Page 154 - Cambridge IGCSE Business Studies
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Cambridge IGCSE Business Studies Section 3 Marketing
Revision checklist Exam practice questions
● Marketing is used to identify and satisfy 1 Magda is an optician. Magda tests people’s eyes and then
consumer needs and this helps to build sells them spectacles (eye glasses) if needed. However,
customer relationships and loyalty. customers do not have to buy their spectacles from Magda.
● Businesses need to understand why and how Many customers have their eyes tested by Magda but then
consumer spending patterns change and buy their spectacles from other spectacle suppliers. Many of
what they need to do in response so that these suppliers use e-commerce. These businesses have a
they are able to remain competitive.
good customer base because they are not only cheaper, but
● Businesses will often have to respond to the also offer a wider choice of spectacles than Magda.
changing competitive nature of markets in
which they operate. a What is meant by customer base? [2]
● There are benefits and limitations to b Identify two ways Magda is not meeting the needs
businesses of niche and mass marketing. of her customers. [2]
● There are several methods and benefits to a
c Identify and explain two factors that infl uence
business of market segmentation.
consumer decisions when buying products
such as spectacles. [4]
d Identify and explain two effects on Magda’s
business of e-commerce. [6]
e Recommend two ways Magda could respond to
the competition from other suppliers of spectacles.
152 Justify your answer. [6]
2 Gloria’s Garments (GG) is a company that designs and
manufactures fashion clothing. The majority of its output
is for the mass market. However, the company also
provides a specialist service – the design and
manufacture of bridal gowns. This is a niche market.
a What is meant by the term ‘niche market’? [2]
b Identify two ways that GG could segment its
market for fashion clothing. [2]
c Identify and explain two benefi ts to GG of mass
marketing. [4]
d Identify and explain two ways changing consumer
needs might affect GG’s sales and profi ts. [6]
e Do you think it is a good idea for GG to operate
in both niche and mass markets? Justify your answer. [6]
Total available marks 40
