify and select direct marketing opportunities

2.2. Compare advantages and disadvantages of types of direct marketing activity 

2.3. Select most appropriate direct marketing activity

2.4. Match direct marketing activity to business objectives

3. Produce a direct marketing plan

3.1. Document direct marketing objectives  and purpose

3.2. Analyse previous response data to determine performance gaps  and required corrective actions 

3.3. Calculate costs  of direct marketing activities

3.4. Select methods to report and measure effectiveness  of direct marketing activities

3.5. Assign responsibilities to team members for data capturing and reporting

REQUIRED SKILLS AND KNOWLEDGE 

This section describes the skills and knowledge required for this unit.

Required skills 

• creativity and innovation skills to identify new direct marketing opportunities based on changing market trends
• culturally appropriate communication skills to relate to people from diverse backgrounds and people with diverse abilities
• literacy skills to write reports with complex concepts and ideas
• numeracy skills to set direct marketing budgets.

Required knowledge 

• economic, social, industry, and media directions, trends, practices and techniques
• key provisions of relevant legislation from all forms of government, codes of practice and national standards that may affect aspects of business operations such as:

• Australian Direct Marketing Association (ADMA) Direct Marketing Code of Practice and 'Do Not Mail' and 'Do Not Call' service register
• Free TV Australia Commercial Television Industry Code of Practice
• privacylaws
• sweepstakes regulations
• Trade Practices Act

• organisational policies and procedures.

EVIDENCE GUIDE 

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment 

Critical aspects for assessment and evidence required to demonstrate competency in this unit 

Evidence of the following is essential:

• developing a documented direct marketing plan providing information on the:

• objectives of the direct marketing activity
• type of direct marketing strategies and activities to be undertaken
• analysis of previous data and any corrective actions taken
• budget

• methods to measure effectiveness.

Context of and specific resources for assessment 

Assessment must ensure:

• access to office equipment and resources
• access to previous direct marketing activity data.

Method of assessment 

A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:

• analysis of responses to case studies and scenarios
• assessment of written reports
• demonstration of direct marketing planning techniques
• direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate
• observation of presentations
• oral or written questioning
• review of authenticated documents from the workplace or training environment
• review of testimony from team members, colleagues, supervisors or managers.

Guidance information for assessment 

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

• other marketing units
• advertising units
• sales units.

RANGE STATEMENT 

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Types of direct marketing activity  may include:

• advertising program such as:

• collecting data from advertisers to send a prospect to a third party
• prospect responding to advertiser
• purchasing a product or service from a third party

• distribution program such as:

• direct purchase of product or service from advertiser

• innovation program

Direct marketing objectives  may include:

• net growth of customer base through:

• increase in acquisition
• reduced attrition

• increased relationship building
• target sales in units and dollars

Performance gaps  may include:

• low response rate
• cost per response too high
• average order too low

Corrective actions  may include:

• dropping under-performing segments
• increasing frequency of contact to existing lists or audiences
• offering inducements to purchase greater volume
• testing or using more attractive offers
• testing or using new lists or audiences
• using less expensive communications tactics

Costs  may include:

• maximum profitable acquisition cost at current lifetime value of new customers
• maximum profitable cost to generate average sale from existing customer segments

Methods to measure and report effectiveness  may include:

• annual attrition rate
• gross profit per message transmitted
• net response rates
• ration of marketing cost to sales income

Unit sector 

Competency field 

Business Development - Marketing

Co-requisite units