Deco is an electronics company manufacturing a wide range of products. The company operates in a highly competitive and fast changing market. The management of Deco believe that the company is ‘market orientated’. What is meant by a ‘market orientated’ company? Identify two possible disadvantages to Deco of having a wide range of products. Disadvantage 1: Disadvantage 2: Deco is about to carry out some market research. It intends to use sampling to research the market. Identify and explain two methods of sampling that Deco could use. Method 1: Explanation: Method 2: Explanation: Deco also uses secondary market research. Identify and explain three reasons why the results of secondary market research might not always be useful to a business. Reason 1: Explanation: Reason 2: Explanation: Reason 3: Explanation: Deco wants to spend more on developing new products. In order to do this it will have to spend less on market research. Do you think Deco should do this? Justify your answer.

0450_s10_qp_11

THEORY

2010

Paper 1, Variant 1

View

Grimshaw manufactures mobile phones for the mass market. Last year its market share increased by 3%. The Managing Director is planning to set up a new factory in country T to supply the mobile phone market in that country for the first time. Grimshaw plans to sell a new model of mobile phone. The Managing Director has asked for market research to be done. He said: ‘As a multinational, we can set up a new factory anywhere; I want to know whether the Government of country T will offer us any help to build our factory there.’ What is meant by ‘mass market’? What is meant by ‘market share’? Identify and explain two advantages of market research to Grimshaw. Advantage 1: Explanation: Advantage 2: Explanation: Identify and explain two advantages to Grimshaw of developing new products. Advantage 1: Explanation: Advantage 2: Explanation: Do you think the Government of country T should help businesses such as Grimshaw set up in its country? Justify your answer.

0450_w15_qp_11

THEORY

2015

Paper 1, Variant 1

View

Dipta and Ravi are friends. They want to start up a business making chocolates to sell at local markets. Most ingredients such as cocoa beans will be imported. Ravi’s primary market research shows that using ethical sources of supply for the ingredients will be popular with consumers. Ravi and Dipta have no business experience, but Dipta has written a business plan. They need $500 for equipment, but they cannot decide which source of finance to use. What is meant by a ‘business plan’? Identify two possible methods of primary market research that Ravi might have used. Method 1: Method 2: Identify and explain two benefits to Dipta and Ravi of acting in an ethical way. Benefit 1: Explanation: Benefit 2: Explanation: Identify and explain two possible advantages of importing for Dipta and Ravi’s business. Advantage 1: Explanation: Advantage 2: Explanation: Explain two sources of finance Dipta and Ravi could use. Recommend which source Dipta and Ravi should choose. Justify your answer.

0450_m17_qp_12

THEORY

2017

Paper 1, Variant 2

View

Anouk is a sole trader. She designs and makes jewellery at home, using hired equipment. Anouk enjoys selling the jewellery at local markets. Last year her sales revenue increased by $500 to $3000. She plans to use $50 for a marketing budget. Anouk would like to do some primary market research when she has time. Anouk thinks she should have a business partner. What is meant by a ‘marketing budget’? Identify two methods of primary market research that Anouk could use. Method 1: Method 2: Identify and explain two possible advantages for Anouk of hiring equipment. Advantage 1: Explanation: Advantage 2: Explanation: Identify and explain two disadvantages to Anouk of having a business partner. Disadvantage 1: Explanation: Disadvantage 2: Explanation: Anouk could use either leaflets or local newspaper advertising as methods of promoting her jewellery. Recommend which method you think Anouk should use. Justify your answer.

0450_s14_qp_11

THEORY

2014

Paper 1, Variant 1

View

Si and Ramon are friends. They want to set up a photography business. They would take pictures at weddings, birthdays and other special events. The business will be a partnership. Based on their primary market research, Si believes there is enough demand. Ramon has produced a business plan which shows they need $8000 for a shop and $4000 for equipment. They plan to spend $500 on promotion, but cannot agree on the best method to use. What is meant by a ‘partnership’? Identify two methods of primary market research that Si and Ramon might have used. Method 1: Method 2: Identify and explain two possible sources of finance that they could use to obtain the equipment. Source 1: Explanation: Source 2: Explanation: Identify and explain two advantages to Si and Ramon of having a business plan. Advantage 1: Explanation: Advantage 2: Explanation: Consider two methods of promotion that would be suitable for Si and Ramon to use. Which of these two methods would be the most appropriate? Justify your answer.

0450_s15_qp_11

THEORY

2015

Paper 1, Variant 1

View

Mabel wants to set up her own hairdressing business. She will need to build good customer relationships. She has done some secondary market research to find out possible demand and what methods of promotion to use. She has decided to buy her inventory from a wholesaler. Mabel is now looking for the right location for her business. She thinks that location will be more important than price charged to the success of her business. Identify two ways that a business could build good customer relationships. Way 1: Way 2: What is meant by ‘secondary market research’? Identify and explain two methods of promotion (other than promotional pricing) that Mabel might use. Method 1: Explanation: Method 2: Explanation: Identify and explain two possible disadvantages to Mabel of buying her inventory from a wholesaler. Disadvantage 1: Explanation: Disadvantage 2: Explanation: Do you think that the right location is more important than the prices she charges to the success of Mabel’s business? Justify your answer.

0450_s15_qp_12

THEORY

2015

Paper 1, Variant 2

View

Alana opened a restaurant in the city centre 5 years ago. The restaurant provides plant-based meals using a range of vegetables. Alana uses primary market research to help identify changes in consumer spending patterns. Market research can also be used to help segment a market. The restaurant has 16 employees. Each employee is paid the legal minimum wage. In 2023 the business made a profit of $80000. Alana wants to know how an increase in interest rates might affect her business. Define ‘profit’. Identify two reasons why consumer spending patterns might change. Reason 1: Reason 2: Outline two methods of primary market research Alana might use. Method 1: Method 2: [ 1 12 Explain two possible effects of an increase in interest rates on Alana’s business. Effect 1: Explanation: Effect 2: Explanation: Do you think income is the best way for a business to segment a market? Justify your answer. 1 12

0450_s24_qp_13

THEORY

2024

Paper 1, Variant 3

View

Early Tots makes wooden toys for children. The business uses both primary and secondary market research data to decide what products to make. It has a wide range of toys but some of the products are nearing the end of their product life cycle. The managers are thinking about using extension strategies for these products. What is meant by the term ‘secondary market research’? What is meant by the term ‘product life cycle’? Identify and explain two methods that Early Tots could use to gather primary market research data. Method 1: Explanation: Method 2: Explanation: Identify and explain three extension strategies that Early Tots could use. Strategy 1: Explanation: Strategy 2: Explanation: Strategy 3: Explanation: Consider the advantages and disadvantages of two channels of distribution that Early Tots could use for a new range of wooden toys. Recommend which channel Early Tots should use. Justify your answer. Channel 1: Channel 2: Recommendation:

0450_w11_qp_11

THEORY

2011

Paper 1, Variant 1

View

Yura is the Managing Director of a company that sells holidays. The company organises hotels, air flights and car hire for customers. For the first time, the company is going to do some market research. Secondary sources will be used and a sample of customers will be selected for primary research. What is meant by ‘market research’? Identify two advantages of using secondary sources. Advantage 1: Advantage 2: Identify and explain two methods of sampling that the company could use. Method 1: Explanation: Method 2: Explanation: Identify and explain two ways of segmenting the market for holidays that the company could use. Way 1: Explanation: Way 2: Explanation: Yura believes that the price is the most important part of the marketing mix for holidays. Do you think that he is correct? Justify your answer.

0450_w13_qp_11

THEORY

2013

Paper 1, Variant 1

View

YOGO is a new business which Amelia has just set up using Government support. YOGO makes a range of sweets targeted at adults. It is a niche market. Amelia has been looking at the marketing part of her business plan. She has to decide which pricing method to use. Amelia is spending a lot of money on packaging. She did not do any primary market research as she thinks she can use secondary data to make decisions. She believes that all adults like sweets. Identify two reasons why a Government might support business start-ups. Reason 1: Reason 2: Identify two parts (other than marketing) of a business plan. Part 1: Part 2: Identify and explain two possible pricing methods that Amelia might use. Method 1: Explanation: Method 2: Explanation: 1 12 Identify and explain two reasons why packaging is important for YOGO’s products. Reason 1: Explanation: Reason 2: Explanation: Do you think Amelia’s business would benefit from primary market research? Justify your answer. [ 1 12

0450_w16_qp_11

THEORY

2016

Paper 1, Variant 1

View

---