Business 7115 · O Level
Marketing strategy
8 practice questions on Marketing strategy, with worked solutions and instant marking.
Identify and explain two ways that marketing is important for DD.
May/June 2015
Samah and Selina are thinking about purchasing ingredients from a different supplier, ABC (see Appendix 2). Identify and explain one advantage and one disadvantage to FF if they switch to ABC.
May/June 2015
EDGE manufactures mobile (cell) phones. It sells in a highly competitive market. The Marketing manager thinks that, because EDGE is successful at keeping customers loyal, demand for its phones is price inelastic. Its top-selling product, Z, is close to the final stage of its product life cycle. The Marketing manager must decide whether to invest in new product development or to apply extension strategies to product Z. Fig. 1: EDGE - units sold by product category in 2015 Total quantity sold: 800 000
May/June 2016
GKA is a food retailer with 300 shops in places where average consumer incomes are low. It sells a narrow selection of own-label products, including breakfast cereal and toothpaste. GKA carries out no promotion or market research. The Managing Director stated: ‘Last year our market share rose to 5%. Profit went up by 40%. By keeping costs low, we can provide customers with quality products at low prices.’ GKA plans to open 100 shops in areas where average consumer incomes are high. The Managing Director has to decide whether GKA should alter its pricing strategy (method) as the business grows.
May/June 2018
RRM is a small business. Identify and explain two reasons why RRM could stay small.
Oct/Nov 2015
$LAND offers a broad assortment of products, ranging from food to toys. It operates 400 shops in country B. $LAND’s marketing strategy relies on penetration pricing. $LAND carries out no advertising and purchases all its products 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 shops in other countries. He thinks $LAND will do well in other countries.
Oct/Nov 2016
YCG operates in the private sector. It produces toothpaste and toothbrushes. The manufacturing process uses quality control. The Marketing Manager is examining sales data for one of its top-selling products. He believes the product has reached the maturity stage of its product life cycle and is now thinking about possible extension strategies. A number of legal controls apply to the marketing of YCG’s products.
Oct/Nov 2022
MTL is a sizeable business that sells children’s toys. MTL aims to behave ethically towards all of its stakeholder groups, including its 430 employees. The market in which MTL operates has become more competitive. The business uses several methods to promote its products. A strong brand image matters. MTL’s directors are thinking about entering a new market in another country. They recognise that there could be problems if they decide to do so.
Oct/Nov 2025