Question 1

What is the difference between primary and secondary market research?

Accepted Answer

Primary research is data collected first-hand for a specific purpose, like surveys or interviews. It is tailored but time-consuming and expensive. Secondary research uses existing data from sources like government reports, websites, or internal sales data. It is cheaper and quicker but may not be specific to the business's needs. In exams, you need to recommend which type is best for a given scenario.

Question 2

How do I choose the right pricing strategy for a business?

Accepted Answer

It depends on the business's objectives and market conditions. Penetration pricing (low price) is used to enter a competitive market quickly. Skimming (high price) works for innovative products with little competition. Competitive pricing sets prices similar to rivals. Cost-plus pricing adds a markup to costs. Always justify your choice with reasons from the case study, e.g., 'The business wants to gain market share, so penetration pricing would attract price-sensitive customers.'

Question 3

What is market segmentation and why is it important?

Accepted Answer

Market segmentation divides a broad market into smaller groups with similar needs, e.g., by age, income, or location. It allows a business to tailor its marketing mix to specific segments, making marketing more effective and cost-efficient. For example, a luxury car brand targets high-income individuals with premium advertising, while a budget brand targets students with affordable prices and social media ads.

Question 4

How does the product life cycle affect marketing decisions?

Accepted Answer

In the introduction stage, marketing focuses on building awareness through promotion and possibly low prices. During growth, the business may expand distribution and maintain promotion. In maturity, marketing aims to defend market share with loyalty schemes or product variations. In decline, the business may reduce promotion and cut prices to clear stock. Each stage requires a different marketing mix.

Question 5

What is a USP and why is it important?

Accepted Answer

A Unique Selling Point (USP) is a feature that makes a product different from competitors, like Dyson's bagless vacuum technology. It helps a product stand out, attract customers, and justify a higher price. In exams, you might be asked to suggest a USP for a product, such as 'organic ingredients' for a food brand.

Question 6

How do I evaluate a marketing campaign in an exam?

Accepted Answer

Use the 4Ps framework to analyse each element. Consider the campaign's strengths (e.g., targeted promotion) and weaknesses (e.g., high cost). Link to business objectives: did it increase sales or brand awareness? Use evidence from the case study. Finally, give a reasoned judgement: 'Overall, the campaign was effective because it reached the target audience and boosted sales by 15%, but the high cost may reduce profits.'

Marketing

Topic Overview

Key Concepts

What You Need to Demonstrate

Marking Points

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Common Mistakes

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Related Topics in WJEC GCSE Business

Business activity

Business operations

Finance

Human resources

How to Revise Marketing — WJEC GCSE Business

Examiner Tips for Marketing

Common Mistakes in Marketing

Key Marking Points