Business
Pricing, promotion and distribution
- 1.
Fictional case: a new streaming service sets a low introductory price to attract subscribers. Explain penetration pricing and one risk.
[2 marks] · no calculator - 2.
Fictional case: a desk costs 80 to make. The seller adds a 25% mark-up on cost. Calculate the selling price and gross profit margin as a percentage of sales, assuming no other cost of sales.
[3 marks] - 3.
Fictional campaign: 20000 advertisement clicks cost 4000. Of those clicks, 600 lead to paid orders. Calculate conversion rate and advertising cost per order; explain why neither alone proves profit.
[4 marks] - 4.
Fictional case: a premium cosmetics producer switches from selected stores to a mass discount marketplace. Analyse effects on reach and brand positioning.
[4 marks] · no calculator - 5.
Fictional case: a niche publisher can sell directly online or through bookstores. Evaluate abandoning bookstores entirely.
[4 marks] · no calculator - 6.
Fictional case: a supermarket uses personalised discounts derived from purchase histories. Evaluate this compared with the same discount for every customer.
[4 marks] · no calculator
Marking points are indicative, not an official mark scheme. Accept equivalent valid methods and supported interpretations that address the task; award each mark once without requiring the model wording.