- Mark Scheme /

Question Answer Marks AO Element Notes Guidance

1 Identify two ways legal controls 2 Only award the first two
could affect marketing strategy. responses given.

Award 1 mark for each relevant

way (max 2).
Points may include:
• Cannot make misleading/false
claims in advertisements / may
have to
change/withdraw/restrict how
or where advertise/promote
• Increase costs/time (spent on
marketing)
• May have to change what is
written on packaging / make
sure product description is
accurate/not misleading on
packaging
• Could lead to restrictions
about where they can sell it
• Cannot sell underweight
goods
• Goods must be fit for purpose

• Cannot charge less than

minimum price set / cannot
charge more than maximum
price set / cannot fix prices
(with competitors)
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

Other appropriate responses should

also be credited.
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

2 Explain how each of the following 6 Note: To use words from

problems might affect YMG the stem as application,
when entering new markets in the reference must be
other countries. appropriate (i.e. make
sense) in relation to the
Award 1 mark for identification of
point being made.
each relevant problem (max 2).
The following words are
Award 1 mark for each relevant
likely to be appropriate
reference made to this business
for this question:
(max 2).
• Private limited
Award 1 mark for each relevant
company • Flow
explanation (max 2).
production • $60m. • The
Points may include: largest manufacturer • 3
billion litres • New
Lack of local knowledge: technology • Soft drinks
• May not be aware of competitors • Expanding production
actions [k] leading to fewer sales
/lower revenue [an] of soft drinks Other appropriate
[app] • May not understand examples in context can
customer buying habits [k] so must still be credited.
spend more money developing new
products [an] rather than investing Do not accept answers
$60m in new technology [app] • which clearly refer to
Customers may not like [K] the soft tariffs.
drinks [App]
Do not accept the same
Import quotas: analysis point for both
problems.
• This limits the number of items
that can be brought into the country
[k] so fewer litres needed [app]
which could lead to higher
prices[an]
Other appropriate responses should
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

also be credited.
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

3 Identify two impacts of legal 2

controls on marketing strategy.

Award 1 mark per impact (max

2).
Points might include:
• Cannot make misleading /
false claims in advertisements
/ adverts may have to be
changed or withdrawn /
influence where / when / who
it can be advertised
• Increase costs / time spent on
marketing
• May have to change what is
written on packaging / ensure
product description is accurate
on packaging / make sure
information promotion /
packaging is not misleading
• Cannot sell underweight
goods
• Cannot charge less than
minimum price set / cannot
charge more than maximum
price set / cannot fix prices
(with competitors)
Other appropriate responses should
also be credited.
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

4 Do you think a joint venture is 6 This is a general question

the best way for a business to so there are no marks for
enter a new market in another application.
country? Justify your answer.
For evaluation to be
Award up to 2 marks for awarded justification will
identification of relevant points. usually follow on from
relevant analysis of
Award up to 2 marks for relevant
points.
development of points.
Answers which only
Award 2 marks for justified
discuss alternative
decision as to whether a joint
options cannot be
venture is the best way for a
awarded evaluation
business to enter a new market in
marks.
another country.
Joint venture:
• Allows the business to gain
important local information about
customers [k] so better able to meet
customer requirements [an]
ensuring sales [an] • Wider range
of contacts/better access to
resources [k] so may be able to
obtain cheaper resources [an]
reducing production costs [an] •
Less competition [k] as working
with local business [an] helping to
increase its market share [an] • Can
provide access to other specialist
staff and technology [k] • Clash of
management styles [k] lead to
conflict/problems with decision
making [an] • Must share profits [k]
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

Other options may include:

• Franchising [k] which will reduce
the problem of a lack of local
knowledge [an] may negatively
affect reputation [an] • Licensing
[k] losing control over the
production [an] • Expand
themselves [k] allowing them to
retain all the profits [an]
Other appropriate responses should
also be credited.
Justification might include:
• A joint venture allows the
business to gain important local
information about customers [k] so
they are better able to meet
customer requirements [an]
ensuring sales [an]. Expanding on
their own would require them to
raise more capital [k]. If they are
happy to share control a joint
venture is the best way as it helps
reduce the risks of setting up in a
new country[eval]. Since expanding
on their own maybe too expensive.
[eval].
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

5 Do you think a business should 6

use the same marketing mix to
sell its products to different age
groups? Justify your answer.
Award up to 2 marks for
identification of relevant issues.
Award up to 2 marks for relevant
development of points.
Award 2 marks for justified
decision as to whether a business
should use the same marketing mix
to sell its products to different age
groups.
Points might include:
• Same marketing mix is cheaper
[k] so reducing marketing costs [an]
which helps to keep prices low [an]
• Depending on your customers you
may want to advertise in different
locations using different media [k]
to attract different target audiences
[an]
Justification might include:
• No, because it is unlikely that the
price, promotion, place and product
will be exactly the same so they
would have to change something
otherwise they would risk
losing/missing out on sales which
is the whole point of targeting
different market segments. [eval]
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

[eval]
Other appropriate responses should
also be credited.
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

6 Consider how the following three 12

elements of the marketing mix
could help to make the new
product successful. Which do you
think is the most important
element for the success of the new
product? Justify your answer.

Relevant points might include:

Price :
• Penetration pricing into existing
dessert market
• Cost-plus pricing as need to
recoup development costs
Place :
• Distribute through wholesalers or
large supermarkets to reach a mass
market
• Distribute through gyms or health
food outlets to reach health
conscious market
Promotion:
• Advertise in health and fitness
magazines for the health conscious
consumers
• TV advertising as aimed at large
market
• Free samples to ensure potential
consumers try the new dessert
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

Knowledge/Analysis/Evaluation
– award up to 10 marks using the
levels-based mark scheme below.

Level 3 :
At least 2 × Level 2 +
9–10 mark for well justified
conclusion of which element of the
marketing mix will contribute the
most to the success of the new
product and why the other elements
will contribute less.
7–8 mark for some limited
judgement shown in conclusion of
which element of the marketing mix
will contribute the most to the
success of the new product
Level 2:
4–6 marks
Detailed discussion of how each
element of the marketing mix can
contribute to the success of the new
product. A clear strategy needs to
be explained, e.g. pricing method
named and explained as to why it
would be effective
Level 1:
1–3 marks
Outline of how each element of the
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

marketing mix can contribute to the

success of the new product. Simple
statement made, e.g. reduce the
price to gain more customers
.............................................................................................
Level 1 – 1 mark for each L1
statement (max of 3 marks), e.g.
place can be through wholesalers
and supermarkets as they can sell a
lot of the products to this large
market.
Level 2 – 1 × L2 explanation can
gain 4 marks and a further mark can
be awarded for each additional L2
explanation (max 6 marks), e.g.
Place can be through wholesalers
and supermarkets as they can sell a
lot of the products to this large
market. These outlets are where the
most customers will buy desserts
and so it will increase the chance
of the new ice-cream being seen on
the shelves and then purchased (L2
+ application for referring to
ice-cream in the answer).
Level 3 – For L3 to be awarded
there needs to be at least two L2
marks awarded and then a justified
conclusion of which element of the
marketing mix will contribute most
to the success of the new product.
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

Award up to 2 additional marks

for relevant application.
Possible application marks: Sugar
free ice-cream; MF has a large
market share of the food markets;
objectives are growth and increased
market share; 10% of adults should
not be eating sugary foods; 40% of
adults are overweight; other food
businesses are planning the
introduction of low sugar food
products; health conscious
consumers.
There may be other examples in
context that have not been included
here.
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

7 What is meant by ‘marketing 2

strategy’?
Clear understanding [2]: for
example
Plan to use the right combination
of the marketing mix [1] to achieve
a particular marketing objective
[+1]
OR a plan of action designed to
promote and sell a product or
service [1] to achieve a set goal
[+1]
OR a plan for promoting products
[1] to enter a new market [+1]
Some understanding [1]: how
combine the 4 Ps
OR plan for marketing or how to
increase sales
OR how to promote a product
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

8(a) Do you think REW should start 6 Application marks may

selling its products in other be awarded for
countries? Justify your answer. appropriate use of the
following:
Knowledge [1] Award max. 1 mark • correct use of data from
for identification of relevant the table
issue(s)
• award winning
Application [1] Award max. 1 mark
• carpets or rugs
for a relevant reference made to this
business • wool
Analysis [2] Award up to 2 marks • survival (is main
for relevant development of objective) / survive
point(s)
• GDP falling /
Evaluation [2] Justified decision recession
made as to whether REW should
start selling its products in other • Market research
countries. suggests high demand

Points might include: Do not award answers

which focus on
• Access to more markets OR more production e.g. access to
(potential) customers [1] leading to raw materials / labour
higher revenue [an]
• Spread risk [k] as GDP in own
country falling [app] and sales
elsewhere could make up for the
shortfall in demand [an]
• Greater recognition OR brand
awareness [k] for its award winning
products [app]
• Existing competition [k] could
make it difficult to achieve high
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

sales [an] even though market

research suggests high demand
[app]
• Lack knowledge of local markets
and tastes [k] about rugs [app] so
might need to spend money
changing products [an]
• Language barriers [k]
• Exchange rates problems [k]
• Tariffs [k] which could increase
prices [an]
• Quotas [k] which restricts the
amount of products the business is
able to sell [an] which may make it
harder to meet customer demands
[an]
• Transport problems OR
distribution problems [k] increases
expenses / cash outflow [an]
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

9 Do you think BBT should stop 6 Application marks may

selling product A? Justify your be awarded for
answer. appropriate use of the
Knowledge [1] – award 1 mark for following:
identification of relevant issue(s) • breakfast cereal
[max 1] • ingredients or examples
Application [1] – award 1 mark for such as wheat
a relevant reference to this business • popular (brand)
Analysis [2] – award up to 2 marks • correct use of numbers
for relevant development of point(s) such as number of years,
Evaluation [2] – justified decision change in revenue, 2016
made as to whether BBT should revenue
stop selling product A • decline stage
• competitive pricing
Relevant points might include:
• ethical
• Sales of Product A fallen [k] by
• marketing strategy
40% [app]
• Product A still the highest sales Do not award general
[k] by $20 000 [app+an] which is marketing methods such
more than B & C combined [an] as lower prices or
• Have other products that are advertise, as these are not
increasing in demand [k] examples of extension
• Use extension strategies [k] such strategies
as changing the cereal packet [app]
to remind customers OR attract
people’s attention [an] so start
buying them (again) OR increase
revenue [an]
• Could use opportunity to
introduce new brands [k] as product
C has now been in the market for 2
years [app]
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

10 Identify and explain two ways in 4 Application marks may

which legal controls on marketing be awarded for
might affect C&P. appropriate use of the
following:
Knowledge [2×1]: award 1 mark
for each way identified Jewellery and related
words such as necklaces
Application [2×1]: award 1 mark
and bracelets, Metals,
for each explanation in context
Correct use of data from
Points might include: table 2, Pay for materials
when ordered, Phoebe
• Cannot make false claims about works from home, Cory
what the product will do OR must manages the accounts
avoid misleading adverts OR and shop, Business
Advertising claims might have to partnership.
change to ensure compliance [k] •
Contents OR product must be
described accurately [k] so would
need to be handmade • Products
must be safe to use OR must offer
to repair or replace faulty goods [k]
e.g. if bracelet broken [app] • May
have to change how products made
[k] • Mistakes could lead to fines
OR damage reputation [k]
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

11 Identify and explain two reasons 4 Application marks may

why QCH might want to enter be awarded for
new markets. appropriate use of the
following: cars, luxury,
Knowledge [2 × 1]: award 1 mark
factory, profits of $700m,
for each reason identified
joint venture,
Application [2 × 1]: award 1 mark multinational, customer
for each explanation in context needs, their objective,
fast growing economy.
Points might include:
• Spread risk [k] of selling cars
[app] • Economies of scale [k]
buying factory stock [app] •
Increase sales OR market share OR
target market [k] as it is a fast
growing economy [app] • Home
market saturated [k] • Greater
recognition OR brand awareness
[k] • Access to cheaper labour OR
resources [k] • Fewer trade
restrictions [k]
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

12 Do you think that $LAND will be 6

successful in other countries?
Justify your answer.
Knowledge [1] – award up to 1
mark for identification of relevant
points
Application [1] – award 1 mark if
relevant reference made to this
business
Analysis [2] – award up to 2 marks
for relevant development of point
(s)
Evaluation [2] – justified decision
made as to whether $Land will be
successful in other countries
Relevant points might include:
• Different countries have different
tastes [k] so might not like the toys
[app] leading to fewer sales [an] •
High set up costs [k] as need to
open shops [app] •
Competition/need to attract
customers [k] as customers might
be loyal to other companies [an] •
Legal/regulations [k] might not be
able to sell some of its foods [app]
• Strategy has worked in country B
[k] as profits increased [app] •
Different economic environment
[k] as country B is in recession
[app] so customers might not want
cheaper products [an] •
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

Communication/language problems
[k]

13 Calculate the following values: X 2

and Y
Application [2×1] award 1 mark for
each correct answer.
Closing balance: X: (20);
Net cash flow: Y: 0 or zero

14 What is meant by ‘marketing 2

strategy’?
Clear understanding [2]: plan to
combine the right combination of
the 4 elements of the marketing mix
to achieve a particular market
objective OR Put together the right
mix of the 4Ps to increase sales [2]
OR A plan for promoting goods to
enter a new market [2]
Some understanding [1], e.g. how
to combine the 4P’s OR how to
promote a product OR a plan for
marketing OR how to increase sales
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

15 What is meant by ‘marketing 2

strategy’?
Clear understanding [2]: plan to
combine the right combination of
the 4 elements of the marketing mix
to achieve a particular market
objective OR Put together the right
mix of the 4Ps to increase sales [2]
OR A plan for promoting goods to
enter a new market [2]
Some understanding [1], e.g. how
to combine the 4P’s OR how to
promote a product OR a plan for
marketing OR how to increase sales
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

16 Do you think that $LAND will be 6

successful in other countries?
Justify your answer.
Knowledge [1] – award up to 1
mark for identification of relevant
points
Application [1] – award 1 mark if
relevant reference made to this
business
Analysis [2] – award up to 2 marks
for relevant development of point
(s)
Evaluation [2] – justified decision
made as to whether $Land will be
successful in other countries
Relevant points might include:
• Different countries have different
tastes [k] so might not like the toys
[app] leading to fewer sales [an] •
High set up costs [k] as need to
open shops [app] •
Competition/need to attract
customers [k] as customers might
be loyal to other companies [an] •
Legal/regulations [k] might not be
able to sell some of its foods [app]
• Strategy has worked in country B
[k] as profits increased [app] •
Different economic environment
[k] as country B is in recession
[app] so customers might not want
cheaper products [an] •
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

Communication/language problems
[k]
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

17 Do you think that the 6 For decision, either

Government of country Y should viewpoint is acceptable.
encourage Kasper Construction Application marks may
to locate in country Y? Justify be awarded for
your answer. appropriate use of the
following: secondary
Knowledge [1] – award 1 mark for
sector, legal controls,
identification of relevant issue(s)
want to reduce
[max 1].
unemployment, use of
Application [1] – award 1 mark if numbers, environmental
relevant reference made to KC’s concerns, pressure
business. groups, bricks (or
components such as clay,
Analysis [2] – award up to 2 marks stone or situations where
for relevant development of bricks are used such as
point(s). buildings/houses,
Evaluation [2] – justified decision multinational company.
made as to whether Government
should encourage Kasper
Construction to locate in country
Y.
Relevant points might include:
• Create jobs [k] help reduce
unemployment [app] • Tax receipts
[k] to provide services to local
people [app] • Develop local
expertise [k] as sector only 15%
[app] so may be limited knowledge
of process involved [an] • Develop
local infrastructure [k] • May
exploit local labour force [k] as
fewer legal controls [app] • Deplete
natural resources [k] to make bricks
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

[app] • Take profits out of the

country [k] • Damage to
environment [k] as bad reputation
[app].
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

18 Explain two ways in which 6

Toddles could become more
profitable. Recommend which
way Toddles should use. Justify
your answer.
Knowledge [1] – award 1 mark for
identification of relevant way(s)
[max 1]
Application [1] – award 1 mark if
relevant reference made to this
business
Analysis [2] – award up to 2 marks
for relevant development of point(s)

Evaluation [2] – justified decision

as to which is best option to use
Note: For 6 marks must explain
why chosen method is better than
the other option
Methods could include:
Ways to increase sales:
• Advertising [k] in parenting
magazines [app] which could
increase size of target market [an]
• Lower/increase prices [k] • Widen
target market/increase ages
accepted [k] so one-year-olds can
attend [app]
Ways to cut costs:
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

• Move location [k] but as its is

good location [app] it might lead to
fewer customers [an] • Employ
fewer workers [k] so only have 3
[app] which could help lower wage
costs [an] • Make each worker look
after more children [k] as currently
only look after 3 each [app];
Application marks may be awarded
for appropriate use of the following:
2-5 years, trained staff, good
location, financial loss, 3 children,
toys.
Note: candidates can select 2 ways
to increase sales OR 2 ways to cut
costs OR one of each way
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

19 Identify and explain two 6

advantages to Alkin of using a
joint venture to expand into
country Z.
Knowledge [2 × 1] – identification
of relevant advantage [max 2]
Application [2 × 1] – award 1 mark
for each relevant reference made to
this business
Analysis [2 × 1] – award 1 mark for
each relevant explanation
Relevant points might include:
• Access to new markets [k]
increasing brand awareness [an] of
its range of cereals [app] • Access
to local expertise / ideas [k] e.g.
cultural knowledge as tastes differ
[app] so better able to meet
customer requirements / ensure
sales [an] • Wider range of contacts
/ better access to resources [k] so
might be able to obtain cheaper
ingredients [app] • Increased capital
/ share costs [k] so less risk [an] •
Increased capacity [k] so can meet
expected growth in demand [app]
without affecting supply for other
markets [an] • Way to avoid
government restrictions [k] so able
to maximise potential sales [an] •
Less competition [k] as working
with local business [app] so one less
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

rival [an] • Economies of scale [k]

• Build reputation [k]
Application marks may be awarded
for appropriate use of the following:
multinational company, breakfast
cereals or food, fast-growing
market, local business
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

20 Identify and explain two ways in 4

which legal controls might affect
Gowri’s business.
Knowledge [2×1] – award 1 mark
way identified
Application [2×1] – award 1 mark
for each relevant explanation
Points might include:
• Influence how advertises [k] as
must avoid misleading people about
leather products [app] • Ensure fit
for purpose [k] could be sued /
forced to pay compensation if use
faulty or dangerous materials [app]
• Increase costs / time [k] as must
make sure where bags are made it
is safe to work in [app] •
Employment controls e.g.
Minimum wages [k] could increase
costs for a new business [app] •
Location / planning controls [k] as
might not be able to produce things
in some places [app]
Do not accept shop as application
– makes bags
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

21 Which do you think are the two 6

most important factors for
Burnett to consider when
deciding whether to export its
products? Justify your choices.
Knowledge [1] – award 1 mark for
identification of relevant factor(s)
[max 1]
Application [1] – award 1 mark if
relevant reference made to
Burnett’s business
Analysis [2] – award up to 2 marks
for relevant development of point(s)

Evaluation [2] – justified decision

made as to why each one is an
important factor for Burnett to
consider
Relevant points might include:
• Foreign competition [k] • Size of
overseas market [k] might be
limited demand for the sports shoes
they make for [app] • Quality
standards abroad [k] could means
that have to change how they make
the shoes [app] leading to additional
production costs [an] • Transport
costs [k] as higher costs could
increase break even output [app] •
Barriers to trade [k] so not able to
export as many products as want
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

[an] • Currency
fluctuations/exchange rates [k] as
appreciation of own currency could
make shoes more expensive in
another country [app] leading to
no/fewer customers [an] • Risk of
non-payment by customers overseas
[k] • Different tastes and customs
[k] so customers might like the
leather used[app] Application
marks may be awarded for
appropriate use of the following:
feet sizes, shoes or associated words
such as leather, fabric, sports
played; extra output, exporting for
first time, correct use of numbers
e.g. planned sales 20000
Do not accept references to opening
shops, as this is a manufacturer
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

22 Identify and explain two possible 6 Do not accept packaging

elements of a suitable marketing on its own due to nature
mix for Cutter’s products. of the product [tv].
Accept only one example
Knowledge [2 × 1] – award 1 mark
from each category.
for each relevant element identified.
Application [2 × 1] – award 1 mark
if relevant reference made to Cutter.
Analysis [2 × 1] – award 1 mark for
each relevant explanation.
For each reason: maximum 3 marks
[1k + 1ap + 1an].
Relevant points might include:
• Price/premium pricing/price
skimming [k] as luxury brand [app]
or competitive pricing (to be able
to compete with rivals) or
promotional pricing (to encourage
increase in sales revenue)
• Product/branding [k] so able to
maintain a quality image [app]
which helps retain consumer loyalty
[an]
• Promotion/use of celebrity
endorsement [k], the right choice
of magazines [k] which reinforces
the image of a high quality product
[app]
• Place – only allow coats to be sold
in selective stores [k] to maintain
luxury image [app] which could
allow them to justify charging high
prices [an]
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

23 Anyshade’s Finance manager 6

believes that reducing prices is
the best way to increase sales
revenue. Do you agree? Justify
your answer.
Knowledge [2] – award 1 mark for
identification of relevant issue(s).

Application [1] – award 1 mark if

relevant reference made to
Anyshade.
Analysis [1] – award 1 mark for
relevant development of point(s).

Evaluation [2] – justified decision

made as to whether low prices are
the best way for Anyshade to
increase sales.
Relevant points might include:
• Low prices could make Anyshade
more competitive [k] as paint [app]
is cheaper than competitors so
could increase volume of sales [an]
but there is no guarantee that sales
will increase [eval] • Competitors
reaction might lead to a price war
which could result in fewer sales
[k] if rivals offer better promotions
[an] • Price might not be reason
why buy [k] as known for quality
[app] so lower price might be seen
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

as lower quality so fewer people

want to buy [an] • The business
does not know why people buy
paint [k] so lower prices might not
affect its sales revenue [an] • It
depends on the price elasticity of
demand • Awareness of other issues
affecting sales such as promotion,
place could be discussed
Note: If candidate takes the view
that reducing prices is not the best
strategy, explains alternative
strategies but does NOT discuss the
advantages and/or disadvantages of
reducing prices then max of 4
marks (with no marks for
evaluation).

[Total: 114]