Business Management SL
Marketing — Unit 5
- 1.
A company wants to find out how satisfied existing customers are with a recently redesigned product before deciding whether to launch it in new markets. (a) Identify whether primary or secondary research would better answer this specific question, and justify your choice. (b) Suggest one appropriate primary research method for this purpose. (c) State one limitation of that method.
[4 marks] · no calculator - 2.
Marking analysis: A learner attempts the following task: “A company wants to find out how satisfied existing customers are with a recently redesigned product before deciding whether to launch it in new markets. (a) Identify whether primary or secondary research would better answer this specific question, and justify your choice. (b) Suggest one appropriate primary research method for this purpose. (c) State one limitation of that method.” Their response addresses only this point: “Identifies primary research as more appropriate.” Evaluate the response against the complete 4-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[4 marks] · no calculator - 3.
A café chain is launching a premium, ethically sourced coffee line aimed at environmentally conscious customers. (a) Suggest one appropriate pricing strategy for this launch, and justify your choice. (b) Suggest one appropriate promotional method that would specifically reach environmentally conscious customers.
[4 marks] · no calculator - 4.
Marking analysis: A learner attempts the following task: “A café chain is launching a premium, ethically sourced coffee line aimed at environmentally conscious customers. (a) Suggest one appropriate pricing strategy for this launch, and justify your choice. (b) Suggest one appropriate promotional method that would specifically reach environmentally conscious customers.” Their response addresses only this point: “Suggests a valid pricing strategy, such as premium pricing.” Evaluate the response against the complete 4-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[4 marks] · no calculator - 5.
A once-popular handheld gaming device is now seeing rapidly declining sales as customers switch to newer alternatives. (a) Identify the stage of the product life cycle this device is in. (b) Suggest one extension strategy the manufacturer could use to slow the decline in sales, and briefly link it to how it could realistically achieve this.
[3 marks] · no calculator - 6.
Marking analysis: A learner attempts the following task: “A once-popular handheld gaming device is now seeing rapidly declining sales as customers switch to newer alternatives. (a) Identify the stage of the product life cycle this device is in. (b) Suggest one extension strategy the manufacturer could use to slow the decline in sales, and briefly link it to how it could realistically achieve this.” Their response addresses only this point: “Identifies the decline stage of the product life cycle.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[3 marks] · no calculator - 7.
A cosmetics company markets one range of products specifically to teenagers and a different range specifically to customers over 50, using different packaging, messaging and price points for each. (a) Identify the type of market segmentation being used. (b) Explain one benefit to the company of segmenting its market this way, rather than marketing one single range to everyone.
[3 marks] · no calculator - 8.
Marking analysis: A learner attempts the following task: “A cosmetics company markets one range of products specifically to teenagers and a different range specifically to customers over 50, using different packaging, messaging and price points for each. (a) Identify the type of market segmentation being used. (b) Explain one benefit to the company of segmenting its market this way, rather than marketing one single range to everyone.” Their response addresses only this point: “Identifies demographic segmentation, specifically by age.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[3 marks] · no calculator - 9.
A small, family-run workshop makes handcrafted violins for professional musicians, selling only a few dozen instruments per year at a high price. (a) Identify whether this business is more likely to use niche marketing or mass marketing. (b) Explain one reason this approach is more suitable for this business than the alternative.
[3 marks] · no calculator - 10.
Marking analysis: A learner attempts the following task: “A small, family-run workshop makes handcrafted violins for professional musicians, selling only a few dozen instruments per year at a high price. (a) Identify whether this business is more likely to use niche marketing or mass marketing. (b) Explain one reason this approach is more suitable for this business than the alternative.” Their response addresses only this point: “Identifies niche marketing.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[3 marks] · no calculator - 11.
A company wants to survey customers about a new product idea. (a) Distinguish between random sampling and quota sampling. (b) The company specifically wants its sample to include the same proportion of men and women as in the overall customer base. Suggest which of the two sampling methods would better achieve this, and justify your choice.
[4 marks] · no calculator - 12.
Marking analysis: A learner attempts the following task: “A company wants to survey customers about a new product idea. (a) Distinguish between random sampling and quota sampling. (b) The company specifically wants its sample to include the same proportion of men and women as in the overall customer base. Suggest which of the two sampling methods would better achieve this, and justify your choice.” Their response addresses only this point: “States that random sampling gives every member of the population an equal chance of being selected, with no control over the characteristics of who ends up in the sample.” Evaluate the response against the complete 4-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[4 marks] · no calculator - 13.
A company runs a large-scale online survey asking 2,000 customers to rate a new product feature from 1 to 5, and separately holds a small focus group discussing customers' feelings about the same feature in depth. (a) Identify which of these two research methods is quantitative and which is qualitative. (b) State one advantage of the qualitative method over the quantitative method, and one advantage of the quantitative method over the qualitative method.
[4 marks] · no calculator - 14.
Marking analysis: A learner attempts the following task: “A company runs a large-scale online survey asking 2,000 customers to rate a new product feature from 1 to 5, and separately holds a small focus group discussing customers' feelings about the same feature in depth. (a) Identify which of these two research methods is quantitative and which is qualitative. (b) State one advantage of the qualitative method over the quantitative method, and one advantage of the quantitative method over the qualitative method.” Their response addresses only this point: “Identifies the large-scale rating survey as quantitative research.” Evaluate the response against the complete 4-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[4 marks] · no calculator - 15.
A technology company is about to launch a genuinely innovative new product with no direct competitors, while a separate company is about to launch a new brand of laundry detergent into an already crowded, competitive market. (a) Identify a suitable pricing strategy for the technology company's launch, and justify your choice. (b) Identify a suitable pricing strategy for the laundry detergent launch, and justify your choice.
[4 marks] · no calculator - 16.
Marking analysis: A learner attempts the following task: “A technology company is about to launch a genuinely innovative new product with no direct competitors, while a separate company is about to launch a new brand of laundry detergent into an already crowded, competitive market. (a) Identify a suitable pricing strategy for the technology company's launch, and justify your choice. (b) Identify a suitable pricing strategy for the laundry detergent launch, and justify your choice.” Their response addresses only this point: “Identifies price skimming for the technology launch.” Evaluate the response against the complete 4-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[4 marks] · no calculator - 17.
A retailer prices a product at $9.99 rather than rounding it to $10.00. (a) Identify the pricing tactic being used. (b) Explain why this tactic can influence customers to perceive the product as meaningfully cheaper than an equivalent product priced at $10.00, even though the actual price difference is only one cent.
[3 marks] · no calculator - 18.
Marking analysis: A learner attempts the following task: “A retailer prices a product at $9.99 rather than rounding it to $10.00. (a) Identify the pricing tactic being used. (b) Explain why this tactic can influence customers to perceive the product as meaningfully cheaper than an equivalent product priced at $10.00, even though the actual price difference is only one cent.” Their response addresses only this point: “Identifies psychological pricing (specifically, 'odd' or '.99' pricing).” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[3 marks] · no calculator - 19.
A manufacturer's unit cost of producing a product is $40. It wants to set a selling price using cost-plus pricing, with a desired mark-up of 25% on cost. (a) Calculate the selling price using cost-plus pricing. (b) State one limitation of cost-plus pricing as a method of setting price.
[3 marks] - 20.
Marking analysis: A learner attempts the following task: “A manufacturer's unit cost of producing a product is $40. It wants to set a selling price using cost-plus pricing, with a desired mark-up of 25% on cost. (a) Calculate the selling price using cost-plus pricing. (b) State one limitation of cost-plus pricing as a method of setting price.” Their response addresses only this point: “Uses the formula: selling price = unit cost × (1 + mark-up percentage).” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[3 marks] - 21.
A company's promotion for a new snack food includes a prime-time television advertisement seen by a broad general audience, and separately, a discount coupon handed directly to shoppers inside supermarkets. (a) Identify which of these two promotional methods is 'above the line' and which is 'below the line'. (b) Explain the key difference between above-the-line and below-the-line promotion.
[3 marks] · no calculator - 22.
Marking analysis: A learner attempts the following task: “A company's promotion for a new snack food includes a prime-time television advertisement seen by a broad general audience, and separately, a discount coupon handed directly to shoppers inside supermarkets. (a) Identify which of these two promotional methods is 'above the line' and which is 'below the line'. (b) Explain the key difference between above-the-line and below-the-line promotion.” Their response addresses only this point: “Identifies the television advertisement as above-the-line promotion, and the in-store coupon as below-the-line promotion.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[3 marks] · no calculator - 23.
A furniture manufacturer is deciding between selling directly to customers through its own website (a direct channel) and selling through large third-party furniture retail chains (an indirect channel). (a) Explain one advantage of the direct channel for the manufacturer. (b) Explain one advantage of the indirect channel for the manufacturer.
[4 marks] · no calculator - 24.
Marking analysis: A learner attempts the following task: “A furniture manufacturer is deciding between selling directly to customers through its own website (a direct channel) and selling through large third-party furniture retail chains (an indirect channel). (a) Explain one advantage of the direct channel for the manufacturer. (b) Explain one advantage of the indirect channel for the manufacturer.” Their response addresses only this point: “States a valid advantage of the direct channel, such as keeping the full profit margin that would otherwise go to a retailer, or maintaining full control over how the product is presented and sold.” Evaluate the response against the complete 4-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[4 marks] · no calculator - 25.
A soft drink brand has built strong customer loyalty over many years, such that many customers continue to buy it even when cheaper, similar alternatives are available on the same shelf. (a) Identify the marketing concept illustrated here. (b) Explain how this allows the company to charge a premium price compared with less well-known competitor brands.
[3 marks] · no calculator - 26.
Marking analysis: A learner attempts the following task: “A soft drink brand has built strong customer loyalty over many years, such that many customers continue to buy it even when cheaper, similar alternatives are available on the same shelf. (a) Identify the marketing concept illustrated here. (b) Explain how this allows the company to charge a premium price compared with less well-known competitor brands.” Their response addresses only this point: “Identifies brand loyalty (built through successful branding).” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[3 marks] · no calculator - 27.
A company plots its own product and its competitors' products on a perceptual map, using 'price' on one axis and 'quality' on the other. (a) Explain how a business can use a perceptual map like this to identify a potential gap in the market. (b) Suggest one action the business could take if it identifies such a gap.
[3 marks] · no calculator - 28.
Marking analysis: A learner attempts the following task: “A company plots its own product and its competitors' products on a perceptual map, using 'price' on one axis and 'quality' on the other. (a) Explain how a business can use a perceptual map like this to identify a potential gap in the market. (b) Suggest one action the business could take if it identifies such a gap.” Their response addresses only this point: “Explains that plotting all existing products on the map reveals clusters where many competitors already compete, as well as empty areas of the map where no current product is positioned.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[3 marks] · no calculator - 29.
A fast-food chain that is successful in its home country is planning to open its first restaurants in a country with a significantly different culture, including different tastes, religious dietary restrictions, and spending habits. (a) Explain one reason the company might need to adapt its product when entering this new market. (b) Explain one reason the company might need to adapt its promotion when entering this new market.
[4 marks] · no calculator - 30.
Marking analysis: A learner attempts the following task: “A fast-food chain that is successful in its home country is planning to open its first restaurants in a country with a significantly different culture, including different tastes, religious dietary restrictions, and spending habits. (a) Explain one reason the company might need to adapt its product when entering this new market. (b) Explain one reason the company might need to adapt its promotion when entering this new market.” Their response addresses only this point: “Explains that the company may need to adapt its menu (product) to respect religious dietary restrictions or local taste preferences, otherwise it risks alienating or excluding a large share of potential customers.” Evaluate the response against the complete 4-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[4 marks] · no calculator