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14 The Marketing Mix - Place - Sample Answers To Short Answer and Data Response Question 2

Business studies answers

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185 views2 pages

14 The Marketing Mix - Place - Sample Answers To Short Answer and Data Response Question 2

Business studies answers

Uploaded by

khunshaamjad17
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© © All Rights Reserved
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Cambridge IGCSE™ and O Level Business Studies

Section 3: Marketing Chapter 14: The marketing mix –


Place

Sample answers to exam-style


questions: Short answer and data
response
The answers, marks awarded and comments that appear in this material were written by the authors. In
examination, the way marks would be awarded to answers like these may be different.

2
a A wholesaler performs the function of ‘breaking bulk’ [1], which means the wholesaler buys
products from manufacturers in large quantities and then divides up the stock into much
smaller quantities for retailers to buy [1].
b
i Higher price to buy the clothes than if purchased directly from the manufacturer [1].
ii Restricted choice for Pinkor as the wholesaler may not stock a wide range of children’s
clothes [1].
c Possible answers:
i It allows customers to see the clothes and try them on straight away [1], which means that
Pinkor is likely to have higher sales of clothes if customers are happy with the quality of
the clothes sold [1].
ii Smaller shops can meet the needs of local customers [1] and sell the styles of children’s
clothes that are in demand locally and therefore may increase profits [1].
1 mark for each relevant benefit (maximum of 2 marks).
1 mark for each relevant reference to this business (maximum of 2 marks).
d Possible answers:
i If the clothes are marketed as being expensive and of high quality [1], they will probably
be sold through just a limited number of the shops with knowledgeable sales staff [1].
These shops will be in expensive shopping areas [1].
ii If most of the customers are spread over a wide area of the country, it is no good Pinkor
having just a few shops because many potential customers will live a long way away
from these shops [1]. The internet might be used for online trading so that more
customers can be reached [1] rather than selling only to those customers who can visit
their shops [1].
1 mark for each relevant point (maximum of 2).
1 mark for each relevant reference made to this business (maximum of 2).
1 mark for each relevant explanation (maximum of 2).

Cambridge IGCSE™ and O Level Business Studies Online Teacher Guide, Hodder & Stoughton Ltd 1
© Karen Borrington and Peter Stimpson 2018
Cambridge IGCSE and O Level Business Studies Chapter 14 Answers to exam‐style questions

e Answers might include:


Yes: it is possible a different market segment that buys children’s clothes using the internet
and a wider market of parents can be reached. This will mean there could be an increased
number of sales made.
No: customers might want to try on the clothes and if they buy on the internet then postage
costs for returned clothes might be high.
Student’s overall conclusion, e.g. If the cost of operating the shops becomes too high then a
switch to mail order or internet selling is advisable as this will allow him to keep prices low
– a major factor in the competitive market for children’s clothes.
Up to 2 marks for identification of relevant issues.
Up to 2 marks for relevant development of points.
Up to 2 marks for justified decision.

Cambridge IGCSE™ and O Level Business Studies Online Teacher Guide, Hodder & Stoughton Ltd 2
© Karen Borrington and Peter Stimpson 2018

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