IGCSE Cambridge (CIE) Business Past Paper 2023 PDF

IGCSE Cambridge (CIE) Business 4 hours 40 questions Exam Questions 3.3 The Marketing Mix Product: Products & Brand Image / Product: The Product Life Cycle / Price: Types of Pricing Methods / Price: The Significance of Price Elasticity of Demand / Place...

IGCSE Cambridge (CIE) Business 4 hours 40 questions Exam Questions 3.3 The Marketing Mix Product: Products & Brand Image / Product: The Product Life Cycle / Price: Types of Pricing Methods / Price: The Significance of Price Elasticity of Demand / Place: Types of Distribution Channels / Promotion / Technology & The Marketing Mix Easy (12 questions) /34 Scan here to return to the course or visit savemyexams.com Medium (20 questions) /128 Hard (8 questions) /96 Total Marks /258 © 2025 Save My Exams, Ltd. Get more and ace your exams at savemyexams.com 1 Easy Questions 1 Define ‘cost-plus pricing’. (2 marks) 2 Case Study PJA make fashion clothing for 16-25 year olds. Many of its competitors are multinational companies. PJA produce new products every 3 weeks. All PJA’s products are made in a local factory because of import quotas. The Managing Director is reviewing PJA’s financial statements using ratio analysis. An extract is shown in the table below. Extract from PJA’s financial statements for 2020 Revenue ($m) 7 400 Gross profit ($m) 3 330 Profit ($m) 1 100 Current ratio 1.5 Return on Capital Employed (ROCE) 8% Outline one benefit and one limitation to PJA of developing new products. © 2025 Save My Exams, Ltd. Get more and ace your exams at savemyexams.com 2  (4 marks) 3 Case Study Tom started ALB 5 years ago making trainers (sneakers) out of sustainable materials such as wool. One of ALB’s objectives is to protect the environment. As part of his research, Tom calculated some costs that he could use in his break- even analysis. An extract is shown in Figure 2.1. ALB uses retailers to distribute its products. Tom thinks a successful entrepreneur has to be a good manager. Outline two possible advantages to ALB of using retailers to distribute its products. (4 marks) © 2025 Save My Exams, Ltd. Get more and ace your exams at savemyexams.com 3 4 Identify one benefit and one cost to a business of developing new products. (2 marks) 5 Define ‘competitive pricing’. (2 marks) 6 State two elements of the marketing mix. (2 marks) 7 Case Study Paolo wants to start up a business making cakes. He plans to sell all of his products to a wholesaler. Paolo knows the packaging for his products will be important. He has prepared some financial and sales data. An extract from this data is shown in the below table. Paolo is considering using crowdfunding as a source of finance. He knows the business will also need working capital. Extract from Paolo’s financial and sales data Average price per cake $6 Average cost per cake $4 Forecast average number of cake sales per day 50 © 2025 Save My Exams, Ltd. Get more and ace your exams at savemyexams.com 4  Outline two reasons why packaging will be important for Paolo’s business. (4 marks) 8 Case Study LCT manufactures cooking pots. It has 16 employees. As a small business, LCT uses social media as its method of advertising. The owner, Carole, knows having a good brand image is important. She is analysing LCT’s break-even chart. This is shown in Fig. 2.1. Carole is considering possible ways to lower LCT’s break-even level of output. Outline two possible benefits to LCT of having a good brand image. © 2025 Save My Exams, Ltd. Get more and ace your exams at savemyexams.com 5  (4 marks) 9 Define ‘brand image’. (2 marks) 10 Define ‘marketing mix’. (2 marks) 11 Define ‘marketing budget’. (2 marks) 12 Case Study Pamela is a successful entrepreneur. She is the owner of a gift shop selling celebration cards, toys and candy (sweets). When Pamela started her business 30 years ago she had no help to manage the shop. She now has 5 employees. Pamela knows maintaining customer loyalty is important. She uses competitive pricing. Most of her marketing budget is spent on sales promotion. Pamela does not use e-commerce. Outline two possible threats to Pamela’s business of using e-commerce. © 2025 Save My Exams, Ltd. Get more and ace your exams at savemyexams.com 6  (4 marks) © 2025 Save My Exams, Ltd. Get more and ace your exams at savemyexams.com 7 Medium Questions 1 Case Study Raul owns a small farm that grows oranges. His farm is based in country Z. Like all primary sector activities, farming creates external costs and external benefits. Raul sells all 600 tonnes of his oranges direct to a drinks manufacturer in country E. The Government of country E plan to introduce either import tariffs or quotas. Raul said: ‘This might help country E’s Government achieve one of its economic objectives but how will it affect companies that export to country E?’ Explain two advantages to Raul’s business of selling direct to a manufacturer. (6 marks) 2 Explain one cost and one benefit for PPE of developing a new product. Refer to the following insert when answering the question. © 2025 Save My Exams, Ltd. Get more and ace your exams at savemyexams.com 8  (8 marks) 3 Do you think cost-plus is the best pricing method for a new business to use when selling products to a niche market? Justify your answer. (6 marks) 4 Do you think giving out free samples is the best method of sales promotion for a business to use when promoting a new food product? Justify your answer. (6 marks) © 2025 Save My Exams, Ltd. Get more and ace your exams at savemyexams.com 9 5 Do you think using wholesalers is the best way for a large business to distribute its products? Justify your answer. (6 marks) 6 Do you think competitive pricing is the best method for an established business to use? Justify your answer. (6 marks) 7 Case Study CHW manufactures electrical products including cameras. The business is developing new products. The Managing Director knows that the stage of the product life cycle can influence CHW’s marketing decisions about promotion. He © 2025 Save My Exams, Ltd. Get more and ace your exams at savemyexams.com 10  is analysing data for one of its products. An extract is shown in the table below. The business would also like to introduce flow production into the factory. Extract from CHW’s data for one type of camera (2021) Selling price per unit ($) 120 Variable cost per unit ($) 40 Fixed costs ($) 200 000 Margin of safety (units) 500 Explain two ways in which the stage of the product life cycle might affect CHW’s marketing decisions about promotion. (6 marks) 8 Explain four ways Yasin can advertise MB’s products. Refer to the following insert when answering the question. © 2025 Save My Exams, Ltd. Get more and ace your exams at savemyexams.com 11  (8 marks) 9 Do you think adding new features to a product is the best extension strategy for a manufacturing business to use? Justify your answer. (6 marks) 10 Case Study Kemala makes high-quality beauty products. Demand for her best-selling hand cream is price inelastic. She advertises her products in specialist beauty magazines. Kemala is analysing her income statement. An extract is shown in the table below. She said: ‘When I started my business, I did not understand why cash is important’. Extract from Kemala’s income statement 2021 ($000) Revenue 480 Gross profit 192 Profit for the year 72 © 2025 Save My Exams, Ltd. Get more and ace your exams at savemyexams.com 12  Explain two possible reasons why demand for Kemala’s best-selling product is price inelastic. (6 marks) 11 Explain four roles of packaging for CC’s products. Refer to the following insert when answering the question. (8 marks) 12 Do you think retailers are the best channel of distribution for a manufacturing business to use? Justify your answer. © 2025 Save My Exams, Ltd. Get more and ace your exams at savemyexams.com 13  (6 marks) 13 Case Study NLR manufactures a range of branded skincare products including hand cream. Packaging of the products is important. Like many businesses, NLR makes use of market segmentation. The Marketing Director knows the stage of the product life cycle can influence NLR’s pricing decisions. He is analysing market research data. This shows 85% of consumers expect businesses to respond to environmental pressures. Explain how NLR’s pricing decisions might be affected at two different stages of the product life cycle. (6 marks) © 2025 Save My Exams, Ltd. Get more and ace your exams at savemyexams.com 14 14 Do you think selling to a wholesaler is the best channel of distribution for a start-up business to use? Justify your answer. (6 marks) 15 Do you think social media is the best method of advertising for a small business to use? Justify your answer. (6 marks) 16 Explain two limitations and two benefits to a business of developing new products. © 2025 Save My Exams, Ltd. Get more and ace your exams at savemyexams.com 15  (8 marks) 17 Case Study GBU is a public limited company. It makes a range of beauty products including shampoo and soaps for the mass market. Last year GBU’s revenue fell. The Marketing Director has been looking at some results from its primary market research. It was based on a sample of 2000 people, see Fig. 4.1. She believes maintaining customer loyalty is more important than attracting new customers. Fig 4.1 Explain two advantages to GBU of using shops as a channel of distribution. © 2025 Save My Exams, Ltd. Get more and ace your exams at savemyexams.com 16  (6 marks) 18 Case Study Gino owns a fast-food restaurant selling fried chicken and potato fries. He employs 5 full-time chefs and 12 part-time workers to serve the food. Communication is important and Gino has regular meetings with his part-time employees to keep them informed about any changes in the menu. It took 3 years before Gino’s business was able to break-even. He aims to achieve a Return on Capital Employed (ROCE) of 10%. Gino is always looking for ways to increase the number of customers. Inflation may be a problem for Gino’s business. Explain two ways Gino could increase the number of customers. (6 marks) 19 Do you think advertising in specialist magazines is the best way for a business to promote high-quality products? Justify your answer. © 2025 Save My Exams, Ltd. Get more and ace your exams at savemyexams.com 17  (6 marks) 20 Do you think promoting the brand image is the most important role of packaging? Justify your answer. (6 marks) © 2025 Save My Exams, Ltd. Get more and ace your exams at savemyexams.com 18 Hard Questions 1 Consider the advantages and disadvantages of the following three sales promotion methods Gemma could use for the new shop. Buy one, get 50% off second purchase 10% off everything in the shop for one week after opening Pay a celebrity to open the shop Recommend which method Gemma should choose to maximise revenue. Justify your answer. Refer to the following insert when answering the question. (12 marks) © 2025 Save My Exams, Ltd. Get more and ace your exams at savemyexams.com 19 2 Consider the advantages and disadvantages to FO of using a wholesaler, retailer or selling direct to the customer when distributing its products. Which channel of distribution should FO use? Justify your answer. Refer to the following insert when answering the question. (12 marks) 3 Consider the opportunities and threats of e-commerce for SA. Which is likely to have the greatest effect on SA? Justify your answer. Refer to the following insert when answering the question. © 2025 Save My Exams, Ltd. Get more and ace your exams at savemyexams.com 20  (12 marks) 4 Consider the advantages and disadvantages of the two CC brands. Which brand should CC stop producing? Justify your answer. Refer to the following insert when answering the question. © 2025 Save My Exams, Ltd. Get more and ace your exams at savemyexams.com 21  (12 marks) 5 Using Appendix 3 and other information, consider the three options for the future growth of SA. Which option should Tokumbo choose? Justify your answer using appropriate calculations. Refer to the following insert when answering the question. (12 marks) © 2025 Save My Exams, Ltd. Get more and ace your exams at savemyexams.com 22 6 Consider the advantages and disadvantages of the following two options for SSE to distribute its products in the new markets in other countries. Sell direct to customers using SSE’s website Sell to large sports retailers in other countries Which option should SSE choose? Justify your answer. Refer to the following insert when answering the question. (12 marks) © 2025 Save My Exams, Ltd. Get more and ace your exams at savemyexams.com 23 7 Consider the following three elements of a suitable marketing mix for CC’s new range of personalised mobile phone covers. Pricing method Method of promotion Place - distribution channel Justify which element is the most important. Refer to the following insert when answering the question. (12 marks) © 2025 Save My Exams, Ltd. Get more and ace your exams at savemyexams.com 24 8 Consider the following three pricing methods PPE could use when launching its new product. Cost-plus Penetration Skimming Which pricing method should it use? Justify your answer. Refer to the following insert when answering the question (12 marks) © 2025 Save My Exams, Ltd. Get more and ace your exams at savemyexams.com 25