Practise applying marketing research, market data and marketing mix choices to customer needs, online promotion and business growth cases.
Huawei has to maintain the quality of its products to be able to compete with other businesses, as well as generating profit. It must also ensure that the products it produces meet the needs of its customers as well as introducing new and different forms of technology. On its website it states 'Huawei are committed to bringing digital to every person, home and organisation for a fully connected, intelligent worlds'.
In January 2019 Huawei launched the Huawei 10 Pro smartphone in the US at a cost of 5353 Renminbi (CNY).
The exchange rate was $ 1=6.70 CNY (Chinese Yuan Renminbi)
Evaluate why Huawei would carry out market research before designing a new product. You should use the information provided as well as your own knowledge of business.
AO1 = 3 marks AO2 = 3 marks
AO3 = 3 marks AO4 = 3 marks
- Market research finds out what customers' needs and wants are
- By carrying out market research Huawei will be able to make informed decisions as to actions it should take
A02
- If Huawei produces a watch that very few customers want then it could waste a great deal of money
- Huawei may decide to add additional features or reduce or increase the size of its smartphones from comments made by potential customers
A03
- This could have a negative effect on Huawei's financial situation and also impact upon the development of other products such as tablets that Huawei makes and sells
- This could help increase sales of tablets and smartphones and enable Huawei to remain competitive
A04
- However, producing a watch that no other business is offering could mean that it sells more of the products and gains a competitive advantage
- However, there is no guarantee that all the market research carried out is worthwhile as customers' tastes and needs are changing constantly in light of new technological developments
(12)
Level
Mark
Descriptor
0
No rewardable material.
Level 1
1-4
- Demonstrates elements of knowledge and understanding of business concepts and issues, with limited business terminology used (AO1).
- 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).
- Makes a judgement, providing a simple justification based on limited evaluation of business information and issues relevant to the choice made (AO4).
Level 2
5-8
- Demonstrates mostly accurate knowledge and understanding of business concepts and issues including appropriate use of business terminology in places (AO1).
- 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).
- Makes a judgement, providing a justification based on sound evaluation of business information and issues relevant to the choice made (AO4).
Level 3
9-12
- Demonstrates accurate knowledge and understanding of business concepts and issues throughout, including appropriate use of business terminology (AO1).
- 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).
- Makes a judgement, providing a clear justification based on a thorough evaluation of business information and issues relevant to the choice made (AO4).
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)
Saha is a small business in Türkiye (formerly known as Turkey) that opened in 2020 with 15 employees. It designs and manufactures robots which are used in hospitals, hotels and restaurants. In hospitals its robots are used to move medical supplies between departments. In hotels and restaurants, the robots are used to welcome customers as they arrive and deliver food and drinks to hotel rooms and restaurant tables. Saha provides a seven day a week customer service for all businesses buying its robots.
Many new businesses are entering the global robot market and are competing for market share. Competitors in Türkiye include NIO, Zoox and Vention.
Saha has ambitious growth plans and has started to design robots that will be used in the home to help people with cleaning, shopping, security and entertainment. It aims to become a multinational business within five years to manufacture robots in all continents of the world.
Which one of the following is an example of secondary research?
Select one answer.
Government reports
Surveys
Focus groups
Observations
A
Analyse two methods of primary research that could be of benefit to Saha when developing its products.
AO2 = 3 marks AO3 = 3 marks
A02
A03
Feedback from interviews will help Saha design robots which are better suited to the needs of its customers based in the hospitals
- The discussions in the focus groups may give Saha ideas on how to improve the function of the robots to meet the requirements of its customers
(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).
Question
Number
State one reason why branding is important to
Saha.
Mark
Answer