Pamela is a sole trader. She launched her thriving photography business 30 years ago. She focuses on photographing people and places for use in posters, calendars and fashion magazines. This is a niche market. Pamela uses cost-plus pricing as part of her marketing mix. Providing a high-quality service is important to Pamela and her 2 employees.
(a)[2]
Define ‘cost-plus pricing’.
(b)[2]
Define ‘marketing mix’.
(c)[4]
Outline two reasons why a high-quality service may be important for Pamela’s business.
(d)[6]
Explain two advantages to Pamela of operating as a sole trader.
(e)[6]
Do you think operating in a niche market will give a small business a better chance of success than working in a mass market? 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: “The selling price is set from the cost of producing a product with a fixed percentage added for profit” …