Question 15 of 200 from exam PRINCE2-PRACTITIONER: Practitioner Project Management Certification
Question
Scenario - Additional Information - During the initiation stage the Project Manager met with the Marketing Director to find out more about the requirements of the promotional calendar and recorded the following notes: There has been a reduction in the order numbers at the MNO Manufacturing due in part to the increased marketing activities of its competitors.
10% of customers have not re-ordered in this financial year and staff morale is poor.
A number of skilled staff have left as a result and replacement staff have not been recruited due to the reduced operation.
If the project is successful, a recruitment campaign will be required to fill the existing staff vacancies and there may be a requirement for additional staff.
Operational costs are likely to increase because skilled staff are expensive and difficult to find.
In financial terms, there were a total of 1,500 orders in the last financial year, each with an average profit of 2k.
The Marketing department believes that sending a promotional calendar to our current and prospective customers would increase orders by at least 10% with a minimum of 10 further orders from the list of prospective customers within 12 months from the date of distribution.
The Marketing Director will be funding the project from the business marketing budget.
She believes that the effect of a good company image portrayed by a successful calendar would last into a second year.
She has forecast the same increase in orders for a second year and predicts that the annual employee satisfaction survey will show a measurable improvement in staff morale.
A number of alternatives were explored, including: -> 20% discount for all repeat customers - not cost-effective and very short term -> A promotional calendar as a free Christmas gift - would target current and prospective customers and the benefits would last into a second year -> A series of television and press advertisements was too expensive -> A direct mail shot to all customers - benefit would be short term -> Creation of an internet website - would not suit all customers The calendar is seen as the favored option, as long as the company's competitors do not increase their marketing activity.
Whilst the Marketing department wants a very high quality, glossy product, the project management team must be aware of the cost this will incur.
Which 2 statements should be recorded under the Expected benefits heading?
Answers
Explanations
Click on the arrows to vote for the correct answer
A. B. C. D. E.AC.
Based on the information provided, the two statements that should be recorded under the Expected benefits heading are:
A. Increase orders by at least 10% with a minimum of 10 further orders from the list of prospective customers within 12 months. C. The Marketing department believes that the benefits of a good company image, as portrayed by a successful calendar, will last into a second year and bring the same increase in orders.
Statement A highlights the expected increase in orders as a direct result of sending out the promotional calendar. The Marketing Director believes that the calendar will increase orders by at least 10%, and will also result in at least 10 further orders from the list of prospective customers within 12 months of distribution. This is an important benefit of the project, as it directly impacts the financial performance of the company.
Statement C highlights the potential long-term benefits of the calendar in terms of improving the company's image and generating future orders. The Marketing Director believes that the positive impact of a successful calendar will last into a second year, and will bring the same increase in orders. This is an important consideration, as it suggests that the benefits of the project will extend beyond the immediate term.
It is worth noting that the other statements listed are not appropriate for the Expected benefits heading. Statement B simply describes the calendar as being similar to previous years, which is not a benefit in itself. Statement D suggests a potential feature of the calendar, but does not describe a benefit that will result from this feature. Statement E highlights a preference of the Marketing department, but does not describe a benefit that will result from a high-quality, glossy product.
