3. Marketing (AS Level)
A section of Business Studies, 9609
Listing 10 of 93 questions
Drone Development (DD) DD produces a range of drones, which are unmanned aircraft flown by remote control. These drones are used to help farmers identify whether their fields have enough water. They can also help farmers to see how fast crops are growing on large farms. The drones are individually designed using Computer Aided Design (CAD). DD’s mission statement is: ‘To be the leading company in drone technology’. DD’s employees are skilled and highly motivated. This has enabled DD’s managers to use a laissez-faire style of leadership. The Research and Development (R&D) team at DD has developed a drone designed for high-volume production for the consumer market. The new drones will be called Robodz. Secondary research indicates that these drones can be used for taking aerial photographs and videos of sporting and other events, such as cycle races and outdoor parties. The drones will send photographs and videos directly to a user’s smartphone. There are few competitors in this market even though demand is growing particularly from consumers in the 30– 45 years age group. The Marketing Director has done primary research into the consumer market for drones. The results are shown in Table 1.1. Table 1.1: Important features of a drone for the consumer market (number of responses) Important Quite Important Unimportant Price Performance Colour Ease of use Durability Producing Robodz will mean changes in operations at DD: • greater cooperation between the design, production and marketing departments • each designer will have less opportunity for individual design • more automation will be involved. The Board of Directors has agreed to produce Robodz. Define the term ‘Computer Aided Design (CAD)’ (line 4). Explain the term ‘primary research’ (line 15). Refer to Table 1.1. Calculate the total percentage of consumers who stated that ‘ease of use’ is either important or quite important. Explain one possible limitation of the Marketing Director’s primary research. Analyse two factors that could influence the leadership style used as DD moves into the production of Robodz. Recommend a suitable marketing mix for the Robodz. Justify your recommendation.
9609_w22_qp_21
THEORY
2022
Paper 2, Variant 1
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Direct News (DN) Shila and Lucy own and manage DN, an online publishing business. DN produces a daily online local newspaper called QNews. Readers pay a subscription to access QNews. DN’s mission statement is: ‘to be a daily community newspaper for local people, about local people’. DN recently tested a monthly online magazine aimed at the 18–30 age group called QLine. DN’s plan is to stop publishing QNews and produce only QLine. Secondary market research suggests QLine will be popular with national businesses wanting to promote their products. Shila is aware that revenue from online newspapers is decreasing. However, she has found national market research data about online monthly magazines (see Table 2.1). Table 2.1 National revenue for online monthly magazines Revenue source 2020 ($m) 2021 ($m) 2022 ($m) Subscription Advertising revenue Shila thinks that before the business decides to produce QLine, more market research data will be needed. Shila and Lucy will have to decide on new objectives for DN. To ensure a quality product that meets customer expectations, Lucy thinks it is important to have careful management of the supply chain, from content creation to customer delivery. Identify one function of a manager. Explain the term secondary market research (lines 6–7). Refer to Table 2.1. Calculate the percentage increase in total revenue of online monthly magazines from 2020 to 2022. Explain one additional piece of market research data DN would find useful before making the decision to produce QLine. Analyse two reasons why Shila and Lucy will have to change DN’s objectives. Evaluate the importance to DN of effective supply chain management.
9609_w23_qp_21
THEORY
2023
Paper 2, Variant 1
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Friendly Fit (FF) FF is a public limited company that owns a popular social media and fitness app. The app was launched five years ago and now has over three million users worldwide. The app allows users to upload and share pictures and short films of their favourite exercises. There are many other features which have been developed as the app has gained popularity. The app can be downloaded for free and users can access basic features without paying any money. However, to access all the features of the app, customers must pay a monthly fee of $10. FF also receives income from advertising revenue. Table 1.1 shows cost and revenue data for the app for the last two years. Table 1.1: FF’s costs and revenue for the app for 2021 and 2020 ($m) ($m) Revenue from monthly fees 1.6 1.4 Revenue from advertising 1.4 1.8 Total costs 2.0 2.0 Every month, FF carries out a survey of a sample of users to research new features which may be added to the app. The sampling process is outlined in . A stratified sample based on age. Those who respond are given one month’s free access to all the features of the app. Survey sent through the app to 50 000 current users. 15 000 users usually respond to the survey each month. : FF’s sampling process Define the term ‘customers’ (line 6). Explain the term ‘public limited company’ (line 1). Refer to Table 1.1. Calculate FF’s profit margin for the app in 2020. Explain one way in which FF could use profit margin data. Analyse two ways in which FF can increase the value added to its app using the operations process. Evaluate the limitations of FF’s sampling process.
9609_w22_qp_22
THEORY
2022
Paper 2, Variant 2
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Questions Discovered
93