Page 201 - Cambridge IGCSE Business Studies

14: Marketing strategy
Revision checklist
● A marketing strategy requires the
combination of the elements of the
marketing mix with an appropriate level of
resources to achieve marketing objectives. two months’ time. The Marketing Director has set a
● Marketing activities are influenced and
constrained by legal controls aimed at
protecting the consumer.
● Entering foreign markets can present huge
marketing opportunities for businesses,
but they should be aware of the potential
limitations of such expansion.
Exam practice questions
1 Sublime is a well-known chocolate manufacturer in
Country Y. The company has developed a new chocolate
bar. They want to launch this product onto the market in
marketing objective for the new product of 2,000,000 units
of sales in the fi rst year.
a What is meant by ‘marketing objective’? [2]
b Identify two methods of promotion Sublime could
use for the launch of the new chocolate bar. [2]
c Identify and explain two methods of pricing Sublime
could use when launching its new chocolate bar. [4]
d Identify and explain two reasons why it is important
for Sublime to develop new products. [6]
e The Marketing Director believes that product and
price are the two most important elements of the
marketing mix. Do you agree? Justify your answer. [6]
2 Sung Song, the owner of a new Chinese take-away outlet
is disappointed with sales in the fi rst three months of 199
business. There are several take-away competitors locally.
His prices are a little higher than his closest competitor.
However, the customers who have bought his food say it
is the best in town.
He has asked a small business adviser to help him
improve sales. The adviser has made the following
recommendations:
■ Develop a marketing strategy.
■ Set a marketing budget.
■ Increase sales promotion.
a What is meant by ‘sales promotion’? [2]
b Identify two features of a marketing strategy. [2]
c Explain the importance to Sung Song of setting a
marketing budget. [4]
d Identify and explain how sales promotions might
increase the sales of Sung Song’s business. [6]
e Do you agree with the business adviser’s
recommendation that a marketing strategy
will increase Sung Song’s sales? Justify your answer. [6]
Total available marks 40