CAIE IGCSE Business Studies 3.1 marketing and the market
Use this marketing-and-market page to define market terms, explain customer needs and judge loyalty, segmentation or market-change decisions.
- Syllabus
- 2027–2029
- Course
- Business 0264
Exam points
- Define market terms such as mass market or market segmentation accurately.
- Explain customer loyalty and changing preferences using the named business context.
- Justify whether loyalty, new customers or segmentation should matter most to the business.
Covered syllabus points
3.1. Marketing and the market question 1
LRL makes skincare products including face cream. It is a private sector business in country X . One of LRL's objectives is to contribute to sustainable development. Maintaining customer loyalty is important and the Marketing Director knows a business must have an appropriate marketing mix. He is analysing data to calculate the value of LRL's market share. An extract is shown in Fig. 3.1. The total value of sales of skincare products in country X for 2023 was $120 million.
Market share data for skincare products in country X in 2023 (\%)
Explain two advantages to LRL of maintaining customer loyalty.
Advantage 1:
Explanation:
Advantage 2:
Explanation:
3.1. Marketing and the market question 2
NSL is a business based in country X．It manufactures food products including bread and breakfast cereals．NSL uses lean production in its factory．Maintaining quality is important．NSL imports 15% of its raw materials．Changes in country X＇s exchange rate can affect businesses which import raw materials．NSL＇s Marketing Manager knows the business should respond to changes in consumer spending patterns．She is aware that market research can be used to help make business decisions．
（b）Identify two reasons why consumer spending patterns might change．
Reason 1：
Reason 2：
3.1. Marketing and the market question 3
Amir and Carla are business partners. They own a luxury hotel which operates in a niche market. The business has a short hierarchical structure. Amir and Carla use Herzberg's theory of motivation to keep their 5 employees well motivated. Amir and Carla are considering opening another hotel in a different city. They will need to identify a suitable source of finance if they decide to expand. Secondary market research can be used to help a business decide whether it should expand.
Outline two advantages to Amir and Carla of operating in a niche market.
Advantage 1:
Advantage 2:
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