3.4. Marketing strategy
A subsection of Business Studies, 7115, through 3. Marketing
Listing 6 of 6 questions
Made Fresh is a company that manufactures high quality organic foods. The company uses ingredients that have been grown by local farmers in country J. Market research has shown that branding has helped the company to achieve its objectives. Recent bad weather in country J has led to many of the farm crops failing. Made Fresh is thinking about importing organic food ingredients from other countries nearby. What is meant by ‘market research’? Identify two possible objectives Made Fresh could have. Objective 1: Objective 2: Identify and explain two advantages to a business of branding. Advantage 1: Explanation: Advantage 2: Explanation: Identify and explain three possible problems Made Fresh might face if they have to import organic ingredients for the foods they manufacture. Problem 1: Explanation: Problem 2: Explanation: Problem 3: Explanation: The Government in country J wants to encourage international trade. Do you think this would be an advantage to Made Fresh? Justify your answer.
7115_s12_qp_12
THEORY
2012
Paper 1, Variant 2
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$LAND sells a wide range of products from food to toys. It has 400 shops in country B. $LAND's marketing strategy is based on penetration pricing. $LAND does no advertising and buys all its products directly from manufacturers. Revenue and profit have increased despite the country being in recession. The Marketing Director wants to expand the business by opening shops in other countries. He believes $LAND will be successful in other countries. What is meant by ‘marketing strategy’? What is meant by ‘penetration pricing’? Identify and explain two possible advantages to $LAND of advertising. Advantage 1: Explanation: Advantage 2: Explanation: 1 3 Identify and explain one advantage and one disadvantage to $LAND of buying direct from manufacturers. Advantage: Explanation: Disadvantage: Explanation: Do you think that $LAND will be successful in other countries? Justify your answer. [ 1 3
7115_w16_qp_12
THEORY
2016
Paper 1, Variant 2
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QCH is a multinational company which makes a range of luxury cars. Last year it made a profit of $700m. One of QCH’s objectives is to enter new markets. QCH wants to start producing cars in country C, a fast growing economy. The Finance Director said: ‘Meeting customer needs is important. We could form a joint venture or set up our own factory. Both options will be expensive, costing $800m. I think QCH’s expansion into country C could be good for other businesses there.’ What is meant by a ‘joint venture’? Identify two advantages to QCH of having objectives. Advantage 1: Advantage 2: Identify and explain two reasons why QCH might want to enter new markets. Reason 1: Explanation: Reason 2: Explanation: 1 4 Identify and explain two factors that QCH should consider when deciding the location of the new factory. Factor 1: Explanation: Factor 2: Explanation: The Finance Director thinks QCH’s expansion into country C could be good for other businesses there. Do you agree? Justify your answer. [ 1 4
7115_s17_qp_11
THEORY
2017
Paper 1, Variant 1
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YMG is a private limited company. It is the largest manufacturer of soft drinks in country V. YMG produces 1 billion litres a year using flow production. The Managing Director wants YMG to expand. He said: ‘I plan to increase production to 3 billion litres over the next 5 years. This will allow us to start selling our products in new markets in other countries. I know import quotas and lack of local knowledge can cause problems but there are ways we can overcome them.’ The Managing Director also plans to invest $60m in new technology to improve efficiency. Define ‘flow production’. Identify two methods (other than technology) a business can use to improve efficiency. Method 1: Method 2: Outline two sources of finance YMG could use for the new technology. Source of finance 1: Source of finance 2: 1 4 Explain how each of the following problems might affect YMG when entering new markets in other countries. Problem caused by lack of local knowledge: Explanation: Problem caused by import quotas: Explanation: Do you think a joint venture is the best way for a business to enter a new market in another country? Justify your answer. [ 1 4
7115_w20_qp_11
THEORY
2020
Paper 1, Variant 1
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DSY is a private limited company. It produces washing machines and cleaning equipment. The Managing Director wants DSY to expand into a different market. He plans to spend $2bn on developing electric cars. There is a lot of competition in the electric car market. This market is growing rapidly. A leading pressure group has identified the environmental problems of non-electric cars. The Managing Director knows that important decisions about the method of production and the new car’s brand image still have to be made. Define ‘pressure group’. Define ‘brand image’. Outline two advantages to DSY of being a private limited company. Advantage 1: Advantage 2: 1 3 Explain two factors DSY should consider when deciding on a suitable method of production for the new product. Factor 1: Explanation: Factor 2: Explanation: Do you think entering a growing market where there is a lot of competition is the best way for a business to expand? Justify your answer. [ 1 3
7115_w20_qp_12
THEORY
2020
Paper 1, Variant 2
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Abdula manages a business partnership that makes sports clothing. The business is working at full capacity. It employs 12 people who are paid on a piece rate basis. The partners have an objective to increase profits by 10 % each year for the next 5 years. They are thinking about a joint venture with another manufacturer of sports clothing as one way of achieving this objective. What is meant by a ‘business partnership’? Identify two ways of paying workers that the partnership could use (other than by piece rates). Way 1: Way 2: Identify and explain two advantages to this business of setting objectives. Advantage 1: Explanation: Advantage 2: Explanation: Identify and explain two advantages to the partnership of a joint venture with another manufacturer of sports clothing. Advantage 1: Explanation: Advantage 2: Explanation: Explain two ways (apart from a joint venture) that the partnership could use to achieve its objective of a 10 % annual increase in its profit over the next 5 years. Recommend which way is most likely to be successful. Justify your answer.
7115_w14_qp_12
THEORY
2014
Paper 1, Variant 2
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Questions Discovered
6