SLAND offers a very broad assortment of goods, ranging from food to toys. It operates 400 stores in country B. SLAND bases its marketing strategy on penetration pricing. It carries out no advertising and obtains every product straight from manufacturers. Even though the country is in recession, revenue and profit have risen. The Marketing Director plans to grow the business by opening stores in other countries. He is convinced that SLAND will do well in other countries.
(a)[2]
What does the term ‘marketing strategy’ mean?
(b)[2]
What is meant by ‘penetration pricing’?
(c)[4]
Identify and explain two possible benefits to SLAND of advertising.
(d)[6]
Identify and explain one benefit and one drawback for SLAND of buying directly from manufacturers.
(e)[6]
Will SLAND be successful in other countries? 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: “Plan that brings the 4 parts of the marketing mix together to meet objectives” …