Page 191 - Cambridge IGCSE Business Studies
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13: Marketing mix: place and promotion
Revision checklist Exam practice questions
● The marketing mix is the four key decisions 1 Excel Shoes is a manufacturer of footwear. It produces a
related to product, price, promotion and range of shoes for children and adults. This market is very
place that a business must take in order to competitive.
market products eff ectively.
The owner directors of Excel are considering entering the
● Businesses must choose the most
market for safety footwear. This is a niche market. They
appropriate channel of distribution
have provided the Marketing Manager with a marketing
for selling their products to the final
consumers. budget of $30,000 of which 40% is to be used on
promotion for the new safety footwear.
● There are several methods of promotion a
business might use to increase consumer
a What is meant by ‘niche market’? [2]
awareness about their products and
persuade consumers to buy them instead b Calculate the budget for promotional activities. [2]
of competitors’ products.
c Identify and explain two methods of promotion
● E-commerce and social networking
that Excel could use to promote its new safety
provide huge marketing opportunities
footwear. [4]
for businesses to promote and sell their
products in global markets. d Identify and explain two benefi ts to Excel of carrying
out market research into the safety footwear market. [6]
e Do you think that Excel Shoes should enter the
safety footwear market? Justify your answer. [6]
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2 The Regal Pottery Company (RPC) is a manufacturer of
pottery, such as plates and cups. It produces high
quality items that celebrate events such as the Olympic
Games and royal occasions as well as items celebrating
different festivals. It distributes its products to the
fi nal consumer through middlemen in its own country
and abroad.
RPC has recently invested in a new website. It is
keen to develop markets through e-commerce and
social networking.
a What is meant by ‘e-commerce’? [2]
b Identify two methods RPC could use to price its
products. [2]
c Explain how RPC could use the internet to promote
its products. [4]
d Identify and explain two advantages to RPC of
using wholesalers to distribute its products. [6]
e Do you think RPC is right to develop markets
through e-commerce and social networking?
Justify your answer. [6]
Total available marks 40
