IB · BM SL

Business Management SL

Marketing — Unit 5

Name: ____________________Date: October 14, 2026

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
Marking points
- Identifies primary research as more appropriate.
- Justifies this by explaining that no existing (secondary) data can capture opinions specific to this company's own redesigned product and its own customers.
- Suggests a valid primary method, such as a customer satisfaction survey or focus group.
- States a valid limitation, such as sampling bias, cost, time required, or a small sample size limiting how representative results are.
Examiner tip: Choose primary or secondary research based on whether the specific information already exists elsewhere, not on which is generally 'better'.
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
Marking points
- Recognises credit for the stated point: Identifies primary research as more appropriate.
- Identifies the missing requirement: Justifies this by explaining that no existing (secondary) data can capture opinions specific to this company's own redesigned product and its own customers.
- Identifies the missing requirement: Suggests a valid primary method, such as a customer satisfaction survey or focus group.
- Identifies the missing requirement: States a valid limitation, such as sampling bias, cost, time required, or a small sample size limiting how representative results are.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
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
Marking points
- Suggests a valid pricing strategy, such as premium pricing.
- Justifies it by linking the ethical sourcing and premium positioning to customers' willingness to pay a higher price for perceived added value.
- Suggests a valid promotional method, such as targeted social media campaigns, sustainability certification/labelling, or partnerships with environmental organisations.
- Explains why the chosen method specifically reaches the target segment of environmentally conscious customers.
Examiner tip: Link every marketing-mix recommendation explicitly back to the stated target market, not just to the product in general.
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
Marking points
- Recognises credit for the stated point: Suggests a valid pricing strategy, such as premium pricing.
- Identifies the missing requirement: Justifies it by linking the ethical sourcing and premium positioning to customers' willingness to pay a higher price for perceived added value.
- Identifies the missing requirement: Suggests a valid promotional method, such as targeted social media campaigns, sustainability certification/labelling, or partnerships with environmental organisations.
- Identifies the missing requirement: Explains why the chosen method specifically reaches the target segment of environmentally conscious customers.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
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
Marking points
- Identifies the decline stage of the product life cycle.
- Suggests a valid extension strategy, such as a product relaunch/redesign, price reduction, new market entry, or new use/feature.
- Briefly links the suggested strategy to how it could realistically slow the sales decline for this specific product.
Examiner tip: An extension strategy should be tied to a concrete change (price, features, market, promotion), not a vague statement such as 'market it better'.
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
Marking points
- Recognises credit for the stated point: Identifies the decline stage of the product life cycle.
- Identifies the missing requirement: Suggests a valid extension strategy, such as a product relaunch/redesign, price reduction, new market entry, or new use/feature.
- Identifies the missing requirement: Briefly links the suggested strategy to how it could realistically slow the sales decline for this specific product.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
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
Marking points
- Identifies demographic segmentation, specifically by age.
- Explains that segmenting allows the company to tailor its marketing mix (product features, messaging, price) more precisely to each group's distinct needs and preferences.
- Explains that this precise targeting is likely to be more effective at generating sales in each segment than a single generic range aimed at everyone.
Examiner tip: Segmentation variables include demographic (age, gender, income), geographic (region, climate), psychographic (lifestyle, values) and behavioural (usage rate, brand loyalty) — always name the specific variable being used.
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
Marking points
- Recognises credit for the stated point: Identifies demographic segmentation, specifically by age.
- Identifies the missing requirement: Explains that segmenting allows the company to tailor its marketing mix (product features, messaging, price) more precisely to each group's distinct needs and preferences.
- Identifies the missing requirement: Explains that this precise targeting is likely to be more effective at generating sales in each segment than a single generic range aimed at everyone.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
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
Marking points
- Identifies niche marketing.
- Explains that the business serves a small, specific, well-defined segment (professional musicians wanting handcrafted instruments) rather than trying to appeal to the mass market.
- Explains that this approach suits a small-scale producer with limited output capacity and specialist skills, allowing it to charge a premium price and avoid direct competition with mass-market manufacturers.
Examiner tip: Niche marketing targets a small, well-defined segment with a specialised offer; mass marketing targets the broadest possible market with a standardised offer.
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
Marking points
- Recognises credit for the stated point: Identifies niche marketing.
- Identifies the missing requirement: Explains that the business serves a small, specific, well-defined segment (professional musicians wanting handcrafted instruments) rather than trying to appeal to the mass market.
- Identifies the missing requirement: Explains that this approach suits a small-scale producer with limited output capacity and specialist skills, allowing it to charge a premium price and avoid direct competition with mass-market manufacturers.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
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
Marking points
- 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.
- States that quota sampling deliberately selects a set number of people from specific pre-defined groups (quotas) so that the sample's characteristics match the population's known characteristics.
- Suggests quota sampling as the better method for this purpose.
- Justifies this by explaining that quota sampling directly guarantees the desired proportion of men and women in the sample, whereas pure random sampling might, by chance, produce an unrepresentative gender split.
Examiner tip: Choose quota sampling whenever it is important that the sample mirrors known proportions of the population on a specific characteristic; choose random sampling when avoiding researcher bias in selection is the priority.
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
Marking points
- Recognises credit for the stated 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.
- Identifies the missing requirement: States that quota sampling deliberately selects a set number of people from specific pre-defined groups (quotas) so that the sample's characteristics match the population's known characteristics.
- Identifies the missing requirement: Suggests quota sampling as the better method for this purpose.
- Identifies the missing requirement: Justifies this by explaining that quota sampling directly guarantees the desired proportion of men and women in the sample, whereas pure random sampling might, by chance, produce an unrepresentative gender split.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
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
Marking points
- Identifies the large-scale rating survey as quantitative research.
- Identifies the focus group as qualitative research.
- States a valid advantage of qualitative research, such as providing richer, more detailed insight into customers' underlying reasons and feelings, which numerical ratings alone cannot capture.
- States a valid advantage of quantitative research, such as being based on a much larger sample size, making the results more statistically reliable and easier to generalise to the whole customer base.
Examiner tip: Quantitative research answers 'how many/how much' with numerical data from large samples; qualitative research answers 'why' with in-depth, non-numerical data from smaller samples.
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
Marking points
- Recognises credit for the stated point: Identifies the large-scale rating survey as quantitative research.
- Identifies the missing requirement: Identifies the focus group as qualitative research.
- Identifies the missing requirement: States a valid advantage of qualitative research, such as providing richer, more detailed insight into customers' underlying reasons and feelings, which numerical ratings alone cannot capture.
- Identifies the missing requirement: States a valid advantage of quantitative research, such as being based on a much larger sample size, making the results more statistically reliable and easier to generalise to the whole customer base.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
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
Marking points
- Identifies price skimming for the technology launch.
- Justifies this by explaining that with no direct competitors, the company can charge a high initial price to early adopters willing to pay a premium, maximising revenue before competitors enter and before gradually lowering the price.
- Identifies penetration pricing for the detergent launch.
- Justifies this by explaining that setting a low initial price in a crowded, competitive market helps the new brand attract price-sensitive customers away from established competitors and quickly build market share.
Examiner tip: Skimming suits genuinely novel products with little competition; penetration suits new entrants to an already competitive market who need to win customers away from established rivals.
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
Marking points
- Recognises credit for the stated point: Identifies price skimming for the technology launch.
- Identifies the missing requirement: Justifies this by explaining that with no direct competitors, the company can charge a high initial price to early adopters willing to pay a premium, maximising revenue before competitors enter and before gradually lowering the price.
- Identifies the missing requirement: Identifies penetration pricing for the detergent launch.
- Identifies the missing requirement: Justifies this by explaining that setting a low initial price in a crowded, competitive market helps the new brand attract price-sensitive customers away from established competitors and quickly build market share.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
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
Marking points
- Identifies psychological pricing (specifically, 'odd' or '.99' pricing).
- Explains that customers tend to focus on and process the leftmost digit(s) of a price first, so $9.99 is often mentally categorised as being 'in the $9 range' rather than 'in the $10 range'.
- Explains that this creates a perception of a meaningfully lower price, even though the actual monetary saving is negligible.
Examiner tip: Psychological pricing works on perception, not on the actual size of the discount — it is a tactic about how the number is read, not how much money is genuinely saved.
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
Marking points
- Recognises credit for the stated point: Identifies psychological pricing (specifically, 'odd' or '.99' pricing).
- Identifies the missing requirement: Explains that customers tend to focus on and process the leftmost digit(s) of a price first, so $9.99 is often mentally categorised as being 'in the $9 range' rather than 'in the $10 range'.
- Identifies the missing requirement: Explains that this creates a perception of a meaningfully lower price, even though the actual monetary saving is negligible.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
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]
Marking points
- Uses the formula: selling price = unit cost × (1 + mark-up percentage).
- Calculates selling price = 40 × 1.25 = $50.
- States a valid limitation, such as cost-plus pricing ignoring what competitors charge or what customers are actually willing to pay, potentially setting a price that is too high or too low relative to the market.
Examiner tip: Cost-plus pricing guarantees a specific profit margin on paper, but it is entirely internally focused and does not check that the resulting price is realistic given demand or competition.
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]
Marking points
- Recognises credit for the stated point: Uses the formula: selling price = unit cost × (1 + mark-up percentage).
- Identifies the missing requirement: Calculates selling price = 40 × 1.25 = $50.
- Identifies the missing requirement: States a valid limitation, such as cost-plus pricing ignoring what competitors charge or what customers are actually willing to pay, potentially setting a price that is too high or too low relative to the market.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
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
Marking points
- Identifies the television advertisement as above-the-line promotion, and the in-store coupon as below-the-line promotion.
- Explains that above-the-line promotion uses mass media (such as television, radio or print) to reach a broad, general audience, typically paid for directly to a media owner.
- Explains that below-the-line promotion targets a more specific audience more directly, such as through coupons, direct mail, or in-store promotions, often without relying on a mass-media intermediary.
Examiner tip: Above-the-line builds broad brand awareness; below-the-line more directly targets and converts specific customers at the point of decision — an effective promotional mix usually combines both.
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
Marking points
- Recognises credit for the stated point: Identifies the television advertisement as above-the-line promotion, and the in-store coupon as below-the-line promotion.
- Identifies the missing requirement: Explains that above-the-line promotion uses mass media (such as television, radio or print) to reach a broad, general audience, typically paid for directly to a media owner.
- Identifies the missing requirement: Explains that below-the-line promotion targets a more specific audience more directly, such as through coupons, direct mail, or in-store promotions, often without relying on a mass-media intermediary.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
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
Marking points
- 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.
- Explains this advantage in relation to the manufacturer's own situation, e.g., higher margin per unit sold directly.
- States a valid advantage of the indirect channel, such as reaching a much larger number of customers quickly through the retailer's existing store network and customer base, without the manufacturer needing to build this reach itself.
- Explains this advantage, e.g., faster market coverage and reduced need for the manufacturer to invest in its own retail infrastructure and logistics.
Examiner tip: A direct channel maximises margin and control but requires the business to build its own reach; an indirect channel sacrifices some margin and control in exchange for the retailer's existing scale and reach.
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
Marking points
- Recognises credit for the stated 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.
- Identifies the missing requirement: Explains this advantage in relation to the manufacturer's own situation, e.g., higher margin per unit sold directly.
- Identifies the missing requirement: States a valid advantage of the indirect channel, such as reaching a much larger number of customers quickly through the retailer's existing store network and customer base, without the manufacturer needing to build this reach itself.
- Identifies the missing requirement: Explains this advantage, e.g., faster market coverage and reduced need for the manufacturer to invest in its own retail infrastructure and logistics.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
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
Marking points
- Identifies brand loyalty (built through successful branding).
- Explains that loyal customers associate the brand with trust, quality or identity, making them less sensitive to price differences with unfamiliar alternatives.
- Explains that this reduced price sensitivity allows the company to charge a premium price without losing significant sales volume to cheaper competitors.
Examiner tip: Strong branding effectively reduces the price elasticity of demand for a product, which is precisely why it enables premium pricing.
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
Marking points
- Recognises credit for the stated point: Identifies brand loyalty (built through successful branding).
- Identifies the missing requirement: Explains that loyal customers associate the brand with trust, quality or identity, making them less sensitive to price differences with unfamiliar alternatives.
- Identifies the missing requirement: Explains that this reduced price sensitivity allows the company to charge a premium price without losing significant sales volume to cheaper competitors.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
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
Marking points
- 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.
- Explains that an empty area representing a combination of price and quality that customers might want, but that no competitor currently offers, represents a potential market gap.
- Suggests a valid action, such as developing or repositioning a product to fill the identified gap, targeting that specific combination of price and quality.
Examiner tip: A perceptual map is only useful if the axes chosen genuinely reflect the factors customers care about most when comparing products in that market.
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
Marking points
- Recognises credit for the stated 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.
- Identifies the missing requirement: Explains that an empty area representing a combination of price and quality that customers might want, but that no competitor currently offers, represents a potential market gap.
- Identifies the missing requirement: Suggests a valid action, such as developing or repositioning a product to fill the identified gap, targeting that specific combination of price and quality.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
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
Marking points
- 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.
- Gives a specific, plausible example of such a product adaptation.
- Explains that the company may need to adapt its promotional messaging, imagery, or language to align with local cultural norms and values, since messaging that works in the home market could be ineffective or even offensive elsewhere.
- Gives a specific, plausible example of such a promotional adaptation.
Examiner tip: Entering an international market often requires adapting some elements of the marketing mix (a 'glocal' approach) while keeping a consistent global brand identity in others.
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
Marking points
- Recognises credit for the stated 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.
- Identifies the missing requirement: Gives a specific, plausible example of such a product adaptation.
- Identifies the missing requirement: Explains that the company may need to adapt its promotional messaging, imagery, or language to align with local cultural norms and values, since messaging that works in the home market could be ineffective or even offensive elsewhere.
- Identifies the missing requirement: Gives a specific, plausible example of such a promotional adaptation.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.