3. Marketing (AS Level)
A section of Business Studies, 9609
Listing 10 of 93 questions
Fuzz Buzz Ltd (FBL) FBL is a small private limited company with 10 shareholders. Its unique selling point is that its toys are handmade. They are aimed at children aged 4 to 10. Its latest product, a hand-held soft spinning toy, called Tommy Turner, has become a fashion item amongst young children. Demand for these toys exceeds the ability of FBL to supply them. Stores are desperate to secure more inventory in order to make the most of the high demand. FBL sells these toys for $6 each. It is considering how to respond to the excess demand. If FBL increases the price of the Tommy Turner then the price elasticity of demand is estimated to be –2. The quantity demanded at the current price is 120 000. If FBL increases the supply of Tommy Turners it would require investment. The new machinery would cost $100 000 and allow mass customisation. The concern is that this fashion may not last. The work will be a lot less skilled, although a design team will still be required to develop future toys. FBL’s employees take great pride in their work and are very loyal to the company and their co-workers. Most of the employees have been with the company for over 10 years and enjoy good relationships with all the directors. Anindita, the Marketing Director, thinks FBL should make the most of the fashion for the Tommy Turner by extending the product life cycle. Define the term ‘unique selling point’ (line 1). Explain the term ‘mass customisation’ (line 10). Calculate the new quantity demanded of the Tommy Turner if FBL increases the price by 10%. Explain one factor influencing the supply of the Tommy Turner. Analyse two methods FBL could use to extend the product life cycle of the Tommy Turner. Discuss the likely impact on the morale and welfare of FBL’s employees if supply of the Tommy Turner is increased.
9609_s19_qp_23
THEORY
2019
Paper 2, Variant 3
View
Post Scent (PS) PS is a private limited company operating in country H. It sells perfume for men and women using its own website. PS purchases the perfume in large quantities from various manufacturers and then sells it in smaller quantities to its customers. Most of the perfumes are sold in glass bottles. PS has two main ways in which it sells perfume: • A website where customers can purchase a range of perfumes. The perfumes are priced to be lower than high street competitors. • A subscription service where customers pay a monthly fee for a mystery perfume to be delivered each month. All of PS’s products are delivered to customers’ homes using the postal service. The packages can be left in a mailbox or in a safe place outside of the home. PS has an aim to improve the sustainability of its operations. PS uses incremental budgeting. Table 1.1 shows the budgeted and actual cost and revenue data for 2023. Table 1.1 Budgeted and actual cost and revenue data for 2023 ($000) Budgeted Actual Variance Revenue x Direct costs y Indirect costs z The directors of PS have decided that the business needs a Marketing Manager. The role of the Marketing Manager will be: • to plan the recruitment and training of a new sales team • to organise the production of digital promotions • to advise the Board of Directors on changes to the PS product portfolio. The directors have shortlisted five suitable applicants and plan to invite them all to an assessment centre as part of the recruitment process. Identify one feature of a private limited company. Explain the term sustainability. Refer to Table 1.1. Calculate the variances in 2023 (x, y and z) and state whether each variance is favourable or adverse. Explain one benefit to PS of using incremental budgeting. Analyse one advantage and one disadvantage to PS of using an assessment centre when selecting a Marketing Manager. Evaluate the role of effective packaging for PS.
9609_s24_qp_22
THEORY
2024
Paper 2, Variant 2
View
Questions Discovered
93