DDIG past paper pack 2013 - Updated

IDM Diploma in Digital Marketing (Dip DigM), Paper I
Past paper pack

June 2012
December 2012
June 2013
The IDM Diploma in

Digital Marketing (Dip DigM)
© 2013 The Institute of Direct and Digital Marketing. All rights reserved
IDM is a registered trademark. Registered charity no. 1001865 Page 1 of 27
The IDM Diploma in

Examination Paper I
18th June 2012
14.00-17.00 hours
This paper contains FIVE questions and you have three hours to answer THREE questions
All answers carry equal marks. Total marks available for the paper is 100.
You may use a calculator
Question One
“The most important digital-related challenge for marketers and business leaders is
generating and leveraging deep customer insights.” (McKinsey Quarterly Study, ‘What
marketers say about working online’).
Why is customer insight so important for digital marketers? Please illustrate your answer
with B2C and B2B examples.
Question Two
Econsultancy’s Marketing Budgets Report indicates that digital marketing continues to be a

priority for the majority of companies, with around two-thirds (68%) of respondents
reporting increases for their digital budgets over the next 12 months. Three-quarters (75%)
of agencies indicated their clients are planning to increase their digital marketing budgets in
2012.
In contrast only 16% of companies plan to increase their traditional offline budget.
Why at a time when marketing budgets in general are not increasing are companies
choosing to increase their digital marketing spending? What metrics need to be in place
to ensure that this increased digital spend is delivering an improved return on marketing
investment?
Question Three
“While we are a coffee company at heart, Starbucks provide much more than the best cup
of coffee – we offer a community gathering place where people come together to connect
and discover new things”. Howard Schultz, CEO Starbucks.
How should Starbucks harness social media to add value to its brand? What do Starbucks
need to consider in relation to brand reputation management in the context of social
media?
Question Four
The internet gives consumers the opportunity to compare prices of products and services.
In the financial services and insurance sectors there is a proliferation of price comparison
websites such as comparethemarket.com, moneysupermarket.com and confused.com.
What advice would you give to a car insurance business when developing its eCRM
strategy and plans to improve customer loyalty? How can eCRM strategy change
customers’ perceptions that they should simply select the cheapest quote on a price
comparison website?
Question Five
Consumers have become used to providing companies with their personal data but after
several high profile data losses and cases of information misuse their confidence is being
eroded. The main principles underpinning data protection are therefore becoming more
important.
Explain the key steps a marketer should take to ensure best practice to protect personal
data, no matter what legal and regulatory system they are operating under. How can we
as marketers rebuild consumer confidence?
The IDM Diploma in

Examination Paper II
19th June 2012
14.00-17.00 hours
This paper contains FIVE questions and you have three hours to answer THREE questions
All answers carry equal marks. Total marks available for the paper is 100.
Question One
What are the key organisational challenges faced when implementing a new digital
marketing strategy? Use the 7S’s model to frame your answer with reference to a
company with which you are familiar.
Question Two
McKinsey reports that many marketers continue to struggle with developing the right
metrics. Nearly one-third of respondents to a recent study say existing digital metrics don’t
quantify the financial impact of those tools or channels on the business. This challenges one
of the key perceived benefits of digital marketing.
In your view, is digital marketing truly measurable and what are the key metrics that
should be put in place?
Question Three
How can companies engage more with consumers who ‘like’ their brand on Facebook or
'follow' them on Twitter, to help move them up the loyalty ladder towards becoming
customers and then advocates? How should they integrate Facebook and Twitter with
other digital channels to facilitate and encourage them on this journey?
Please choose one of the following market sectors to help illustrate your answer:
• Retail
• Travel
• Automotive
• Domestic appliances
• Financial services
Question Four
The upmarket catalogue clothing retailer Boden has recently launched an iPad ‘app’ for
their catalogue. Past website users have reported that the app does not appreciate the
way they engage with Boden’s traditional paper catalogue and website so they are skipping
the app on their iPad and going straight to the website to order.
What should online retail companies consider when reviewing the suitability of new
digital channels for their brand and what specifically should they consider when launching
an app?
Question Five
St. Baldrick’s is a US charity raising funds for research into childhood cancer. Its main
fundraising is through events where adults collect sponsorship to shave their heads
showing solidarity with children receiving treatment for cancer. Group head-shaving events
are organised by participating companies around St. Patrick’s Day in March each year.
Whilst the charity is based in the US, increasingly UK companies are joining in the activities.
St. Baldrick’s wants to build on its success in the UK, and sign up 50 large UK companies for
the 2013 event. It is keen to use digital communications for this activity to integrate with
the charity’s already strong online presence. The website is effective in its ability to tell the
story of St. Baldrick’s research grants, to collect online donations and to build a sense of
competition within teams and between contributing businesses.
Write a digital marketing plan to help St. Baldrick’s sign up 50 new large companies in the
UK to organise their own head shaving event in March 2013. You have a budget of
£100,000.
The IDM Diploma in

Examination Paper III
20th June 2012
14.00-17.00 hours
You have 3 hours to complete the task described
Take time to read the task through thoroughly before you start writing your answer
The Postgraduate Teacher Training Board (PTTB)
The Postgraduate Teacher Training Board (PTTB) is the UK government body tasked with
recruiting and developing teachers for schools in England and Wales.
With so many careers on offer to those graduating from university, the PTTB’s first role is to
make sure that a career as a teacher is part of their career ‘consideration set’. The PTTB is
looking to recruit quality teachers who are currently ‘high-fliers’ with the academic ability
and necessary ‘soft skills’ (e.g. communication skills) to meet the challenge of becoming an
excellent teacher. In particular, it is looking to recruit more Maths and Science graduates as
there is currently a teacher shortage in these subject areas.
In 2013, it needs to generate 55,000 applications for postgraduate teacher training courses.
The target audience for PTTB is university students in their penultimate or final year.
Applicants must have at least a 2:2 grade university degree to be eligible.
The whole process takes approximately two years and goes through the following stages:
Consider Visit website ‘Enquire’ to Apply Interviewed Start Qualify to

teaching get more to train by training training start
as a career info provider teaching
The PTTB website is a rich source of information about the benefits of becoming a teacher.
95% of applicants from last year said they had used the website and found it helpful, so it is
crucial for PTTB to drive traffic to this website. The current conversion rate from enquiry to
application is 25%.
PTTB runs a general above the line campaign (press, outdoor, TV) as well as events.
Specifically for students, it has produced some outdoor advertising around university
campuses and has an online presence on student websites.
Your task:
You are the marketing specialist employed by PTTB to create a 12-month digital
marketing strategy and plans to generate 15,000 applications for postgraduate teacher
training courses.
Your digital marketing budget is £900,000 (excluding above the line advertising and
events).
The IDM Diploma in

Examination Paper I
3rd December 2012
14.00-17.00 hours
This paper contains FIVE questions and you have THREE hours to answer THREE questions
All questions carry equal marks. Total marks available for the paper is 100.
Question One
According to IMRG (Interactive Media in Retail Group), sales via mobile phones increased
356% between June 2011 and June 2012.
Could a mobile strategy for ticketing have helped the sales process of Olympic Games
tickets for the London 2012 Olympics? How would you have advised them to integrate
mobile sales into their overall digital communications strategy?
(33 marks)
Question Two
Weblog, click data and mobile touchpoint data are currently classified as non-personal data,
as personal information such as name and address are removed when the data is used.
They have therefore not been subject to data protection laws.
How are companies using this non-personal data to target prospects, and why should
they be asking their permission to do so? How can companies increase permissions from
prospects for their digital marketing?
(33 marks)
Question Three
You are the marketing manager for a charity. The charity has started to increase the
amount of digital marketing communications to their donors to the point where they now
have a full digital strategy. The recently employed financial director has asked you to
summarise the differences between offline and digital marketing budgeting and evaluation,
he is challenging the perception that digital marketing is more accountable.
Prepare a report for him that outlines the key differences between offline and digital
marketing budgeting and evaluation and reassure him of the accountability of digital
marketing.
(33 marks)
Question Four
“Advertising on Google is like advertising in a store. Advertising on Facebook is like

advertising at a party”.
Henry Blodget, Business Insider
A recent IAB report has identified that online advertising now accounts for 28% of the UK’s
adspend. It is clear many executives are choosing online advertising as a good promotional
platform for their brand.
Provide a report detailing the benefits of online advertising and factors that should be
considered when deciding which channels to use. Choose a brand you are familiar with to
illustrate your answer.
(33 marks)
Question Five
Referring to a market with which you are familiar, describe how market intelligence and
customer insight analyses should be applied as part of strategy development for digital
marketing?
(33 marks)
The IDM Diploma in

4th December 2012
14.00-17.00 hours
Question One
According to a fast.map survey conducted in 2012, marketers are still overestimating the
popularity of using digital channels – whilst 3 in 10 consumers are happy to receive
marketing information by mail and email, fewer than 1 in 50 welcome contacts via the
newer digital media such as social and mobile.
Why do you think this is, and how should marketers engage with consumers to interact
through the newer channels?
(33 marks)
Question Two
Almost three quarters of respondents to an Econsultancy and Outbrain survey about

content marketing found digital marketers agreeing that brands are becoming publishers.
Why do brands need a content marketing strategy when planning their digital marketing
communications? How can the value of content marketing be optimised?
(33 marks)
Question Three
For the first time in November 2012, the electorate in England and Wales (excluding
London) elected a Police and Crime Commissioner for their regional police force. An offline
media campaign with TV, radio, door drops, national and local press was used in order to
raise awareness of these elections. Two websites were developed giving the public
information about the role of police commissioners and about their local candidates. Social
media was used on a small scale as part of the local campaign. Voting turnout was low with
only 14.6% of the electorate voting in their region.
Outline what your social media strategy would have been for the elections to better
engage the public with the whole process and increase voter turnout. How can this be
measured to ensure effective marketing investment?
(33 marks)
Question Four
The increasing number of opportunities for consumers to interact with businesses has
made tracking the path to purchase very complex.
Explain the importance of measurement in digital marketing communications and

describe the key metrics used to evaluate the effectiveness of individual communications
as well as integrated campaigns. What techniques can be used to assist in measuring this
complex journey?
(33 marks)
Question Five
Amazon’s LOVEFiLM brand provides instant online access to films and games (with postal
access for those who prefer it). Subscription is by a pay-as-you-go monthly fee and there
are no late return fees or lengthy contracts.
For a brand such as LOVEFiLM, what are the key considerations for marketing
communications when developing and reinforcing their online value proposition? State
any assumptions you are making.
(33 marks)
The IDM Diploma in

5th December 2012
14.00-17.00 hours
You have THREE hours to complete the task described
Splash
Splash is a large waterpark in the Algarve, a popular tourist destination in Southern

Portugal. It opens during the busiest months of the holiday season from April until the end
of September and so it is vital that the business maximises visitor numbers during this
period.
The park covers seven acres, making it one of the largest in Europe with capacity for 3,000
visitors per day. It has a variety of slides and water rides suitable for children and adults as
well as two outdoor swimming pools and a wet play area for young children. There are
three cafes which serve hot and cold snacks, several kiosks for cold drinks and ice cream
and a souvenir store. It is open from 10am until 6pm, seven days a week.
In addition to the stunning coastline there are two other smaller waterparks in the region
and many other tourist attractions that are competing in the same market.
Admission to the park equates to £20 for adults, £12.50 for children (under 4's are admitted
free). Tickets may be purchased on the gate or from a variety of hotels, tourism outlets and
supermarkets. Online sales for 2012 accounted for 15% of ticket sales revenue.
The 2012 season saw 391,650 visitors to the park, generating £6,070,575 in entrance fees.
Visitors are a mix of tourists and locals. The largest nationality groups by far are the British
followed by Portuguese from other regions, German and Spanish holidaymakers. The park
attracts primarily families with children between the ages of five and sixteen. 60% of ticket
sales are for children and 40% adults. It is likely that tourists visit the park only once during
their stay on the Algarve but may return another year whilst on holiday (but there is no
data to support this).
Data is held on 2011 and 2012 online bookings with 34,500 records, but no data is held on
those that pay at the gate or buy tickets at local outlets. The marketing team needs to
investigate ways of collecting more data about customers that visit the park for future
communications to encourage repeat visits.
The park is advertised on billboards around the Algarve region in an effort to drive footfall
to the park and traffic to the website. Leaflets are placed at ticket outlets, in hotels, golf
resorts and other tourist attractions located in the area. Advertising is also placed in tourist
guides that are distributed in the main tourist areas. This marketing activity has already
been booked for the 2013 season.
The website is fully transactional and makes good use of interactive maps of the park and
its rides giving consumers a good feel for what a day out at the park will be like. Apart from
the website and video content posted on YouTube, there has been very little other digital
marketing activity. It is recognised that if the waterpark wants to target prospects and
customers domestically and internationally, digital marketing may be more effective and
efficient than offline marketing.
The business would also like to encourage prospective visitors to pre-book tickets online as
this encourages them to commit their plans to come to the park in advance.
Visitor Visitors Adult Adult Child Child Total

Capacity Month £ Visitors £ Visitors sales £
April 90,000 45,000 360,000 18,000 337,500 27,000 697,500
May 93,000 60,450 483,600 24,180 453,375 36,270 936,975
June 93,000 63,000 504,000 25,200 472,500 37,800 976,500
July 93,000 74,400 595,200 29,760 558,000 44,640 1,153,200
August 93,000 83,700 669,600 33,480 627,750 50,220 1,297,350
September 90,000 65,100 520,800 26,040 488,250 39,060 1,009,050
Total 552,000 391,650 £3,133,200 156,660 £2,937,375 234,990 £6,070,575
Targets
5% increase 19,583 £156,660 7,833 £146,869 11,750 £303,529
2013 sales 411,233 £3,289,860 164,493 £3,084,244 246,740 £6,374,104
Your task:
You have been recruited as a digital marketing consultant to develop a digital marketing
strategy to integrate with the scheduled offline activity to enable Splash to increase ticket
sales by 5% for the season starting in April 2013.
The plan should include recommendations for a retention strategy to be implemented in

April 2014 to encourage 2013 customers to return the following year.
Your plan should include:
• a detailed budget for your activity explaining how the increase in sales will be
achieved
• recommendations on a data strategy to support 2013 and 2014 digital marketing
activity
• a timed communications’ plan for your digital marketing activity.
Your budget for the activity to increase sales by 5% is £250,000. This does not have to
include the scheduled offline spend.
IDM Diploma in Digital Marketing

(Dip DigM)
Examination Paper I
17 June 2013
14:00-17:00 hours
Question One
Explain how ‘segmentation’ should be harnessed to support planning and implementation in

digital acquisition and retention strategies.
(33 marks)
Question Two
You are the new digital marketing director of the third most successful mobile network brand in
Europe. Your brand currently holds 20% of the market in terms of customer volume but your
brand’s profit per customer is 5% lower than the two market leading brands. The previous
marketing director sacrificed profit in order to build share; persuading competitor’s customers to
switch brands using price-based deals and ensuring pricing of core services, such as texts, calls and
data, is always competitive. One of the main problems the brand faces is all leading brands in the
mobile marketplace have adopted this approach, leading to customers who are disloyal and
educated to expect price-based incentives to switch.
The mobile network brand holds only basic customer contact, billing and mobile usage data but the
data is of good quality. The database is relational, with capacity to incorporate new data fields, and
an experienced data analyst has just been hired to support you in your task.
The Board feels it’s time to prioritise profit over volume growth and wants you to create a digital
strategy for 2013/14 to increase profit by at least 5%.
Write a high-level digital marketing strategy describing how you will achieve a 5% increase in profit per
customer.
(33 marks)
Question Three
Explore the ways in which FMCG brands are exploiting digital marketing channels to develop
relationships with their customers.
Include a range of digital media in your answer and examples of FMCG digital marketing
campaigns.
(33 marks)
Question Four
“IMC is more about business strategy than marketing strategy.”
Explore the inter-relationship between business and marketing strategy in delivering IMC and
explain the reasons you agree or disagree with this statement.
Your answer should consider issues in B2C and B2B IMC strategy delivery across a range of
business types, from small local businesses to global companies with multiple brands.
(33 marks)
Question Five
Discuss how digital channels and technology have developed and are continuing to change
consumer behaviour and how brands are responding to these new challenges and opportunities.
Illustrate your answer with case examples.
(33 marks)

(Dip DigM)
18 June 2013
14:00-17:00 hours
Question One
The Guardian recently reported on a big data product built by defence contracting giant Raytheon. The
product, RIOT (Rapid Information Overlay Technology), takes publicly available online data and structures it in
a way that makes it easier to discover details of a person's activities - to the extent that their movements could
be predicted. While the details of the product release do not allow a decisive answer, such a technology could
in principle violate the public’s privacy rights.
Explain why data, and in particular ‘big data’, is increasingly important to digital marketers. Which
legislation and what other issues do digital marketers need to consider and respect in their pursuit
of ‘big data’.
(33 marks)
Question Two
Yahoo’s report on advertising trends named 2013 ‘The Year of Content’. The report stated 52% of
marketers as saying targeting and personalising content is fundamental to their digital marketing
strategy.
Describe the main challenges and issues for a B2B brand in identifying, developing and targeting
content across different digital channels and media as part of a new and existing customer
engagement strategy.
(33 marks)
Question Three
At the heart of the fast-changing digital ecosystem of mobile, internet and information is
technology. 10 years ago not many marketers could have predicted the ubiquity of tablet devices
and smartphones we see today.
Discuss the roles of different technology platforms in delivering an effective digital marketing
strategy and the main challenges facing digital marketers who want to optimise their usage.
(33 marks)
Question Four
A well-established UK charity is disappointed its new donor acquisition strategy is struggling to

achieve the same results year-on-year. Growing the donor base is of vital importance to the charity -
both to ensure regular income and to maintain its political influence when lobbying the Government
for change.
With increasingly tough competition and a poor economic climate, maintaining the level of new
donor recruitment is going to be a challenge. You have been asked to come up with ideas to
improve on current performance, without reducing income or increasing the acquisition budget.
Write a strategy document, describing the approaches you would use to improve new donor
recruitment. Make specific recommendations on how you would go about improving the
performance of the charity’s website and other digital media.
(33 marks)
Question Five
Explain the importance of the concept of customer lifetime value in digital marketing budgeting
and strategy. Describe the components and different approaches of LTV calculation and create a
five-year historical LTV based on the following data;
• The Year 1 segment comprises 1500 customers

• The number of customers buying in each successive year falls by 5% per annum
• Total sales per customer in Year 1 is £500 and this rises by 15% per year thereafter
• Gross profit is 25%
• The discount rate is 6% per annum
(33 marks)

(Dip DigM)
19 June 2013
14:00-17:00 hours
You have THREE hours to complete the task described
Science for Fun (SFF), is a small publishing company that has developed a range of
books, games, ‘scientific’ activities (e.g. ‘Make your own rocket’ kits) and IT projects
(e.g. design a computer game) marketed via a printed mail order catalogue. The range
is aimed primarily at 12 to 18 year olds but with scope for extension towards students
and ‘never grown ups’!
The product was tested in spring 2012 and using the results from the test the full launch was undertaken in
September 2012 in time for Christmas. Its investors are encouraged by progress to date but are expecting the
set-up costs be paid off by December 2013. The main set-up costs were as follows:
Set-up costs £’s

Recruitment, consultancy, product sourcing, travel, etc. £200,000
Catalogue design & development of 64 page A5 catalogue - photography, copywriting, £ 45,000*
production, print, fulfilment and postage
NB* The range is not seasonal, and the majority of the catalogue can be used unchanged for
the 2013 campaign.
RESULTS TO DATE
Test results spring 2012

Overall, the spring test campaign cost £79,075 and generated sales of £215,020, delivering a net margin of
£77,407. So, whilst they had not paid off any set up costs, they had gathered useful test data enabling a more
productive campaign in autumn 2012. Analysis by media shows the following cost per order (CPO) and
average order value (AOV):
Spring 2012 Analysis by Medium CPO £’s AOV £’s
Catalogues to rented lists 23 56

Loose inserts 16 57
Press ads 20 55
Autumn 2012 campaign
Banner ads 18 53
This campaign cost £207,000
and generated PPC 16 55 sales of £890,400
delivering a net margin of £320,544. Analysis to evaluate the delivery by media is shown below:
Autumn 2012 Analysis by Medium CPO £’s AOV £’s

Catalogues to rented lists 17 71
Loose inserts 11 68
Press ads 16 60
Banner ads 18 60
PPC 17 60
Full year Results

P&L after spring 2012 campaign -£246,668
Autumn expenditure £207,000
Autumn margin from sales £320,544
Full year balance (Loss) -£133,124
So, at full year ending December 2012 the situation looked considerably better but SFF is still carrying a loss
based upon the initial set up costs.
The campaigns so far have been targeted at families but there is obvious scope for widening this focus. In
addition, it has a database of 23,000 names that could be addressed through some form of developmental
activity. The database is made up of 13,000 existing customers with email and postal address details, and a
further 10,000 catalogue enquirers who did not convert to sales and on whom it holds only postal addresses.
The spring 2012 test results, whilst informative, were not sufficiently good to encourage SFF to run a major
spring campaign so it is concentrating resources into a single campaign in autumn 2013.
SFF is keen to develop and launch a transactional website and to test the effects of using and integrating an
ecommerce strategy. Recent research studies have underlined the importance of still having printed
catalogues, with many people of all ages stating that they prefer to have a printed catalogue even though they
may order online.
Your task:
You are the newly appointed digital marketing director of Science for Fun (SFF).
Create a digital marketing strategy to launch and generate sales through the transactional website in autumn
2013 with a budget of £150,000*. The objective is to help bring SFF into overall profit, eliminating the loss of
£133,124 carried forward from 2012 and creating an overall trading surplus to support new product
development and further expansion in 2014.
*Catalogue design and production and website development costs are covered in a separate central budget
and should not be included in your strategy and budget.
The strategy should include a plan and budget across offline and online channels, including testing of social
media. Given you are new in your role, the Board has specifically requested that you are able to demonstrate
the cost effectiveness of your recommendations.

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IDM Diploma in Digital Marketing (Dip DigM), Paper I

Past paper pack

The IDM Diploma in

The IDM Diploma in

18th June 2012

You may use a calculator

Econsultancy’s Marketing Budgets Report indicates that digital marketing continues to be a

The IDM Diploma in

19th June 2012

You may use a calculator

The IDM Diploma in

Examination Paper III

20th June 2012

You have 3 hours to complete the task described

You may use a calculator

The Postgraduate Teacher Training Board (PTTB)

Consider Visit website ‘Enquire’ to Apply Interviewed Start Qualify to

The IDM Diploma in

3rd December 2012

You may use a calculator

“Advertising on Google is like advertising in a store. Advertising on Facebook is like

Henry Blodget, Business Insider

The IDM Diploma in

4th December 2012

You may use a calculator

Almost three quarters of respondents to an Econsultancy and Outbrain survey about

Explain the importance of measurement in digital marketing communications and

The IDM Diploma in

Examination Paper III

5th December 2012

You have THREE hours to complete the task described

You may use a calculator

Splash is a large waterpark in the Algarve, a popular tourist destination in Southern

Visitor Visitors Adult Adult Child Child Total

The plan should include recommendations for a retention strategy to be implemented in

Your plan should include:

IDM Diploma in Digital Marketing

You may use a calculator

Explain how ‘segmentation’ should be harnessed to support planning and implementation in

“IMC is more about business strategy than marketing strategy.”

Illustrate your answer with case examples.

IDM Diploma in Digital Marketing

You may use a calculator

A well-established UK charity is disappointed its new donor acquisition strategy is struggling to

• The Year 1 segment comprises 1500 customers

IDM Diploma in Digital Marketing

Examination Paper III

You have THREE hours to complete the task described

You may use a calculator

Set-up costs £’s

Test results spring 2012

Spring 2012 Analysis by Medium CPO £’s AOV £’s

Catalogues to rented lists 23 56

Autumn 2012 Analysis by Medium CPO £’s AOV £’s

Full year Results

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