Marketing past paper questions

Question 1

Describe the role of public relations (PR) in an organisation.

Answer 1

build awareness of an organisation
generating press releases
organising press conference
organising sponsorship
donating to charity

Question 2

Explain the benefits to an organisation of using loss leaders as a pricing tactic.

Answer 2

Can be used in advertising campaigns to attract customers to come into
the organisation. This means the number of customers will increase
customers will come to the store and purchase more than just the loss leader products. This means the business will receive increased profit
Customers may purchase the loss leader priced items in bulk − which
can increase sales.

Question 3

Explain the advantages to an organisation of having a varied product portfolio

Answer 3

Increases the brand awareness to customers. this means the business will increase their market share
The business can cater to different market segments. this means the business can maximise sales
the business is able to overcome seasonal fluctuations. this means a businesses cash flow will be balanced throughout the year
Will assist the financing of launching new products. this means the business is able to produce new products that are in demand to maximise profits

Question 4

Explain the advantages to an organisation of using a smartphone application
(app) to promote products.

Answer 4

can reach a global audience. This means more customers will be aware of the products the business sells
photo and video demonstrations can be uploaded. this means benenfits of the product will be highlighted to increase the chance of sales

Question 5

Compare penetration pricing with skimming pricing.

Answer 5

penetration pricing is when products are priced at a low price when they are first launched ot the market. Whereas skilling pricing is when products are sold at a high price when they are first launched to the market.
With penetration pricing the price will later be increased. whereas with market skimming the price will later be decreased
penetration pricing is a short term pricing strategy. whereas skimming is also a short term pricing strategy

Question 6

Explain why an organisation may choose to sell its products using a wholesaler

Answer 6

reduced cost for holding stock for the manufacturer. This means the manufacturer will have increased profits
Wholesaler will often advertise the product for the manufacturer. This measn the manufacturer can focus on just producing the product
The manufacturer will not have to make as many small trips to the retailer. This means admin costs are saved
the risk of not selling the product to a retailer or to the customer is taken on by the wholesaler. this means the risk for the manufacturer is reduced

Question 7

Describe the marketing departments objectives

Answer 7

improve the image of the organisation
increase followers on social media

Question 8

Explain the benefits of out of town stores

Answer 8

often beside a large free car park. this means it can attract customers
a large range of products can be held. this means sales can increase

Question 9

Explain the benefits of convenience stores

Answer 9

can charge higher prices because customers often have little choice elsewhere. this means profit can be maximised

Question 10

Describe how to improve people to improve sales

Answer 10

regularly train staff on how to provide good customer service
make sure staff are knowledgeable about the latest products or services
ensuring staff are always motivated

Question 11

Describe how to improve process to improve sales

Answer 11

keep ordering times to a minimum
ensure all outlets are well staffed so waiting times are kept to a minimum

Question 12

Describe how the physical environment could be improved to improve sales

Answer 12

all premises should be attractive clean and tidy
websites should be laid out in a user friendly manner
a pleasant ambience should be created to suit the business ethos

Question 13

Describe the sales promotions which could be used when launching a new product.

Answer 13

demonstrations to let customers try the products before buying
giving customers free entry to competitons
buy on get one free
giving customers free delivery with purchases
giving customers free gifts with purchase of the new product

Question 14

Explain the impact on a product’s profit as it moves through the various stages of
its product life cycle.

Answer 14

at the research and development stage products havent been launched to the market yet. this means no profit will be made
at the introduction stage there will be high costs for promotion. this means that low or no profits will be made
at the growth stage sales increase as customer awareness increases. this means profits will start to increase
at the maturity stage the product is fully established on the market. this means that profit levels will reach their peak.
at the decline stage sales for the products have fallen. this means that profit levels will start to fall

Question 15

compare desk and field research

Answer 15

field research is first hand information. whereas desk research is second hand information.
desk research is easy to obtain and can be used immediately. Whereas field research is time consuming to carry out
desk research may not be relevant to the organisations needs. whereas field research can be tailored to research specific areas
field research is reliable as the source is known. Whereas desk research may not be reliable as the source is not known.

Question 16

explain the benefits of using e commerce

Answer 16

customers world wide can purchase goods. this means market share will increase
customers can purchase 24/7. this means sales will increase
online discounts may be available as shop is not required. this means it can attract more customers
products can be compared. this mean it will allow customers to make an informed decision
a website can be set up failry cheaply. this means the organisation will have increased profit