Pamela runs her business as a sole trader. She began her successful photography business 30 years ago. Her work focuses on photographing people and places for posters, calendars and fashion magazines. This is a niche market. Pamela includes cost-plus pricing in her marketing mix. Providing a high quality service is important to Pamela and her 2 employees.
(a)[2]
Define cost-plus pricing.
(b)[2]
Define marketing mix.
(c)[4]
Outline two reasons why a high quality service might matter for Pamela’s business.
(d)[6]
Explain two advantages to Pamela of running her business as a sole trader.
(e)[6]
Do you think operating in a niche market will give a small business a better chance of success than operating in a mass market? Justify your answer.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “The selling price is worked out from the cost of making a product plus a fixed percentage for profit” …