CAIE A-Level Business 3.1.1 Marketing role

'Marketing is the most important factor that will affect the success of a new coffee shop'. Evaluate this view.

6(b)

2 marks for

2 marks for

2 marks for □

6 marks for

Indicative content

Responses may include:

AO1 Knowledge and understanding

- Marketing is the management task that links a business to its customers by identifying and meeting the needs of customers through a range of activities such as the 4Ps-product, price, promotion, place.

- Business success is considered to be determined by a number of factors such as quality of business management, degree of effective financial management, effectiveness of marketing and sales, employee experience and system and process effectiveness.

- New business characteristics may include - small number of owners and employees, small footfall, limited product range, small investment required, potential high profit margin, vulnerable to all the challenges of a small business.

- Developed knowledge why marketing is a factor affecting business success - marketing identifies and meets the needs of customers operating through the 4Ps and sets appropriate prices, determines effective advertising and sales targets - other factors include quality of management, adequacy of finance. (2 marks L2)

- Limited knowledge why marketing is a factor affecting business success - marketing is responsible for the efficiency of the sales campaign. (1 mark L1)

AO2 Application

- New coffee shops pop up regularly - could be run from a van or small stall selling drinks.

- New coffee shops could offer a range of different types of coffee e.g. latte, flavoured coffee.

- New coffee shops may offer other products e.g. other beverages, cakes, small savoury snacks.

- Developed application - how marketing might be applied to the development of a new coffee shop - social media campaign informing customers of the different variety of coffee beans they use in their drinks e.g. ethical sourcing. ( 2 marks L2)

- Limited application - how marketing might be applied to the development of a new coffee shop - advertising the types of beverages and food sold in the shop. (1 mark L1)

6(b)

AO3 Analysis

- Marketing activities - can support and underpin the success of small businesses - carry out effective sales and promotion strategies

- Marketing activities - can create awareness of a product/service - establish and strengthen customer relationships

- Marketing activities - cost money and early activity for a new small business may require substantial expenditure

- Cost management needs to be effective - new small businesses may have little cash after set-up costs - working capital needs to be carefully managed

- Entrepreneurial and management skills - success may require more than enthusiasm - regular review of the business model may be required

- Product quality - continuous attention to customer perceptions of quality needed - variations and product additions may be needed

- Customer satisfaction - the product/service offer will succeed if a USP (for the product or attractiveness of the premises) is established.

- Developed analysis - marketing ensures that sales campaigns are effective and promotion strategies are implemented for a business - this ensures that a market presence is established as customers are made aware of the offer, leading to healthy initial sales and revenue. (2 marks □

- Limited analysis - the use of the 4Ps (especially promotion) stimulates the sales of a new business. (1 mark □2)

AO4 Evaluation

- Eval 6 - developed judgement/conclusion is made in context (new coffee shop) (6 marks )

- Eval 5 - developed evaluative comments given in context (new coffee shop) (5 marks

- Eval 4 - developed judgement/conclusion is made, not in the context of a new coffee shop. (4 marks)

- Eval 3 - developed evaluative comments made, not in the context of a new coffee shop. (3 marks)

- Eval 2 - judgement/conclusion is made but with little supporting evidence, again not in context. ( 2 marks )

- Eval 1 - an attempt is made to balance arguments. (1 marks )

- Eval 0 - no evaluation is attempted (0 marks)

- A judgement/conclusion is made as to whether marketing is the most important factor affecting the success of a new coffee shop.

- Such judgements/conclusions may be made at any point in the essay, not just in a concluding section.

- Judgement is made that marketing activities can be important to the success of a small coffee shop.

6(b)

- The question is however asked do some businesses have specific limitations in terms of how much is available to spend on marketing and might that apply to a small coffee shop?

- The question is also asked ˋare some marketing activities more important than others'? - is market research for new businesses more important than advertising and promotion?

- Could other factors be as important or more important than marketing - e.g. liquidity/cash control, effective business planning, degree of competition, the volatility of the economy.

- Is the quality of the beverages and associated food and the ambience of the shop, more important than marketing?

- Would an appropriate level of working capital be more important than marketing and would finance limit the extent and kind of marketing employed?

Accept all valid responses.