CAIE A-Level Business AS 3.3 The Marketing Mix Questions

Practise integrating product, price, promotion and place decisions, using calculations and case evidence to analyse trade-offs and evaluate a coherent marketing strategy.

Exam points

apply each relevant P to the target market rather than discussing product, price or promotion in isolation
use pricing, sales or portfolio data to support a marketing decision and trace its commercial effect
evaluate the mix by testing consistency between objectives, customer needs, competitors and resources

Covered syllabus points

3.3.1—Marketing mix elements 3.3.2—Product 3.3.3—Product portfolio analysis 3.3.4—Pricing methods 3.3.5—Promotion methods 3.3.6—Place and distribution

[Maximum number: 12]

'Promotion is the most important element of the marketing mix for the success of a parcel delivery business.'

Evaluate this view.

OR

2 marks for □

2 marks for □

2 marks for □

6 marks for □

Indicative content

Responses may include:

AO1 Knowledge and understanding - 2 marks for developed knowledge and understanding L2 . 1 mark for limited knowledge and understanding L1 ${ }^{\kappa}$

- elements of the marketing mix

- specific understanding of promotion

AO2 Application - 2 marks for developed application L2 1 mark for limited application L1

- role/activities of parcel delivery business e.g. delivering on time

- named business e.g. Amazon, DHL, DPD, Parcelforce, may be a small business

AO3 Analysis - 2 marks for developed analysis L2 ${ }^{\text{\#}}$ 1 mark for limited analysis L1 1 №

- could be B2B or B2C, which affects type of promotion chosen to create more awareness of the business and more sales

- could be B2B or B2C, which affects which element(s) of MM are most effective

- could look at the benefits and limitations of all elements of MM which could lead to success of the business

- may choose to compare those elements of the MM considered to be more applicable to this type of business e.g. price or promotion but can discuss product and place

- different types of promotion (or any element of the MM ) can be carried out at different stages of the product life cycle

- this is a service rather than a good therefore this could affect the choice of promotion type or element of MM

- this may be an international business and size may play a role in achieving success

- candidates may focus on the different types of promotion rather than other parts of the MM , which is a valid response

AO4 Evaluation - 6 marks for EVAL

Figure for Answer to Question 1 — CAIE A-Level Business AS

A judgment/conclusion is made as to whether promotion is the most important element of the marketing mix for the success of a parcel delivery business.

These judgements/conclusions may be made at any point in the essay, not only in a concluding section.

- what would be classed as success for this type of business?

- would success be increasing number of sales, value of sales, market share?

- how important is promotion for this type of business? Would it matter whether the delivery is B2B or B2C?

- is the delivery business irrelevant to the product that is contained within the parcel?

- what is most important regarding delivery to the customer? Speed, cost, quality of service, security, protection?

- which elements of the MM can effectively be used? Candidates may find it difficult to apply all aspects of the MM but it can be done. This could be a differentiating factor in this evaluation.

- the choice of the type of promotion or element of the MM may depend on how well known the business already is and what its objectives are.

Accept all valid responses.

[Maximum number: 3]

Fizzy Drinks (FD)

FD is a private sector business that manufactures an international brand of carbonated drinks. Its slogan was 'A premium drink for premium customers'. The market for FD's drinks is very competitive, with 7 national and 12 international brands all competing in the same market. Recently FD lost the title of market leader to TR, one of its largest competitors. TR is a multinational public limited company.

Table 2.1 FD financial data 2023

Employee morale has dropped as a result of the negative feedback. Key employees have left to work for FD's competitors. The lack of experienced employees has led to a drop in the productivity of the production process.

Explain one intangible attribute of FD's products.

[Maximum number: 12]

Festival Wear (FW)

FW is a partnership started by two friends, Maz and Jane. FW manufactures and sells high quality T-shirts at $ 40 each. The business can manufacture 35000 T-shirts per month using mass customisation. The T-shirts are only sold at music festivals and concerts and are customised to each event. FW has never advertised the T-shirts, relying on a sales team to attend a festival or concert and personally sell the T-shirts.

Current costs:
- variable: $ 10 per T-shirt
- fixed: $ 200000 per month.

Sales average 27000 T-shirts per month. Currently the sales team is paid a monthly salary, but Maz is proposing a new payment method in order to increase sales volume. This will mean a lower monthly salary but a commission of $ 2 per T-shirt will be paid. Maz estimates that sales volume would increase to 30000 per month.

Costs if the new payment method is introduced:
- variable: $ 12 per T-shirt
- fixed: $ 182000 per month.

Evaluate whether FW should expand its product portfolio to increase its sales volume.

Level	AO2 Application 2 marks	AO3 Analysis 2 marks	AO4 Evaluation 6 marks
3			5-6 marks Developed evaluation in context - A developed judgement/conclusion is made in the business context. - Developed evaluative comments which balance some key arguments in the business context.
2	2 marks Developed application of relevant point(s) to the business context.	2 marks Developed analysis that identifies connections between causes, impacts and/or consequences.	3-4 marks Developed evaluation - A developed judgement/conclusion is made. - Developed evaluative comments which balance some key arguments.
1	1 mark Limited application of relevant point(s) to the business context.	1 mark Limited analysis that identifies connections between causes, impacts and/or consequences.	1-2 marks Limited evaluation - A judgement/conclusion is made with limited supporting comment/evidence. - An attempt is made to balance the arguments.
0	0 marks No creditable response.	0 marks No creditable response.	0 marks No creditable response.

Indicative content

AO1 Knowledge and understanding

Knowledge of product portfolio (max 2 marks), including:

- Range of products in one business

- Product diversification

- Meet customer demand for more product choice

Could relate to product life-cycle, Boston matrix

Could consider impact on the 4 ps / 4 cs e.g.

- Price

- Product

- Promotion

- Place

AO2 Application

Context applied to features of FW □ (max 2 marks), including:

- Reliance on one product is risky so maybe should diversify into baseball caps

- May need to change distribution method - sell at music festivals only - maybe could sell elsewhere e.g., other retailers, online

- Other products more suitable e.g., posters

- Move to a bigger factory provides opportunity

- Requires $\$ 4 \mathrm{~m}$ investment

- FW is expanding

AO3 Analysis

Limited analysis - candidate shows one link in the chain of analysis.

Developed analysis - candidate shows two or more links in the chain of analysis.

- Requires research to establish demand

- Single product portfolio - is the market saturated?

- Satisfy more customers - increasing sales volume and increasing revenue and profit

- There is a lack of direction for the future of the business and so there is a risk to the security and stability of FW.

- Need for an integrated marketing mix to increase sales volume

AO4 Evaluation

Limited evaluation - unsupported judgement and/or a weak attempt at evaluative comment

Developed evaluation E - supported judgement and/or reasonable evaluative comment

Developed evaluation in context ${ }^{\text {EE }}$ - supported judgement in context and/or reasonable evaluative comment in context.

- An evaluation is likely to come from candidates making a judgment and justification of expanding product portfolio.

- Any changes that might need to be made to make it more effective/less risky.

- Are there more suitable methods of increasing sales volume?

- Business expanding is now the right time to increase products.

- High investment in the new factory needs careful consideration of equipment if expand portfolio.

Accept all valid responses.

Note: Developed evaluation in context ses should link to sales.

All question bank results loaded

Knowledge & understanding	Knowledge of an intangible attribute	1 mark
Explanation	Explanation of an intangible attribute	1 mark
Context	Applied to a business context/ business environment	1 mark

Covered syllabus points

Question 1

Question 2

Question 3