NLR produces a variety of branded skincare goods, including hand cream. The packaging of these goods matters. As with many businesses, NLR uses market segmentation. The Marketing Director knows that the stage of the product life cycle may affect NLR’s pricing choices. He is studying market research findings. These indicate that 85% of consumers expect businesses to react to environmental pressures.
(a)[2]
Identify two factors that could influence the accuracy of market research.
(b)[2]
Identify two benefits for a business of using market segmentation.
(c)[4]
Outline two ways in which NLR might respond to environmental pressures.
(d)[6]
Explain how NLR’s pricing decisions could vary at two different stages of the product life cycle.
(e)[6]
Do you think improving the brand image is the most important function of packaging? 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: “Size of the sample” …