F&G is a major fashion retailer with 20 shops in country C. The business applies market segmentation, and its intended market is men aged 25 to 40 years old. The Marketing Director has been examining the marketing data in Table 1. She is concerned that the business’s spending on marketing is not cost effective. She wants to shut every F&G shop and rely only on e-commerce.
(a)[2]
What is meant by the term ‘marketing budget’?
(b)[2]
Calculate F&G’s revenue for 2016.
(c)[4]
Identify and explain two advantages of market segmentation to F&G.
(d)[6]
Identify and explain two possible reasons why F&G’s marketing spending may not be cost effective.
(e)[6]
Do you think F&G should close down all its shops and rely only on e-commerce? 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: “Estimated cost forecast for promoting a business’ products or services” …