- Mark Scheme /

Question Answer Marks AO Element Notes Guidance

1 State two elements of the 2 Only award the first two

marketing mix. responses given.
Award 1 mark per element.
Two from: Price, product, place,
and promotion
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

2 Do you think adding new features 6 This is a general question

to a product is the best extension so there are no marks for
strategy for a manufacturing application.
business to use? Justify your
Some points could be
answer.
awarded for different
Award up to 2 marks for options or as [k] / [an],
identification of relevant points. but do not award the
same point twice.
Award up to 2 marks for relevant
development of points. For evaluation to be
awarded justification will
Award 2 marks for justified
usually follow on from
decision as to whether adding new
relevant analysis of
features is the best extension
points.
strategy for a large manufacturer to
use. USP [k] attracting
customers away from
Points might include:
competitors [an]
• Product appears more
appealing [k] attracting new /
more customers or sales [an]
increasing revenue [an]
• High cost of development /
market research [k] which the
business may not be able to
afford [an]
• Customers may dislike
changes [k] reducing sales
[an]
• Adds value to product [k]
therefore can charge a higher
price [an]
Other strategies might include:
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

• Finding new markets [k]

widening customer base [an]

• Adapt / change the packaging

[k] improving the appeal [an]
but existing customers may
not recognise the product [an]

• Increase advertising /
marketing / promotion [k]
remind customers that the
product still exists [an]
• Sell through additional
outlets [k]
Other appropriate responses should
also be credited.
Justification might include:
Adding new features involves high
development costs [k] which the
business may not be able to afford
[an]. Finding new markets [k] could
increase sales revenue [an]. There
is a risk that customers may not like
the new features [eval] so its safer
and cheaper to try to find new
markets. [eval]
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

3 Identify one benefit and one cost 2 Only award the first
to a business of developing new response given for each
products. benefit/cost.
Award 1 mark per benefit/cost (max Do not award answers
1 for each). such as cost on its
own.
Benefits might include:
• Provides diversification /
spreads risk
• Increase revenue/sales
• Enter new markets / attracts
new customers
• Allow the business to expand
into existing markets /
increase market share
/improved competitive
advantage
• Maintain customer loyalty
Costs might include:
• Costs of carrying out (market)
research
• Producing trial products
• (Cost of) raw
materials/labour/equipment
• Marketing/advertising costs
Other appropriate responses should
also be credited.
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

4 Outline two factors MTD should 4 To use words from the

consider when deciding on the stem as application, the
packaging for its new product. reference must be
appropriate (i.e. make
sense) in relation to the
Award 1 mark for each relevant
point being made.
factor (max 2).
The following words are
Award 1 mark for each relevant
likely to be appropriate
reference to this business (max
for this question:
2).
• Soap/cleaning
Points might include:
products or related
• Protection/security for product words
[k] so no leakage of soap
• Environmentally
[app]
friendly
• Carries / what information it
• Sustainable
needs to include about product
development
[k] such as it took 18 months
to develop [app] • 18 months to
develop
• Who selling to / attract target
market / customers [k] which • Pressure groups
can help decide the method of
• (Has to decide)
promotion [app]
method of
• Promotes brand image [k] promotion
such as that it is
Other appropriate
environmentally friendly
examples in context can
[app]
still be credited.
• Type/quality of materials to
use [k] to avoid action from
pressure groups [app]
• Ease of transport [k]
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

• Ease of storage/display [k]

• Whether/how easy it is to
use/open [k]
Other appropriate responses should
also be credited.
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

5 Do you think it is better for a 6 This is a general question

large business to produce a wide so there are no marks for
range of products than a small application.
range of products? Justify your
To gain both evaluation
answer.
marks response must
Award up to 2 marks for clearly relate to a large
identification of relevant points. business.
Award up to 2 marks for relevant
development of points.
Award 2 marks for a justified
decision as to whether producing a
wide range of products is likely to
be better for a large business.
Points might include:
• Attracts new customers / increase
sales / wider customer base [k]
increasing revenue [an] • Enhances
brand image/reputation [k] leading
to customer loyalty [an] • Spread
risk [k] as do not have to rely on
only one/few products to generate
sales [an] • May need high levels
of inventory [k] which can increase
variable costs [an] • May need more
storage space [k] which can
increase fixed costs [an] • May have
many competitors [k] so difficult to
manage / respond to actions of other
competitors [an] so may lose
customers to rivals / market share
(rather than gain) [an] • May have
limited / not enough production
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

capacity [k] so may have difficulty

in meeting demand for all its
products [an] • High cost of
research and development [k] which
increases cash outflows [an]
Other appropriate responses should
also be credited.
Justification might include:
Having a wide range of products
can help spread risk [k] as do not
have to rely on only one/few
products to generate sales [an].
However, a wide range may mean
it has many competitors [k] so so
may lose customers to other
businesses [an]. Therefore, while
having a wide range can help
increase revenue more easily than
having fewer products, it may only
be successful if the business is able
to manage a wide range of products
effectively to be able to sell them.
[eval] [eval]
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

6 Define ‘brand image’. 2

Award 2 marks for a full definition.

Award 1 mark for a partial

definition.
Identity/logo/unique name of a
product that distinguishes it from
other brands [2]
The general
impression/perception/reputation
of a product held by consumers [2]

Partial definition e.g. identity given

to a product (which gives it a
personality of its own) [1]
Something that distinguishes a
product from its competitors [1]
How the product is seen/perceived
by others [1] Other appropriate
responses should also be
credited.
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

7 Define ‘brand image’. 2

Award 2 marks for a full definition.

Award 1 mark for a partial

definition.
Unique name of a product that
distinguishes it from other products
or brands [2]
Partial definition e.g. something
that makes the product easy to
recognise [1]
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Question Answer Marks AO Element Notes Guidance

8 Do you think targeting new 6

markets is a better extension
strategy than new packaging for
a manufacturing business?
Justify your answer.
Award up to 2 marks for
identification of relevant issues.
Award up to 2 marks for relevant
development of points.
Award 2 marks for justified
decision as to whether targeting
new markets is a better extension
strategy for a business to use than
new packaging.
Points might include:
Target new markets:
• Widen customer base [k] can lead
to additional revenue [an] • Cost of
market research/promotion [k] will
add to expenses [an] • Different
tastes [k] • Lack of distribution
network [k] • Existing competition
in other markets [k]
New packaging:
• No guarantee packaging will
appeal to customers [k] so sales
revenue may continue to fall [an] •
Extra time and cost of development
new packaging [k] • Can help create
new interest [k]
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

Justification might include:

• Yes, targeting new markets may
be better as the business would not
have to risk losing existing
customers by changing the
packaging which could result in less
revenue to be able to pay for the
cost of any extension strategy
introduced. [eval] [eval]
Other appropriate responses should
also be credited.

9 Identify two stages of the product 2

life cycle.
Award 1 mark per stage.
Two from: • development •
introduction • growth • maturity •
decline
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

10 Identify and explain two 4 Application marks may

problems for LBM of having a be awarded for
wide range of products available appropriate use of the
to customers. following:
Knowledge [2 × 1] – award 1 mark • online retailer OR (no)
for each problem identified shops
Application [2 × 1] – award 1 mark • clothing OR examples
for each explanation in context
Points might include: • revenue increased OR
25% OR $600 m
• Lack expertise OR unable to focus
on single product OR less • customer service
specialised [k] which could damage
• induction training
customer service [app]
• 3500 OR new styles (a
• Increased warehouse space OR
week)
increased cost of storage [k] for the
new styles [app] • 18–35 years OR target
market
• Lots of competitors [k] as others
may focus on specific age groups • social media networks
between 18–35 [app]
• Additional cost of purchasing Do not award answers
items [k] related to production as
this is a retail business
• Increased risk of obsolescence [k]
especially as trends in clothing can Answers must be linked
change quickly [app] to the business and not
customers
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

11 Identify and explain one benefit 8

and one cost to MF of developing
the new product.
Knowledge [2 × 1] – award one
mark for each relevant benefit/cost

Analysis [2 × 1] – award one mark

for a relevant explanation for each
benefit/cost
Application [2 × 2] – award two
application marks for each
benefit/cost
Answers are likely to include:
Benefit:
• Provides a USP
• Allows diversification/spreads risk

• Allows the business to expand

into new markets/attracts new
customers/accommodates changing
customer needs
• Allows the business to expand
into existing markets/increases
market share/improved competitive
advantage
• Increase revenue/increased sales

Cost:
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

• Costs of carrying out market

research/product trials
• Increased production costs – new
equipment/training/recruitment
costs/high cost of raw
materials/high cost of waste
removal
• Increased marketing costs – to
build customer awareness
• If target market wrong, the
company reputation may be
damaged Indicative response:
Provides a USP (1) if there are no
other sugar-free ice creams in the
market (ap). This will allow MF to
increase sales revenue of the ice
cream (1). This is a new market and
MF is taking advantage of the
trends for healthier foods (ap).
Possible application marks:
Sugar free ice-cream; MF has a
large market share of the food
markets; large variety of food
products; objectives are growth and
increased market share; new
automated production line required;
new skilled workers need
recruiting; existing workers need to
be retrained.
There may be other examples in
context that have not been included
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

here.
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

12 Identify and explain one 6 Application marks may

advantage and one disadvantage be awarded for
to WSS of changing its brand appropriate use of the
image. following: References to
food such as soup, hot
Knowledge [2 × 1] : award one
drinks, curries and cakes,
mark for each relevant advantage/
ethical, logo, 10, extend
disadvantage identified
product range,
Application [2 ×1] : award 1 mark promotion, 40 shops,
if relevant reference made to this franchise, focus group.
business
Analysis [2 × 1] : award 1 mark for The focus of the answer
each relevant explanation must be the effect on
WSS.
Points might include:
Advantages
• Reflect new product range [k] as
now offering cakes and curries
[app] can help attract a wider target
market / range of people [an] •
Image might be out of date [k] as
soup bowl is simple design [app]
so need to change it to remain
competitive [an] • Customers like
something new [k] therefore they
are more likely to try [an] the
curries [app] • Attract new
customers [k]
Disadvantage
• Damage customer loyalty [k] as
existing customers do not like the
new logo created [an] • Customers
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

might not recognise the new logo

OR be confused [k] so might miss
the shop [app] therefore reducing
sales [an] • Time / cost (to change
the logo) [k] as may need to ask
focus group for their opinion [app]
increasing expenses [an]

13 What is meant by brand? 2 Do not award examples

as this does not explain
Clear understanding [2]: (unique)
the term
name, feature or design / logo or
image of a product or business [1]
that distinguishes it from other
products or businesses OR makes
it unique [1] OR unique or special
name by which a product or
business is known
Some understanding [1]: e.g. name
by which a product or business is
recognised OR known [1]
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

14 Identify and explain two 4 Application marks may

advantages to PCB of increasing be awarded for
the range of products it sells. appropriate use of the
following:
Knowledge [2×1]: award 1 mark
for each advantage identified Mobile phone,
Headphones, Luxury,
Application [2×1]: award 1 mark
Competitive market,
for each explanation in context
Fast-growing market,
Points might include: (Well known) brand.
• Spread risk [k] as sales do not rely
on its phone [app] • Increase
customers OR widen customer base
OR increase market share [k] as it
is a fast growing market [app] •
Able to increase prices [k] as it’s a
luxury product [app] • Increase
brand loyalty OR increase attraction
of business to existing customers
[k] as may want headphones [app]
• Improve PCB’s brand image OR
reputation [k] as offer more luxury
products [app] • Need to replace
products in decline (stage of life
cycle) [k] as operate in a
competitive market [app]
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Question Answer Marks AO Element Notes Guidance

15 Do you think TXE should sell a 6 Application marks may

wider range of products? Justify be awarded for
your answer. appropriate use of the
following:
Knowledge [1] – award 1 mark for
identification of relevant issue(s) food (retailer), 200 or 50
[max 1] shops, profit fell by 10%,
clothing, sales promotion
Application [1] – award 1 mark if
not successful, increased
relevant reference made to this
taxes, blames
business
competition
Analysis [2] – award up to 2 marks
for relevant development of point(s)

Evaluation [2] – justified decision

as whether TXE should sell a wider
range of products. Either viewpoint
is acceptable.
Relevant points might include: •
Broaden target market/ increased
sales [k] could help spread risk [an]
so less reliant on food [app] • Cost
of additional inventory [k] which
will increase variable costs [an] •
Space [k] as need to store / display
the new clothing [app] • Reaction
of competitors [k] could reduce
revenue [an] • Size of market [k] •
Lack of experience [k] as a food
retailer [app] so workers may need
training [an] increasing its costs
[an]
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Question Answer Marks AO Element Notes Guidance

16(a) Identify and explain two reasons 6 Application:

why packaging is important for
Sweets / candy, new
YOGO’s products.
business, business plan,
Knowledge [2 × 1] – award 1 mark
secondary data, people
for each relevant role
like sweets, niche market,
Application [2 × 1] – award 1 mark
adult, food product.
if relevant reference made to this
taste
business
Analysis [2 × 1] – award 1 mark for
each relevant explanation
Relevant points might include:
• List ingredients [k] as it’s a food
product [app] must state what it
contains to avoid legal action [an]
• Promotion / to attract customers
[k] to buy[an] from the new
business [app]
• Inform [k] customers about its
flavours [app] so people know what
is in its products [an]
• Protection / keep item fresh [k] so
the sweets are not damaged [app]
otherwise products might be wasted
[an]
• Boost brand image / impression
of high quality [k] as it is a niche
market [app] which can help
increase sales / revenue [an]
• Easier to store / transport [k]
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Question Answer Marks AO Element Notes Guidance

17 Explain two extension strategies 6 Do not accept general

that EDGE could use for product marketing methods such
Z. Recommend which of the two as lower prices, more
strategies it should choose. Justify advertising on own.
your answer. Application marks may
be awarded for
Knowledge [1] – award 1 mark for
appropriate use of the
identification of relevant
following: use of
strategy/point(s).
numbers, phones,
Application [1] – award 1 mark if customer loyalty,
relevant reference made to EDGE’s competitive market,
business. technology. Evaluation
marks cannot be
Analysis [2] – award up to 2 marks rewarded if only one
for relevant development of extension strategy
point(s). identified.
Evaluation [2] – justified decision
made as to which option it should
choose.
Relevant points might include:
• Introduce new features/new
versions [k] • Look for new target
markets [k] • Rebrand [k] to appeal
to new market segments [an] •
Re-packaging [k] • Create new uses
[k].
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

18 Identify and explain two 6 Application marks may

advantages to EDGE of be awarded for
developing new products. appropriate use of the
following: relevant
Knowledge [2 × 1] – award 1 mark
numbers, phones
for each relevant point identified
(features of a phone]
[max 2].
price inelastic, customer
Application [2 × 1] – award 1 mark loyalty, competitive
if relevant reference made to market, product X, Y, Z
EDGE’s business. or T, technology. Note:
Advantages must clearly
Analysis [2 × 1] – award 1 mark for be to the business, not the
each relevant explanation. consumer.
Relevant points might include:
• Boost sales [k] as existing
customers would buy a new phone
[an] [app] • Increase market share
[k] by attracting customers away
from competitor [an] as this is a
competitive market [app] • Able to
increase prices [k] as new technical
features [app] can lead to greater
customer interest [an] • Create
additional consumer interest [k] as
better range/more up-to-date
products available [an] • Improve
E’s standing/profile in market [k]
as seen as able to respond to market
change [an] which can help
maintain consumer loyalty [app] •
Spreading the risk [k] so if product
Z doesn’t sell [app] others can help
make up the shortfall in sales [an]
• Need to replace old products [k]
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

as Z is at end of product life cycle

[app] this could help business
survival [an] • Keep up to date with
competitors [k].
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

19 Identify and explain two factors 6

that Ramford should consider in
deciding which products to
remove from its product range.

Knowledge [2 × 1] – identification
of relevant factor [max 2]
Application [2 × 1] – award 1 mark
for each way if relevant reference
made to this business
Analysis [2 × 1] – award 1 mark for
each relevant explanation
Relevant points might include:
• Stage in product life cycle [k] if
some foods are in decline [app] few
people are likely to be buying them
anyway [an] • Availability of
substitutes/competition [k] if many
breakfast cereals [app] so might not
be cost effective to keep making it
[an] • Cost of producing each
product [k] as worried about
financial performance [app] might
want to stop making expensive
items [an] • Current level of
sales/popularity/demand [k] as
profits falling [app] need to remove
the least popular lines [an] • Not
suit current season [k]
Application marks may be awarded
for appropriate use of the following:
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

calculations/use of numbers, food,

cereal, ice cream, factories, 80 to
10 products, reduce profit, financial
performance.

20 Identify two reasons why 2

packaging might be important for
the new computer game.
Application [2 × 1] – award 1 mark
for each relevant reason
Points could include:
• (Method of) advertising/attract
customer attention • (Promote or
reinforce) brand
image/recognition/differentiation •
Legal requirement • Information
about the product •
Protection/storage • Ease of display
• Ease of transport

21 What is meant by a ‘brand’? 2

Clear Understanding [2]: (unique)
name, feature or design / logo or
image of a product or business [1]
that distinguishes it from other
products or businesses [1]
Some Understanding [1]: e.g.
something which makes a product
‘stand out’ [1]
Do not accept examples
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

22 Identity and explain two reasons 6

why packaging might be
important for HPT.
Knowledge [2 × 1] – award 1 mark
for each relevant reason
Application [2 × 1] – award 1 mark
for each relevant reference to HPT

Analysis [2 × 1] – award 1 mark for

each relevant explanation
For each reason maximum 3 marks
[1k + 1app + 1an].
Relevant points might include:
• Protection [k] as (frozen) food
could be easily damaged / perish
[app] • Inform [k] could include
nutritional information on labels or
how to cook the food [app] •
Promotion [k] attractive wrappings
could encourage people to buy the
food to taste [app] • Style or colour
of packaging could help boost
brand image [k] as it could help
products stand out on the shelves
[app] • Easier to store [k].
Note: Do not accept HPT/Frozen
food alone as application.
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

23 Identify two possible reasons why 2

cameras might have a short
product life cycle.
Application [2 × 1]: 1 mark per
reason.
Reasons include:
Actions of competitors,
fashion/changing tastes, availability
of new technology, availability of
substitutes (e.g. phones with camera
features).
Do not accept ‘low sales’ on own
as too vague.
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

24 Identify and explain two possible 6

extension strategies that SENG
could use for one of its types of
camera. Knowledge [2 × 1] –
award 1 mark for each relevant
strategy identified.
Application [2 × 1] – award 1 mark
if relevant reference made to
SENG’s business/cameras.
Analysis [2 × 1] – award 1 mark for
each relevant explanation.
For each reason: maximum 3 marks
[1k + 1ap + 1an].
Relevant points might include:
• Add new features/version •
Change colour of camera to suit
popular tastes • Update image with
new packaging • Target new
markets or market segments Accept
practical examples.
Do not accept general marketing
strategies such as advertising or
lower prices on own OR new
products.
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

25 I dentify two reasons why good 2

customer service is important for
Keypeople.
Application [2 × 1] - award 1 mark
per reason
Reasons might include: customer
feels valued / good public relations
/ creates higher level of customer
satisfaction / leads to repeat
business (brand loyalty) / can lead
to word of mouth
recommendations/ motivation of
workers/brand image.

[Total: 106]