Business 7115 · O Level · Marketing, competition and the customer
Marketing, competition and the customer — practice question
F&G is a major fashion retailer, and it operates 20 shops in country C. The business applies market segmentation, with men aged between 25 and 40 years old as its target market. The Marketing Director has been examining the marketing data in Table 1. She is concerned that the amount the business spends on marketing is not cost effective. She would like to close down all F&G shops and rely only on e-commerce.
(a)[2]
What does the term ‘marketing budget’ mean?
(b)[2]
Calculate F&G’s revenue for 2016.
(c)[4]
Identify and explain two advantages of market segmentation to F&G.
Benefit 1:
Explanation:
Benefit 2:
Explanation:
(d)[6]
Identify and explain two possible reasons why the amount F&G spends on marketing might 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 forecast of costs needed to promote a business’ products or services” …