CAIE IGCSE Business Studies 3.3. Marketing mix Question Bank
Practise applying product, price, place and promotion decisions to case studies, then justifying the best marketing strategy.
- Syllabus
- 2027–2029
- Course
- Business 0264
Exam points
- apply marketing mix elements to a case, using data on price, distribution, promotion or product range
- evaluate alternative channels, pricing methods or promotion choices before recommending one
- link ecommerce or new-country entry decisions to costs, customer access, competition and risk
Covered syllabus points
3.3. Marketing mix question 1
[Maximum number: 10]
Caleb wants to be an entrepreneur. He plans to start up a business selling handmade furniture including tables and chairs. He will sell his products to a niche market. Having a good brand image will be important. Caleb knows there are many legal controls that can impact his marketing strategy. He is considering selling his products using e-commerce. Caleb also has to decide on a suitable location for the business.
Question (a)
(a)
Outline two reasons why having a good brand image might be important for Caleb's business.
Reason 1:
Reason 2:
[ 4 ]
Award 1 mark for each relevant reason (max 2).
Award 1 mark for each relevant reference to this business (max 2).
Points might include:
- Increase sales / customers [k] of his handmade product [app]
- To differentiate the product (from competitors) [k] when using ecommerce [app]
- Helps promote / aids recognition [k] of his furniture [app]
- Create / maintain customer loyalty / customers will keep buying its products rather than competitors [k] which could be important for this start-up business [app]
- Can charge higher price [k] helpful as it's a niche market [app]
Other appropriate responses should also 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.
Question (b)
(b)
Explain two threats to Caleb's business of using e-commerce to sell his products.
Threat 1:
Explanation:
Threat 2:
Explanation:
[ 6 ]
Award 2 marks for identification of each relevant threat (max 2).
Award 2 marks for each relevant reference to this business (max 2).
Award 2 marks for each relevant explanation (max 2).
Points might include:
- More competition / difficult to stand out from competition [k] especially as it's a new business [app] leading to less revenue [an]
- No passing trade [k] so could mean fewer sales [an] which could influence Caleb's location decision [app]
- Not everyone has access to the internet [k] which reduces its target market [an] for this niche market product [app]
- Cost to design / maintain website [k] increasing cash outflows [an]
- Lack of personal service / no face-to-face contact with customers [k] which might make it difficult to develop brand loyalty [app] which could damage its reputation [an]
- Need to pay for pop-ups to advertise on popular sites / feature at top of search engine listings [k]
- Risk of hackers / fraud [k]
Other appropriate responses should also 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:
- (Handmade) furniture or examples such as tables/chairs
- Legal controls over marketing
- Location decision
- New business / start-up
- Niche market
- Brand loyalty (is important)
- Entrepreneur
Other appropriate examples in context can still be credited.
3.3. Marketing mix question 2
[Maximum number: 10]
CFG is a social enterprise. It buys cocoa beans from local farmers and then uses the beans to make chocolate. Being ethical is important to the business. CFG has developed a new chocolate bar. The Marketing Manager plans to use skimming as its pricing method, and retailers as its distribution channel for the new product. He knows there are many legal controls over marketing that might affect a business.
Question (a)
(a)
Outline one advantage and one disadvantage to CFG of using skimming as its pricing method.
Advantage:
Disadvantage:
[ 4 ]
Award 1 mark for each relevant advantage/disadvantage (max 2).
Award 1 mark for each relevant reference to this business (max 2).
Points might include:
Advantages:
- Helps establish a high-quality image/customers may think it is a good quality [k] which may also help as want to be ethical [app]
- Can quickly recover research/development costs [k] which is important as developed a new product [app]
- Higher revenue per item [k] for its chocolate [app]
- May have a lower break-even output [k]
Disadvantages:
- High price might discourage (potential) customers [k] for this social enterprise [app]
- High prices/profitability could encourage competitors to enter market [k] so may not be able to support local farmers [app]
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:
- Social enterprise
- Cocoa beans
- Local farmers
- Chocolate (bar)
- Retailers
- Ethical
- (Developed) a new product
- Legal controls over marketing
Other appropriate responses can be credited.
Question (b)
(b)
Explain one advantage and one disadvantage to CFG of using retailers as its distribution channel for the new product.
Advantage:
Explanation:
Disadvantage:
Explanation:
[ 6 ]
Award 1 mark for identification of each relevant advantage/disadvantage (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:
Advantages:
- Producers can sell in large quantities to retailers [k] increasing revenue [an] from its new product [app]
- Reduced costs (compared to selling direct to consumers) [k] increasing profit margin [an] in this social enterprise [app]
- Retailer shares the cost of holding inventory [k] lowering expenses [an]
- Retailers will promote the product [k] reducing the cost of promotion/increasing sales [an]
- Access wider range of customers [k]
Disadvantages:
- No direct contact with consumer [k] about its chocolate bar [app] so may not adapt to changing needs [an]
- Final price (paid by consumer) is often high [k] so may be uncompetitive [an]
- Retailer takes some of profit away from the producer [k]
- Producer loses some control of marketing mix [k]
- Retailers usually sell competitors' products as well [k]
Other appropriate responses should also 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:
- Social enterprise
- Cocoa beans
- (Make) bars of chocolate
- Ethical
- (Local) farmers
- Legal controls over marketing
Other appropriate responses can be credited.
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