CAIE IGCSE Business Studies 3.3.4 promotion

Award 1 mark for identification of each relevant advantage (max 2).

Award 1 mark for each relevant reference to this business (max 2).

Award 1 mark for each relevant explanation (max 2).

Points might include:

- Can target specific groups of customers [k] which could help encourage brand loyalty [an] at each of the 5 locations [app]

- Low-cost [k] so fewer cash outflows/lower expenses [an] which could help improve the profit margin of 25% [app]

- Cover wide area/seen by many people [k] increasing sales/revenue/attract customers [an] for the cafe [app]

- Quick to update [k] so can spend time on other tasks [an] such as analysing the financial statements [app]

- Can reach groups that are difficult to reach any other way [k]

Other appropriate responses should be credited.

To use words from the stem as application, the reference must be appropriate (i.e. make sense) in relation to the point being made.

The following words are likely to be appropriate for this question:

- Café

- Selling food/drinks or examples such as coffee

- 5 (cafés)

- 25% (profit margin)

- Improve profit margin

- $ 600000 (revenue)

- $ 150000 (profit)

- $ 750000 (capital employed)

- Tertiary sector

Other appropriate examples can be credited.

Advantages must be to the business not the customer.