Caleb wants to become an entrepreneur. He intends to launch a business making handmade furniture, such as tables and chairs. He will sell his products to a niche market. A strong brand image will be important. Caleb understands that many legal controls may affect his marketing strategy. He is considering using e-commerce to sell his products. Caleb also needs to choose a suitable location for the business.
(a)[2]
Define the term ‘niche market’.
(b)[2]
Identify two effects of legal controls on a marketing strategy.
(c)[4]
Outline two reasons why a good brand image could matter for Caleb’s business.
(d)[6]
Explain two threats to Caleb’s business from using e-commerce to sell his products.
(e)[6]
Explain two factors a service business ought to consider when choosing a suitable location. Which factor do you think matters more? 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: “A small, usually specialised, section of a much larger market” …