$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.
(a)[2]
What does the term ‘marketing strategy’ mean?
(b)[2]
What does the term ‘penetration pricing’ mean?
(c)[4]
Identify and explain two possible benefits to $LAND of advertising.
(d)[6]
Identify and explain one advantage and one disadvantage to $LAND of buying direct from manufacturers.
(e)[6]
Do you think that $LAND will be successful in other countries? Support 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 plan to bring together the right mix of the 4 elements of the marketing mix in order to achieve a specific market objective” …