Question 1(a)
[Maximum number: 2]
Define the term market growth.
CAIE A-Level Business 3.1 The Nature of Marketing Question Bank
Practise defining demand and markets, calculating market share and analysing orientation, segmentation and B2B or B2C choices before evaluating marketing's role in success.
Exam points
- define demand or supply and trace how a named factor changes quantity, price or revenue
- calculate market share from business and total market sales, retaining the percentage basis
- analyse how market type, orientation or segmentation changes the marketing decisions in the case
Covered syllabus points
Question 1
[Maximum number: 8]
Analyse two elements of OV's marketing strategy that will need to change to sell successfully to retailers.
Question 2(b)(ii)
[Maximum number: 3]
Fresh Farm (FF)
FF is a partnership in country Q that grows a range of fruits and vegetables, such as apples, carrots and potatoes. FF also provides an advisory service to other farmers. The partnership was established in 2018 by three friends, Amrit, Harry and Sally, who provided the working capital. Their aim was to produce healthy and tasty food for themselves and others.
FF grows crops using natural methods and practices. The produce is free from chemicals and pesticides. It only uses renewable energy sources, such as solar panels and wind turbines. It harvests the crops by hand or using simple machines that minimise damage or waste, but this is labour intensive.
FF sells its products directly to consumers through its own farm shop and online delivery service. It also sells to local restaurants. Table 2.1 shows information on FF's revenue and costs in 2024.
Table 2.1 Extract from FF's financial data for 2024
FF has gained a loyal customer base who appreciate the quality, flavour and nutrition of its products. However, FF also faces some challenges and risks in the competitive and uncertain food market. FF has limited capacity in producing crops. Weather conditions affect its yield and quality. It also must deal with pests, diseases and natural disasters that could damage or destroy its crops.
Another challenge that FF faces is the high level of demand for its products in the market. The partnership must meet the expectations and requirements of its customers who want fresh, varied and consistent products throughout the year.
Explain one factor influencing the supply of FF's products.
Question 4
[Maximum number: 5]
Analyse one advantage to a business of using mass marketing.
Question 6(a)
[Maximum number: 8]
Analyse two reasons why there should be a close link between the marketing objectives of a business and its corporate objectives.