Practise applying marketing research, market data and marketing mix choices to customer needs, online promotion and business growth cases.
TADS is looking to expand by offering lessons in other musical instruments.
Explain one purpose of market research for a business.
AO1 = 3 marks
Award 1 mark for identification of a purpose of market research, plus 2 further marks for explaining this purpose for a business, for a maximum of 3 marks.
- A purpose of market research can be to identify your customers' needs (1) this will help you to design your products to meet those needs (1) and allow the business to be more successful (1).
NB Answers that list three purposes with no explanation will get a maximum of 1 mark.
Accept any other appropriate response.
(3)
Nantgwynfaen Organic Farm (NOF) is a farm growing a range of fruit and vegetables. It has a farm shop and offers accommodation with breakfast. It was set up by Amanda and Ken Edwards in West Wales, UK.
NOF supports farmers by selling local organic produce in its farm shop. The produce from the farm shop is served to the visitors staying overnight at the farm.
NOF is committed to being environmentally friendly by recycling, avoiding the use of packaging and reducing the use of electricity.
Which one of the following is the name of a pricing strategy where a business sets a high price for a new product in the market?
Select one answer.
Penetration
Skimming
Competition
Promotional
B
State one reason why NOF segments its target market by income.
A02-1 mark
Award 1 mark for a reason why NOF segments its
target market by income.
Accept any other appropriate response.
(1)
Explain one strategy a small business might use to extend the product life cycle of one of its products.
A01-3 marks
Award 1 mark for identification of a strategy of
extending a product life cycle, plus 2 further marks for explaining the impact, for a maximum of 3 marks.
NB Answers that list three strategies with no
explanation will get a maximum of 1 mark.
Accept any other appropriate response.
(3)
Analyse the importance of marketing to NOF.
AO2 =3 marks AO3 =3 marks
AO2
- Result from marketing would enable NOF to adapt its overnight accommodation to what the customers want.
- Marketing can be used to make customers aware of its organic honey.
AO3
- This may lead to increased bookings for the overnight accommodation.
- Sales of organic honey may increase.
(6)
Level
Mark
Descriptor
0
No rewardable material.
Level 1
1-2
- Limited application of knowledge and understanding of business concepts and issues to the business context. (AO2)
- Attempts to deconstruct business information and/or issues, finding limited connections between points. (AO3)
Level 2
3-4
- Sound application of knowledge and understanding of business concepts and issues to the business context although there may be some inconsistencies. (AO2)
- Deconstructs business information and/or issues, finding interconnected points with chains of reasoning, although there may be some logical inconsistencies. (AO3)
Level 3
5-6
- Detailed application of knowledge and understanding of business concepts and issues to the business context throughout. (AO2)
- Deconstructs business information and/or issues, finding detailed interconnected points with logical chains of reasoning. (AO3)
Ocean Vibes is a boat tour business located in two tourists resorts in Portugal. During the tours, it collects wildlife research. The idea came from two young scientists, Alfredo and Pedro, who share a passion for the environment, boats and science. Ocean Vibes employs boat tour guides and a sales team in each of the two resorts.
The main goal of Ocean Vibes is to connect tourism with science. It offers dolphin and bird-watching tours to tourists and uses the boat tours to collect research data on the wildlife. Its tour guides are knowledgeable, passionate and respectful of the environment.
Customers can book the boat tours online or in the tourist resorts. They are encouraged to leave reviews on Ocean Vibes' website.
Every month Ocean Vibes provides a boat tour for students and researchers who wish to study the wildlife.
There are many other businesses offering boat tours in Portugal which makes competing in the industry a challenge.
Which one of the following is a phase of the product life cycle?
Select one answer.
Introduction
Cash cow
Dog
Star
A
State one benefit to Ocean Vibes of using competition pricing.
A02-1 mark
Award 1 mark for a benefit to Ocean Vibes of using competition pricing.
- Ocean Vibes may attract sales from other boat tour businesses (1)
NB Do not accept a benefit that is not in the context of Ocean Vibes
Accept any other appropriate response.
(1)
Irsi Chocolatier is a chocolate shop in Brussels, the capital city of Belgium. There are many other chocolate shops nearby. Opened in 1989 by the Corne family the business now has four directors and three employees. Florent Corne is the Managing Director with three other family members as Directors. Irsi Chocolatier opens from Tuesday till Saturday. The shop sells a variety of handmade chocolates and jelly fruit sweets. It delivers locally and has a website for information purposes only.
Which one of the following is an example of a good?
Select one answer.
Motor vehicle
Financial advice
Car washing
Gardening
A
Explain one benefit for a business that uses test marketing.
A01-3 marks
Award 1 mark for identification of a benefit for a business that uses test marketing, plus 2 further marks for explaining the benefit, for a maximum of 3 marks.
- The risk of failure is reduced (1) as the new product is only tested in one area gaining feedback from customers (1) leading to modifications being made before the final launch (1)
NB Answers that list three benefits with no explanation will get 1 mark only.
Accept any other appropriate response.
(3)
Analyse the importance of branding for Irsi Chocolatier.
AO2 =3 marks AO3 =3 marks
AO2
- As a business that started in 1989 it has been able to develop and maintain a strong image for its chocolates and sweets
- Branding against local competing chocolate shops helps Irsi Chocolatier stand out
A03
- This is important as the brand helps create recognition of the business allowing Irsi Chocolatier to continue as a long-standing business
- As the brand becomes stronger a higher price for the products can be charged and new products being introduced have a higher success rate due to its current branding
(6)
Level
Mark
Descriptor
0
No Rewardable material.
Level 1
1-2
- Limited application of knowledge and understanding of business concepts and issues to the business context. (AO2)
- Attempts to deconstruct business information and/or issues, finding limited connections between points. (AO3)
Level 2
3-4
- Sound application of knowledge and understanding of business concepts and issues to the business context although there may be some inconsistencies. (AO2)
- Deconstructs business information and/or issues, finding interconnected points with chains of reasoning, although there may be some logical inconsistencies. (AO3)
Level 3
5-6
- Detailed application of knowledge and understanding of business concepts and issues to the business context throughout. (AO2)
- Deconstructs business information and/or issues, finding detailed interconnected points with logical chains of reasoning. (AO3)