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Past Paper Questions

Past Paper Questions. Higher and Intermediate 2 Business Management. Marketing – Role and Importance . HIGHER 2005 Q5C( i ) Explain why organisations choose to spend large sums of money on marketing . (5) INTERMEDIATE 2 2011 Q 2b(i)

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Past Paper Questions

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  1. Past Paper Questions Higher and Intermediate 2 Business Management

  2. Marketing – Role and Importance • HIGHER • 2005 Q5C(i) • Explain why organisations choose to spend large sums of money on marketing. (5) • INTERMEDIATE 2 • 2011 Q 2b(i) • Describe the role of the marketing department in an organisation. • (4)

  3. Higher – 2005 Q5c

  4. Int 2 – 2011 Q2B • (b) (i) Describe the role of the Marketing Department in an organisation. • To raise awareness of products and services on offer. • To raise the profile of an organisation. • To encourage customers to purchase. • To target new customers and retain old ones. • To find out what the customer wants. • To monitor changing tastes and trends in the market. • To find the correct price for the product. • To find the right place to sell the product through. • 1 mark for describing a role • (4)

  5. Marketing – segmentation & PL/mL • HIGHER • 2006 SQP (1di&ii) • Identify two means by which an organisation can segment its market. (2) • Explain the benefits of market segmentation to a firm and its customers. (4) • INTERMEDIATE 2 • Identify 3 ways an organisation can segment its market. (3) • 2010 Q1b • Describe the following terms and give an example of each. • Product-led • Market-led (4)

  6. Higher 2006 Q1d • (d) Market segmentation is used by car manufacturers. • (i) Identify 2 means by which an organisation can segment its market. • Age, gender, religion, socio-economic grouping, family characteristics, • income, occupation, ethnic grouping. • (ii) Explain the benefits of market segmentation to a firm and its customers. • Products can be varied to suit the different market segments. • Marketing can be targeted more specifically to the different groups. • Prevents wasteful promotions targeted towards the wrong people. • A wider range of differentiated products may be offered. • Allows appropriate prices to be set. • Ensures products are sold in the appropriate places for the target • market.

  7. Int 2 2010 Q1b • Describe the following terms and give an example of each: • • product-led organisation. • • market-led organisation. • Product-led • • Organisation assumes their product or service is the best. • • Little to no competition for the product or service. • • Product may be unique. • • No or little market research is conducted – meeting consumer needs not paramount. • • Product research and testing are key elements. • • Example – universities, Concord, Dyson. • Market-led • • Consumer needs are central to decision making. • • Market research and market testing are key elements. • • Organisation changes product quickly in response to changes in consumer demand. • • Success depends on meeting consumer needs. • • Common type of organisation in a competitive market. • • Example – organisation who produce cereals, cars, fashion goods etc. • 1 mark per described point – max 2. 1 mark per example.(4)

  8. Marketing – Research • HIGHER • 2004 Q2d (i) • A sports good manufacturer is considering introducing a new range of trainers. • Describe and justify 3 methods of field research which would tell them whether or not this proposal is viable (6) • INTERMEDIATE 2 • 2009 Q2f • Describe the following methods of market research and give an example of each: • Desk • Field (4)

  9. Higher 2004 Q2D(i) • personal interview involves interviewing person in the street or at home • street responses briefer than those obtained from home interviews • allows 2 way communication • mistakes and misunderstandings can be clarified immediately

  10. Higher 2004 Q2D(i) • telephonesurvey where questions are asked on the phone • immediate response a large number of people can be sampled quickly relatively inexpensive • questionnaires sent by post/internet or questions asked over phone • relatively inexpensive to carry out - no need for trained interviewer because everyone asked same questions the information is easy to • collate questions designed to gather what you want to know

  11. Int 2 2009 Q2f • (f) Describe the following methods of market research and give an example of each. • Desk research • Research carried out at a researcher’s desk using secondary (second-hand) information. • eg newspaper articles, government statistics, staff records, old surveys etc(2) • Field research • Research carried out ‘in the field’ in order to obtain primary (first hand) information. • eg questionnaires, telephone surveys, face to face interviews etc(2)

  12. Marketing - research • HIGHER • 2001 Q1b • Carrying out market research does not necessarily guarantee success in the market. Why might information gathered by an organisation be of little use to them? (5) • INTERMEDIATE 2 • 2008 Q3d • Describe two advantages and two disadvantages of face to face interviews by market researchers. (4)

  13. HIGHER 2001Q1b • Information has to be: • Accurate – otherwise wrong decisions can be made • Timely – must be up-to-date to provide the optimum decision • Complete – possibility of wrong decisions/time-consuming collecting data • Available – access to all information must be convenient • Appropriate – if it is not relevant, wrong decision may be made • Cost-effective – should not be expensive to obtain • Objective – must be free from bias/prejudice • Concise – brief or the point is lost

  14. Int 2 2008 Q3d • (d) Describe 2 advantages and 2 disadvantages of face to face interviews by market researchers. • Advantages • • Allows two-way communication. • • Misunderstandings can be dealt with immediately. • • Body language. • Disadvantages • • Can be expensive as interviewers have to be trained. • • Sometimes people don’t tell the truth as they are in a hurry. • • Many people refuse to take part. • • May not give you all the information you require.

  15. Marketing – Sampling • HIGHER • 2004 Q2d (ii&iii) • A sports good manufacturer is considering introducing a new range of trainers. • Describe the difference between random and quota sampling. (2) • The manufacturer chose quota sampling rather than random sampling when conducting the research. Justify the choice of quota sampling. (1) • INTERMEDIATE 2 • 2011 Q2b(ii) • Identify and describe 2 methods of sampling the Marketing Department could use. (4)

  16. Higher 2004 Q2d(ii & iii)

  17. Int 2011 Q2b(ii)

  18. Marketing – product (Branding) • HIGHER • 2009 Q3C • Discuss the effects on an organisation of branding their products. (6) • INTERMEDIATE 2

  19. MODEL Answer • One possible effect that is that products are instantly recognisable which may mean that consumers are more likely to purchase them. It can build up brand loyalty which will mean that customers are less likely to go elsewhere. Due to it be recognisable it is perceived to be of a high quality so people will be willing to pay more money for the product. It is easier for the company to launch new products on the market because the brand is so well known. It can cost the company a lot of money as building up a brand can be an expensive process. If there is bad publicity for one of the products this may effect the whole range of products and may reduce sales.

  20. Higher 2009 Q3c

  21. Marketing – product Life cycle • HIGHER • 2011 Q2d (ii) • Describe the stages that a product might go through prior to being launched onto the market (5) • 2002 Q3b • Why do firms spend vast sums of money on product innovation. (3) • INTERMEDIATE 2 • 2011 Q1e • Identify and describe 3 stages of the product life cycle. (6)

  22. Higher 2011 q2d(ii)

  23. Int 2 2011 q1e

  24. Marketing – product Life cycle • HIGHER • 2009 Q3d • Explain how extension strategies can extend the life of a product (6) • INTERMEDIATE 2 • 2008 Q1b • Suggest 3 ways a producer might extend the life cycle of a product. (3) • 2008 Q1a • Draw and label a diagram showing the stages of a product’s life cycle. (5)

  25. Higher 2009 Q3d

  26. Int 2 2008 Q1a&b

  27. Marketing – product (mix) • HIGHER • 2002 Q1d • Discuss the factors which would contribute towards a good product mix for an organisation. (5) • INTERMEDIATE 2

  28. Marketing – price • HIGHER • 2003 Q2b • Describe the types of strategies an organisation might use when pricing a new product. (6) • INTERMEDIATE 2 • 2010 Q4b • Describe pricing methods that an organisation could use. (4) • 2008 Q5a • Identify and describe 2 pricing strategies. (4)

  29. MODel Answer • One type of pricing strategy that may be used is high pricing, this is when the firm can sell a product for a higher price than the competition. This may be used to allow the product to have an exclusive look and a perceived high quality. Another form of pricing may be penetration pricing, this is when the price is set below that of other companies. This would be used in a highly competitive market in order to attract customers from competition. Another form of pricing is price skimming, this is when a high price is initially set. Once competition begins to enter the market place and the market becomes saturated prices are then lowered.

  30. Higher 2003 Q2b

  31. Int 2 2010 q4b

  32. Int 2 2008 q5a

  33. Marketing – PLace • HIGHER • 2004 Q3c • Discuss the advantages and disadvantages of supplying customers directly, compared with supplying to: • Retailers • Wholesalers • for both the manufacturer and customer. (8) • INTERMEDIATE 2 • 2011 Q4a(i) • Describe 3 channels of distribution which an organisation could use. (3)

  34. Higher 2004 Q3c

  35. Int 2 2011 q4a

  36. Marketing - place • HIGHER • 2002 Q5a • Discuss the factors which must be considered when deciding on the most effective channel of distribution (7) • INTERMEDIATE 2 • 2011 Q4a(ii) • Outline factors that might be considered when choosing a channel of distribution. (3)

  37. Int 2011 Q4a(ii)

  38. Marketing – promotion • HIGHER • 2006 SQP Q3b • Describe 3 promotional techniques which an organisation might use to boost sales in quieter periods (3) • INTERMEDIATE 2 • 2010 Q5B • For each element of the marketing mix, describe 2 activities an organisation could undertake to increase sales. (8)

  39. Higher 2006 SPQ Q3B

  40. Int 2 2010 q5b

  41. Marketing – promotion • HIGHER • 2007 Q3c • Manufacturers use short term promotional measures to boost sales of products to retailers (into the pipeline promotions). Identify and describe two of these measures. (4)

  42. Higher 2007 Q3c

  43. Marketing – Public relations • HIGHER • 2003 Q1b • Companies see creating a good reputation as an important objective. Describe the role of the PR Officer in achieving such an objective. • (5) • INTERMEDIATE 2

  44. Higher 2003 Q1b

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