(b) Consider the following three methods of market research Simon used. Which do you think is the best method to use when deciding which product to produce? Juslfy your answer. Online questionnaire ‘Accessing government population data + Focus group Online questionnaire: Accessing government population data: Conclusion: .. (12) ‘may/june2020 pa per ov unit 3 Scanned with CamScanner0450721 Cambridge GCSE ~ Mark Scheme ‘MaylJune 2020 PUBLISHED | Quostion | Answor | Marks 2(d) | Consider the following three mothods of market research Simon usod. Which do you think Is the bost mothod to use when deciding which | | product to produce? Justify your answor. Ontino quostionnalro Accessing government population data Focus group Level | Description Marks | Sound application of knowledge and understanding of | relevant business concepts using appropriate | terminoiogy. | Detalled discussion of two or more methods of market | | research, | 9-12 | Wellustified conclusion. Candidates discussing the three methods in detail, In | context and with well Justified conclusion incuding why | the alternative methods were rejected should be rewarded with the top marks In the band, | Sound application of knowledge and understanding of | televant business concepts using appropriate terminology. | Detailed discussion of at least one method. { Judgement with some jusiifcation/some evaluation of | choice made. | Candidates discussing two or more methods indetailand | @pplying it to the case should be rewarded with the top | marks in the band. | Limited application of knowledge and understanding of | Felevant business concep, | Limited abllity to discuss the methods of market research | | wit titiino explanation 1 | Simple judgement with limited justitcationtimited 1 | evaluation of choice made. | Candidates outlining the three methods of market | research in contextshou'd be rewarced with the top marks | | inthe band, ‘ 0 | Nocrecitable response. fo may/june 2020 paper 21 ‘OUCLES 2020 aye unit 3 part 1 Scanned with CamScannercaso Cambridge IGCSE ~ Mark Scheme May!June 2020 PUBLISHED Question Answor Marks 2(b) | Relevant points might include: + Fasterwith quickerreplies than other forms of | survey + Cheaper to collect quantitative data about | customer purchases of drinks than interviews Onine | + Can collate results about customer consumption questionnae of healthy drinks saving Simon time |+ But with no interviewer questions may notbe understood and answers less valid May not gain a wide range of views if people do | not have the internet + Quicker to collect than primary sources | | + Gives an idea of age groups in the local areaand | | total size of the market for fruit drinks Accessing. But this does tell Simon which frult Julcos government population data- |, People willike May be out of date + Data is available to all drink’s businessos |___ Including competitors | Qualitative data so opinions on diferent frosh frult, drinks canbe gathered Questions canbe explained soopinions on which fruits to Include in drinks is more reliable ‘Quicker and cheaper than individual interviews Primary research is up to date and relevant But expensive and time consuming to collect Discussion could be biased if some of panel ‘members have strong opinions on which fruits to Include in drinks | |= Mopinions are required, then focus group or | online questionnaire may be better a8 gain this data directly from potential customers. Also,ifthe | bbudgetfor market research is high then a focus | group will gather more qualitative cata that may be | Moreusetulin developing the most successful | | new fruit drinks, + ony data onthe total market is requted, nen accessing government population data might be best as itis cheap to collect and readily available giving details of the total size of the market for fruit drinks. it also does not take much time to collect unike a focus group that wllneedtobe set | up, participants selected and invited to attend. | Then the focus group will need tobe led by on experienced matkel researcher orthe data may be less accurate. An online questionnaire will still | also need to have a suitable sample of | fespondents for it to be useful. | | | | | | | | —_— | Justification might include: | | | 1 i | | | | | | | | eva.essnn may/june 2020 paper 21 unit3 part 2 o4s0r21 Cambridge IGCSE ~ Mark Scheme ‘May/June 2020 PLIBIISHEN, Scanned with CamScanner(b) ES has been considering the following three mothods of promotion for Its products in export markets. Which method should ES choose? Justify your answer. + Advertise on national television ‘Advertise on ES website + Display its products in shopping malls Advertise on national television’... Advertise on ES website: Display Its products in shopping malls. Recommendation: -rnayjjune2020 paper 22° unit 3 Scanned with CamScanner0450722 ‘Cambridge IGCSE - Mark Scheme May/June 2020 PUBLISHED. Question | Answor Marks: 2()__| ES has been considering tho following throa methods of promotion for 12 | Its products in oxport markets. Which method should ES choose? | Justity your answor. [+ Advertise on national television |+ Advertise on ES website | + Display its products in shopping malls | Level | Description Marks ‘Sound application of knowledge and understanding of | relevant business concepts using appropriate terminology. ES‘products 3 912 Weltjustiied recommendation. i Candidates discussing the three methods in detail. ia context and with well-justfied recommendation induding Why the altemative methods were rejected should be rewarded with the top marks in the band. | | Detailed discussion of two or more methods to promote | | __[Fevoedwanietopmancinte bar it ‘Sound application of knowledge and understanding of { relevant business concepts using appropriate iets eer Detailed discussion of atleast ono method. Judgement with some justification/some evaluation of || 58 choice made. | | | Candidates discussing two or more methods in detail | and applying it to the case should be rewarded with the | top marks in the band. \ Limited application of knowledge and understanding of relevant business concepts. | Limited ability 10 discuss the methods to promote the | products wits tteino explanation. Simple judgement with limited justiicationtimited se evaluation of choice made. products in context should be rewarded with the top ‘marks in the band, | Candidates outlining the three methods to promote the t r | | 0 | No credtable response. ‘ May/june2020 paper 22° — unit3part 1 Scanned with CamScanner< S®@Q: Question ‘Answer Marke ‘+ Advert for scooters wil go cut to miions of people | + Seootors can be shown in very favourable way | + Camreach a target audienco for scooters | ‘Shown during programmes ely tobe watched | i“ by those target customers e.. sports ional television | Perma + Very expensive form of advertising + Younger consumers may not watch as much TV as oder people so may not each these consumers | Advertise on| | 210) | Retovant points might inde / | | | | | | “Large amount of information can be posted | a econ aes + Can include videos of the scooters: | Advertise on ES | + Intemet searches may not highlight the website | | \ eon See eee || | anes «ett zs may ended n sone aires ping tri | | | | | Provides alt of information Display ts + Canalso be persuasive with scooter to look at | products in and siton | Shopping malls |* Restricted oa elavely small number of ‘consumers inthe mall Justification might incude: 2 National TV as the scooters wal be seen by he ‘mass market and will notbe seen by many ‘people in shopping mall dispays. + Website uset fr advertsing when otter forms. ‘of advertising have raised avareness ofthe scooters suchas ater the scooter Nas been ‘een in amall display. |+ Displays inshopping mali wil be mostusefulas | | |" potential customers can sit on the scooters and ‘See how comfortable thoy ae. This may make | | people who have not even thought about buying a ‘ooole: consider them whereas adverisements in || television and on websites may be ignored. ~ may/june2020 paper BoP - unit 3 part 2 counesamz0 pagent @ Recommendation é Scanned with CamScanner1018 GSO > @ O@ Ait ll 84% mM < S@® Q@ 7:03 BLM Oe ull 93% may/june2020 paper 23 unit’3 () Consiee now te folowing two changes inthe market are tely to atect EC: + Change m customer spending patems away fiom dese cast lect ers + Maries fo etl and eset eas are bacoing more competitive (Which change is ely to have the moat eect on Cs prot? Just your answer. {change in customer spending patems away rom desel cars to elect cars: kets for eto nd diesel cars ae bocoing more compete! Scanned with CamScanner0:18 666° @ 08 Fit ul 84%m < S®Q: oxsoza mayhjune2020, paper 23 sneans ____unit'3'part 1 veston ane tans | -2(d} Consider how the following two changes In tho markot are likoly to 12) siect Ec: "+ Chango in customer epending patorns away from dose ears to | rie eae teed ing tage Sst Smee |euetee oes arte the > | tet emanc | || | cannes casing tm angen det. | | context and with well-ustiied conclusion including why ||| Sesibenttesgt meee sae | |__| reneced wan te op mais nthe Doe, | Scund appieaton ofknoatedge ana unerstandrg of | tetevant business concepts using appropiate _ eno. | Detaied sscusson of test one change. | Judgement wih some jsticatonsome evaluation of | Shoe mode, | Canciates scusing bh changes in dell and || applying itt me case shouldbe renarde wah the top | | mars inthe band i SRE a een eareeeeneerresrre aaa Umted appleaton of rawiedge and understanding of “elevart business ecepts | Limes aby io ascus the changes with tino | explanation. | : | | simple judgement ited usteatontinted | | { 1 _ealiatonat chee made | | Candidates cutning bom changes in cotet should be |__rewaraed win ne tp mars inthe band. ceucues0 Pore Hy Scanned with CamScanner1018 GGG @ swseuiscen & SOO: casos may/june2020.papel23 a neane unit'3 part 2 ne iron ia amet meas si - + More invesment needed in elect cars ~ and the governments proving pans dats + Fewer deselears produces Preduction wil need chang and more | crange in Investment 200m) roqured | Soares + Mayreedo change supierscear away tom diesel | | components le + Poss higher costs of production cae CO | Low prot tay unhappy shaved 2 Hfdentchange production elect cas, hen wilose mano share a5 consumers want 0 buy produets that donot haem tho ‘environment Markets fr petal |» Needo heap costs down toremain anddasetcars |” competine stetecomng | Could focus en cheaper quaty use choopar more competive |" imported components ~but may be over guatty 1+ May ose reputaton {Tatts on imported cars may make teasirto compete for EC ‘Conciusion | sustain might incude + Depenes onthe demand for let cars. and the pce consumers ae wing 0 pay. ving to poy higher pes er elect eas that donot ‘ham tho enlronmert, hen revenue and prot may bengher. 1+ Reduce producton of iesel cars as demands {alin tut could concentrate on patra cas to {eta market ere even hough 5 wil be Citta several naw ear companies otered tho market, Pie of pevotcars may ave tobe {edaced toe mare share ands may ead {o prot tating. evacs200 ~ Scanned with CamScanner, W138 GGG @ OB Ait ll 84%em < S®@ 7:27 BOB: OG Sill 90% vais aise ene March2020 paper 22 unit3 12 (a) Explain wo reasons why Bod used sampling when caring cuta questonnae. Reason planation: esas’ Reason 2: Eoplanaten a) Scanned with CamScanner—NN @ © s Question Answor 2a) _ | Explain two reasons why Bob used sampling whon carrying out a ‘quostionnaire. ‘Award one mark for each relevant reason (maximum of two reasons). Relevant reasons might include: + To reduce the time taken to carry out the questionnaire — takes alot of {ime to ask the whole population ~ sampling means reduced number of questionnaires have o be collated and analysed + To reduce the cost of caying out the questionnaire - reduced number of questionnaires printed ~ reduced postagertime taken by staff to carry cut questionnaire | ‘+ More accurate or relevant information — as potential customers can be | targetted ~ so answers only relate to potential customers and results ne ol ntvenced by ners fom people notinterstedin he service | | | ‘Award a maximum of tree addtional marks foreach explanation ~ ono of ‘Which must bo applied to this context -of the reasons for using sampling ‘when carying out a questionnaire. For example To reduce costs forthe business (1) because if the whole Population is asked about cleaning windows this wil be vty expensive {App) therefore choosing a small number of people wil be less expensive | ((). Tis ig important fora small bushess which wil have eter cost 0 pay (. | | Appleton coud inclu: window Gearing business window washing | service: busy home owners; eeasing incomes for poten customers; | only has a few regular customers atthe moment; need to decide the best ‘ways to promote the busines: confim thre is a high demanc for these senices, march 2020 paper 22 unit 3 uss 2020 Page so 1S Scanned with CamScannerW:19 GOS + < S®ea . 2 marchi2020 paper 2 unit 3 (0) Explain efotonng three methods proton 6H cou use Which mab thus cb ‘16? July your ane, Lets 2 Aavetsein toa newspaper * Seciaimeda Lea aan ODE Ga <8 Scanned with CamScanner| Question Answor Marks | 2(b) | Explain tho following throe mothods of promotion BW could uso. 12 } Which mothod should Bob uso? Justify your answer. + Loaflots | + Advortiso in local newspaper + Social media Level | Description Marks | | 3 | Sound application of knowledge and understanding 9-12 | {| of relevant business concepts using appropriate | terminology. | Detailed discussion of al least two methods. Well-justified recommendation. | Candidates discussing the three methods in detail, in | Context and with well-justified recommendation { including why the alternative methods were rejected | should be rewarded with the top marks in the band. 2 | Sound application of knowledge and understanding 5-8 | of relevant business concepts using appropriate | terminology. Detailed discussion of at least one method. Judgement with some justification/some evaluation of choice made. - Candidates discussing two methods or more in detail and applying it to the case should be rewarded with the top marks in the band. 1 | Limited application of knowledge and understanding 4 of relevant business concepts. | Limited ability to discuss the methods with little/no | ‘explanation. | Simple judgement with limited justificatiovtimited evaluation of choice made. Candidates outlining the three methods in context should be rewarded with the top marks in the band. 0 | No Creditable Response 0 march2020 paper 22 unit 3 _1 ‘ouctes 2020 Paget ct 15, Scanned with CamScanner| question | | | | | | { 2(b) Relevant points mig! | Advertisements | ht Answor lude: ie i | Cheap method of advertising — low printing costs | Handed out in the streets to a wide range of people and can be delivered to households and offices where windows may require cleaning ~ giving a wide distribution to potential customers Could contain promotion, e.g. discount off first windows cloanod — increases the likelinood of attracting customers Can be kept for later use — provides reminder of contact details for customers ~ more likely to use the window cloaning businoss in the future However, homo ownors may not read the leaflets and just throw them away — waste of money and ineffective Will reach the target market of home owners In | the local area — targeted advertising Relatively cheap to place advertisements compared to national advertising - reduces advertising costs as only targeting local homo ‘ownors/too expensive for a now businoss. Information/discount coupons can be cut out and kept for later use — reminds potential customers of contact details for the cleaning sorvico Alotoof information about cleaning sorvicos | can be included in the advertisement = may encourage more customers if persuaded by the additional information However, only black and white so may not be as | attractive - not eye-catching Many younger households do not read newspapers and so may not see the advertising | {| | | | | | | | i | i | | | i | | | | | | | Marks Scanned with CamScanner0450/22 Cambridge IGCSE - Mark Scheme March 2020 PUBLISHED | Quostion | Answor Marks 2\b) || Social Media | «Can be free with no cost ~ unless paid for | advertising — seen by many younger consumers | | although may not be home ownors | [+ Reputation of the cloaning businoss helps | | encourage new customers = spread quickly as | | | easier to share i |» Allows video and audio to be added ~ makes the | | advertisement more attractive - may be more | | likely to persuade customers to have their | | windows cleaned | | ¢ Advertising can be carried out across the local | | area and not national area ~ so mare targeted | on potential customers | | 6 However, limited number of family and friends of | | © the small numbor of curront regular | | customers - restricting sales | | + Customers may not rust posts on social media | — may think they are fake | * As tho business Is now then it will needto | keep marketing costs low and therefore leaflets | might be the best method to use as they are low | | cost. They can be put through the doors of | | prospective customers and may be more | | effective n directly targeting these customers. | These customers may not read local | | Newspapers and social media may not reach ; them, | | | | Recommendation | Justification might include: i | | | | | | + Advertising in local newspapers is likely to reach the targot markot in the local aroa as tho businoss Is a sorvico and Is only almod at tho local population. Social media may be less effective as it will reach a wide range of people who may not all live locally to BW. + Social media is the cheapest of the three methods and can easily be seen by many homo | ownors, This will be especially effective if tt | regular customers put favourable posts about an BW cloaning servicos. This will not need BW to | i | | | doanything or spend money printing leaflets or z | | | paying for advertising, march2020 paper 22 unit3-3 Scanned with CamScannereucies a0 on otso22 2020.81 march 2020 paper 22 ° unit 3 (6) Consider the following throe options for BW. Which option should Bob choose to Improve W's reputation? Jusiy your answer. |: Use cleaning products that contain chemicals Ise bottles hat can be refiled with cleaning products : Purchase a new window washing machine euctes 200 ox.o4so 222020111 Scanned with CamScanneroe | Sea: predicted and therefore more likely to gain a bank loan 4(b) | Considor the following three options for BW. Which option should Bob 2 choose to Improve BW’s reputation? Justify your answor. Option 4: Uso cloaning products that contain chemicals. Option 2: Uso bottlos that can be rofilled with cleaning products. Option 3: Purchaso a now window washing machino. Level | Description Marks 3 | Sound application of knowledge and understanding | 9-12 of relevant business concepts using appropriate terminology. Detailed discussion of two or more options. Wellustified recommendation. Candidates discussing all three options in detall, in context and with well justified recommendation including why the alternative options were rejected should be rewarded with the top marks in the band. 2 _| Sound application of knowledge and understanding 5-8 of relevant business concepts using appropriate terminology. ; Detailed discussion of at least one option, Judgement with some justification/some evaluation of choice made. Candidates discussing two or more options in detail e and applying it to the case should be rewarded with ~_| the top marks in the band. ~ march2020 paper22 unit3-1, cues 2020 045022 Cambridge IGCSE — Mark Scheme March 2020 pNBIcHEN, Scanned with CamScannerRete pots mg neo: Onto t + Fostoria clean windows = more iseaares efcentnrrved eustone satstcton sec + Mor aticen by 80 percent using hase svocvet that hemals somere mncous washed fe Nut = contain chemicals | possity increasing peott 1+ However, bad teputaton from using chemicals ‘snot envtcamentaly teensy and prossure [Groups may campaign agains them — athough eqn atthe moment, the lw may change nthe future 80 may have to change later anyway ‘Option 2 |+Slighty higher vanspon cost of aking the | containers tobe refed as would need more Use totes that_| than one but may be the cleaning products are can ereied cheaper fuse own tote with Gearing «Good reputation fem being ethical as previously products |___ they may have usea plastic bottles which were ‘ot enwronmentalytensy + Time taten by employees to get containers fefiled - reduces etferency | + Costto buy bottes may nerease costs |” iiatyishot run = but ower costs Inthe long |___tunas they go not need 1 heep being replnced ‘Option 3 | High cost of purchase ~ $1000 —aiticut to raise | fmance aa new business Purchase anew | Ethical and may encourage moce customers in ‘window washing" the local area wih Inereasing Income Use machine Bw + Reduces the amount of water required to clean | windows = may save money ‘Improved reputation withthe local community = 1s they may benefit Fam less wastage of waler the machine recycios tho water march2020 paper22 teas: unit3-2 casoze Cambige 6088 Monk Schone vo 260 eases Toston Waa tats x) Recommendation | .ustfcation may include: ‘+ Chaose Option tas although costs may be sSighty rigner the Increased eliciency and ‘loaning more windows por hour inereases teputation for a fast service. Customers may not ‘know about tne now mache or bottes being teliled and therelore this may not Inprove BW's reputation. + Choose Option 2 as plastic bottles would not ‘need to gd 10 waste and this can be a USP in ‘Bdverising other wiedow washing businesses | onatuse mese, nence improving BW's feputation iis aiso alot cheaper than paying $1000 for @ new mactine + Choose Option 3s t may be better inthe long term as waters important and BW wil nt be ‘wasting ft a'so means that BW can wash ‘windows without faving fo gan water from the house ithe owners are out. This may increase ‘efficiency and improve the reputation for being ‘careful wth the searee resoute of water. Bs Teputaton wil not be enhanced as much fit ‘elit bots, as vs may not be notices by ‘eustorers and they may not be aware ofthe chemicals being used, —EEE a Scanned with CamScanner(&) Consider the advantages and disadvantages ofthe following throe sales promation method ‘Gemma could use forthe new shop. Recommend which method Gemma should choose to maximise revenue. Justily your answer. + | Buy one, get 50% off second purchase 10% off everything in the shop for one week after opening + Pay acelebrity to open the shop Buy one, get 50% off second purchase:. Pay a celebrity to open the shop: oct/fov.2020 paper21°-—" unit-3 Scanned with CamScannerS50 BOG « OG Fit ull 95% B Pustisney uu ‘Answor 30) | Consider tho advantages and disadvantages of tho following throg promotion mothods Gomma could use for tho now shop. Rocommond | ‘Which mathod Gemma should choose to maximise revenuo, Justify your | answor, | + Buy ono, got 60% off socond purchaso + 40% off evorything In the shop for one wook after oponing + Pay acolobrity to opon the shop Level | Description Marks | 2 | Soma ppicaten ot naviedg and underandng ot — | 0-12 | ‘rant uses conc vane appropiate moon. Detaled discussion of the two or more methods of sales ‘promotion. Wellustiied recommendation. Candidates discussing all three methods in detail, In Context and with weljustified recommendation including ‘why the aleriative methods were rejected should be rewarded with the top marks in the band. relevant business concepts using appropriate terminology. Detalled iscussion of atleast one method. i Judgement wit some Justiication/some evaluation of ‘choice made, Candidates discussing two or more methods in deta and ‘applying it to the case should be rewarded with the top marks inthe band. | | | | | | | | | 2. | Soune application of knowtedge and understanding ot | 5-8 | | | | | 7 | Umited application of krowedge end understanding of | 1-# | ‘eleva business concepts | Limited byt seuss the methods wih itn explanation ‘Simple judgement with limited justificatonvimited | ‘evaluation of choice made. ‘Candidates outlining ll three methods In context should be rewarded with the top marks in the band. No creditable response, oct/nov2020 paper21 sun unit3~1 Scanned with CamScannerQuestion ‘Answor Marks 340) | Relevant points might include: Buy one get 50% | Encourages customers to buy more Jewellery - off second |” ore sates to gain the second item at 50% purehese | rection [+ Butthis wit reduce the ross prot on the second item of Jowallory ~lower prot overal | + Customers may perceive tis a lower quality Jovellory 10% off + Encourages sales On lites of jowolory as evening inthe |” reducton on alters shopforone |» Less eect on gross prott than the 50% of (whieh week after | ‘wl effectively be 25% reduction on each item) i | opening ‘+ However, slightly ess gross profit on each item but this wil also mean fess gross profit pald to the franchisor Pay celebrity © |» Many people may visit the shop to meet the | open ne shop celebrity = Increasing sales while people are in the shop i + Gains full gross profit on each item as opposed to the two alternative optior ‘+ ifcustomers lke the Jowellary then may visit the shop again later and sales may continue to Increase + Increased cost of paying the celebrity to visit the shop which can be very expensive ‘+ Improved the Image of the shop ~ as the shop may be associated with the celebrity andthe hoxury nature of Gis jewellery oct/nov2020 paper21 unit3 part-2 Scanned with CamScannero4soi21 ‘Cambridge IGCSE ~ Mark Scheme ‘October!Novembe PUBLISHED 2021 | Question Answor Marks 3(b) | Recommendation | Justification might include: + Revenue is likely to increase In all three options. However, buy one get 50% off second purchase of Jowollory will attract customers to the make more than one purchase leading to the highest increase in revenue. The second option may only gain a ‘small increase in revenue because a 10% ‘eduction in price is a small discount and may not encourage much more than a 10% increase in sales. Although the celebrity may attract customers to the shop its a one day promotion and will oly increase sales and revenue for one day. = © Aprice reduction of 10% may be the most effective : in maximising revenue by encouraging increased i : sales of all ters of jowllory. The loss in revenue i from the price reduction of 10% could then be | more than compensated for assuming a higher | than 10% increase in the number of Jowollory | sales, | + Paying a celebrity may increase revenue the most because many people will be made aware of the shop and be altracted to its opening. Many of these people may then make purchases of Jowollery when at the now shop which would not ‘otherwise have been made, therefore Increasing | revenue by the highest amount, feo | oct/nov2020 paper21 unit3-3 Scanned with CamScanner—— a aT oct/nov.2020 paper2z ’ unit -3 {b) Consider the following throo elements of a suitable marketing mix for CC's new range of personalised mobile phone covers. Justify which element is the most Important. + Pricing method ‘+ Method of promotion + Place - distribution channel Pricing method: Place - distribution channel: Conclusion... . (12) evctes 2020 1_046o_22,2020.1.10 [Turn over Scanned with CamScannerusoae Combidge GCSE — Hak Scheme ctbeioverser PupLisneo ‘000 ‘Question ‘wer Marke {x0) | Consider the folowing tag elements of autable markatngmixfor | 12| ‘GC's now rango of personalised moblla phono covers. Justify which | ‘olomont Is the most important. + Prllng method | 1 Matto promotion be + Place = dlstibution channot | eve | Descton wos | 3. | Sound application of knowledge and understanding of 9-12 || relevant business concepts using appropriate terminology. | Detailed ciscussion of two or more elements. ‘Welljustfied conclusion of the most important element of | the marketing mix Candidates discussing three olements of the marketing ‘icin deal, in context and with welljustfied conclusion, inclucing why the atemative elements were rejected, should be rewarded with the top marks in the band. | 2 {Sound application of knowledge and understanding of | 5-8 ‘relevant business concepts using appropriate terminology. / Detaled discussion of at east ono element ofthe |: | marketing mix. | Judgement with some justiication'some evaluation of | choices made. | Candidates eiscussing two or more elements of the | marketing mix in detall and applying them fo the case | should be rewarded withthe fop marks inthe bard. 1 | Limited application of knowledge and understanding of 4 | relevantbusiness concent. | ited ayo discus the eames of te mareng mix | itor ertarton, | Simple judgement wit ited justiicatontinited | evaluation of choices made. Candidates outining three elements of the marketing mix incon sould be evaréed win te op marsin ihe 0 | No redtaie responce | lL oct/nov2020 paper22 ‘eucies 2009 Poathoe unit 3-1 Scanned with CamScanner= YF VY WG rususney aw Question Answor Marks 30) | Retevant points might incude: Price ‘Identifies and justites a sultable pricing method fr new Bone covers aimed at high came 18-25 yea ls Price skimming as i's a new product with fow ‘compotitors atthe introductory stage ofthe product ie ‘ycle ~ 30 can charge a high price as high Income customers wiling to pay to own one fist ‘+ Costplus pricing fo make sure a profit is made on the new cover ‘+ Compettve pricing could be used as there are fow compotitors In this market at prosont ‘+ Penetration pricing to enter a new target market of 18-25 yoar olds Promotion | Identies and justifies a sulable promotional method for new ‘phone covers aimed at high income 18-25 year olds *+ Advertise in specific magazines read by young people - ‘lcho market almed at young people ‘+ Targets young poopie agod 18-26 ~ advertising on ‘social media may go viral and low marketing costs - CC isa small business so needs to keep doum the ‘marketing costs ‘+ Sutable examples of promotional methods used for targeting high income 18-25 year olds ~e9, discounting ‘denies and justifies a sultable cistibution channel for new phone covers aimed at high income 18-25 year olds ‘+ Sold online ~ easily accessible by young people aged 18-25 ~ used to ordering online - download an app to ‘order dtect from CC ~ as young people may not use ‘main retail outlets ‘+ Shopping malis are used by target market of higher Income young pooplo ++ Direct distribution increases delivery costs - but CC keeps profit margin of etal outlets ‘Conclusion | Justficaion ofthe most important element may include: ' Ifthe pricing method is wrong, then the target market wl ‘ot be interested in the new product even fits promoted effectively and sold using the most sutable distribution channel for young people aged 18-25 so price Is most Important. ‘+ _ Promotion is most important as if people are not aware of ‘the covers then even if the price and place ae suitable high Income consumers wil not buy he new covers ‘+ Place has tobe suitable because even if consumers are altracted to buying the mobile phone covers wit the right price and promotions to attract them, these high Income consumers cannot easily find where to buy the covers they will not sell wel cvacswe 9Ct/nov.2020 paper22 unit3-2 Scanned with CamScanner< S®e@ hay oct/nov2020 paper23 * unit-3 1° tain on ingen ene detenag AD wg ei Advantage: Scanned with CamScanner< B@®eaQ: o4s0r23 Cambridge IGCSE ~ Mark Scheme Octovertovember PUBLISHED 2020 Question ‘Answor Marks 4) | Explain one advantag market. 1nd one disadvantage to AD of selling to a niche 8 ‘Award 1/mark for each relevant advantageld'sadvantage (maximum of two}. Relevant advantages might include: + Meets the specie needs of customers - more satisfied customers ~ increases demand + Higher custome loyalty and good customer relations ‘+ Esslet for relatively small business to remain compettve in the overall global market | + Able to charge a higher price Relevant disadvantages might include: + Oyeral size ofthe marke s relatively small~ limit to growth ‘+ Specialise in a narrow range of products - more vulnerable tothe effects ‘of changes in demandechnotogical change ~ losing sales and market = higher risk of failure 2s a result of changes in the market ‘Award 2 maximum of 3 adétional marks for each explanation — one of which ‘must be applied to this contort. For example: ‘A disadvantage might be that it specialises in a narrow range of products ‘only selling its produets in country Z (1). farmers change the type of crops. ‘grown in country 2 (app) then AD could fnd it has a large fll in demand for its equipment (1) and it might be at risk of faiureift cannot sell to ther export markets. (1) Application could include: agricultural equipment; tractors; diggers: ploughs; sold through specialist agricultural shops; farmers; want to expand output by 30%; good quality products. oct/nov2020 paper23 unit-3 Scanned with CamScanner