AQA A-Level Business: Marketing management (7132) – Practice Questions

These are original questions written for Marlbridge, for revision and practice on this content. They are not reproduced past-paper questions, and they do not replicate the exam’s exact structure, question count or mark tariffs – examination boards hold copyright in their own papers. Use these alongside the official past papers from your board or school.

These questions cover the marketing section (3.3.1 to 3.3.4 in the specification text) of the AQA AS and A-level Business specification (7131/7132), for A-level Business (7132). All businesses and figures are invented. Read the study guide and revision notes first, and see the AQA A-Level Business hub and the checklist.

Questions

1. Identify two marketing objectives a business might set. [2]

2. Tavernby Footwear sold £12.6m of shoes in a market worth £150m. A year later the market was worth £165m and Tavernby sold £14.85m. Calculate the market growth, the sales growth and Tavernby’s market share in each year. [5]

3. Explain one advantage and one limitation of secondary research for a business entering a new market. [4]

4. Hexbridge Gyms asked 80 members whether they would pay for an evening yoga class. 45% said yes. Explain why the managers should be cautious about using this result to forecast demand. [4]

5. Fentonby Print recorded the price of a photo mug and the units sold in five weeks.

Price (£)	5	6	7	8	9
Units sold	90	82	75	61	55

Describe the correlation, then explain why extending the trend to a price of £15 would be unwise. [4]

6. Salterbeck Helmets sells 4,000 helmets a month at £60. Its research suggests price elasticity of demand of −0.5. It plans a 10% price rise. Analyse the effect on monthly revenue. [5]

7. Incomes are forecast to rise 4%. A tinned food maker has income elasticity of demand of −0.8; a cruise company has +2.5. State the change in demand for each firm and the type of good. [4]

8. Hexbridge Gyms is considering targeting people over 60 with daytime classes rather than mass marketing to all adults. Explain two segmentation methods it could use and evaluate the niche approach. [6]

9. Fentonby Print’s products are below. Treat relative share above 1 and market growth above 5% as high.

Product	Own share	Largest rival	Market growth
Photobooks	22%	11%	14%
Calendars	28%	14%	1%
Greeting cards	4%	20%	9%
Posters	3%	12%	−2%

Calculate each relative share, classify each product on the Boston Matrix and recommend an action for the portfolio. [7]

10. Craigholt Audio will launch a smart speaker costing £45 a unit to make. It can use price skimming at £140 or penetration pricing at £85. Calculate the profit margin per unit under each, and justify which it should choose. [8]

11. Tavernby Footwear sells through twelve shops and wants to add a website. Its target market is shoppers aged 25 to 40 who compare brands on quality. Its brand is positioned as mid-priced and dependable. Evaluate how it should adjust its marketing mix, including people, process and physical environment, for multi-channel selling. [12]

Answers

1. Any two of: sales volume, sales value, market size, market growth, sales growth, market share, brand loyalty [2] [2] Examiner insight: A short identify question rewards precise, listed terms; vague phrases such as “sell more” are weaker than a named objective.

2. Market growth = 15 ÷ 150 × 100 = 10% [1]; sales growth = 2.25 ÷ 12.6 × 100 = 17.9% [1]; share before = 12.6 ÷ 150 = 8.4% [1]; share after = 14.85 ÷ 165 = 9.0% [1]; Tavernby grew faster than the market, so it gained share [1] [5] Examiner insight: Show each formula with figures; a bare final number gives the marker little to reward if an arithmetic slip occurs, and the comparison of the two growth rates shows interpretation.

3. Advantage: cheaper and quicker than gathering new data [1], because the data already exists (for example, published industry reports) [1]. Limitation: may be out of date or not designed for this firm’s question [1], so the firm may base decisions on irrelevant figures [1] [4] Examiner insight: “Explain” calls for a point plus a developed reason; naming an advantage alone usually leaves marks unclaimed.

4. The sample is small (80), so sampling error is large [1]; the 45% is only an estimate, and a confidence interval would be wide (roughly 34% to 56%) [1]; members may not represent non-members or future customers [1]; saying yes is not the same as paying, so demand could be lower [1] [4] Examiner insight: Strong answers link caution to sample size and representativeness and state what the result cannot show, not just that it is “unreliable”.

5. Strong negative correlation: as price rises, units fall, and the points lie close to a downward line [2]; extrapolating the trend (about 9 fewer units per £1) gives a negative figure of sales at £15, which is impossible [1]; the data cover only £5 to £9, and demand behaviour outside that range is unknown [1] [4] Examiner insight: Describe both direction and strength; marks for the limitation come from applying it to the stated £15, not from a generic comment.

6. Quantity change = −0.5 × 10 = −5%, so 3,800 helmets [1]; new price £66 [1]; old revenue = 4,000 × 60 = £240,000 [1]; new revenue = 3,800 × 66 = £250,800 [1]; demand is inelastic, so the rise increases revenue by 4.5% (£10,800) [1] [5] Examiner insight: “Analyse” needs a chain from elasticity to quantity to revenue; stating only that inelastic demand means revenue rises, without figures, is thinner.

7. Tinned food: −0.8 × 4 = −3.2% [1], an inferior good [1]. Cruise: 2.5 × 4 = +10% [1], a luxury-type normal good (YED above 1) [1] [4] Examiner insight: Pair the number with its classification; the sign of the value is what separates inferior from normal goods.

8. Demographic: age (over 60) defines the segment [1]; behavioural: daytime use, since many may be retired and visit off-peak [1]. Niche benefit: less direct competition and a tailored mix may build loyalty [1]. Limit: a smaller market and risk if the segment changes or rivals copy [1]. Judgement: worthwhile if the segment is large enough locally to cover costs and uses off-peak capacity [2] [6] Examiner insight: Name the method and tie it to the case; a judgement needs a condition or reason, not just “it depends”.

9. Relative shares: photobooks 22 ÷ 11 = 2.0; calendars 28 ÷ 14 = 2.0; cards 4 ÷ 20 = 0.2; posters 3 ÷ 12 = 0.25 [2]. Photobooks: star; calendars: cash cow [1]; greeting cards: question mark; posters: dog [1]. Recommendation: use calendar cash to invest in photobooks [1]; build or drop greeting cards depending on cost of lifting share, and consider withdrawing posters [1], giving a balance of cash generators and future earners [1] [7] Examiner insight: Show the relative share working, then use the classifications to make a portfolio decision rather than only labelling.

10. Skimming margin = 140 − 45 = £95 (67.9%) [1]; penetration margin = 85 − 45 = £40 (47.1%) [1]. Skimming: high margin recovers development costs and suits a new product with few rivals [2], but may limit sales and attract competitors [1]. Penetration: builds share and brand loyalty quickly, but low margin and difficult to raise later [2]. Judgement: for a distinctive product, skimming then lowering; if rivals are strong, penetration [1] [8] Examiner insight: A justified choice weighs both options and ties the decision to the product, rivals and objectives.

11. Product: keep the quality focus and make the online range consistent with the shops [1], so the dependable image carries across channels [1]. Price: align shop and web prices or explain differences, as comparing shoppers will notice [1]; dynamic pricing risks harming a dependable image [1]. Promotion: social media and search aimed at 25 to 40s [1]. Place: multi-channel adds reach, but stock systems must link shops and web [2]. People: shop staff trained to handle web orders and returns [1]. Process: easy ordering, delivery and returns [1]. Physical environment: website design matching the brand and shops consistent [1]. Judgement: success depends on integrating the mix and funding the systems, since poor process would damage a dependable brand more than a missing channel [2] [12] Examiner insight: A long evaluation needs a reasoned conclusion that refers to the target market and positioning in the stem, not a list of the 7Ps.

Where marks are usually lost

• Dividing by the new figure instead of the original when finding growth.
• Mixing units, such as £m with £.
• Giving a result without saying whether the firm gained or lost share.
• Saying correlation proves cause.
• Explaining a limitation of a sample without linking it to the case.
• Using absolute share on the Boston Matrix.
• Recommending without linking to objectives, target market or positioning.
• Evaluating with a conclusion that does not follow from the points made.

Next steps

• Review the revision notes and the study guide.
• Check your coverage on the AQA A-Level Business checklist and the course hub.
• Try the free 10-minute diagnostics.
• Book a free trial class at /trial/.

Frequently asked questions

How do you calculate market growth in AQA Business? Market growth (%) = change in market size ÷ original market size × 100. Dividing by the new figure instead of the original is one of the most common errors.

How do you tell whether a firm gained market share from growth figures? Compare the firm’s sales growth with market growth: if sales grew faster than the market, share rose; if slower, share fell. Always state whether the firm gained or lost share.

Which share figure does the Boston Matrix use? The Boston Matrix uses relative market share, the firm’s own share divided by the largest rival’s share, plotted against market growth. Using absolute share is a frequent mistake.

Do you need to calculate elasticity in AQA 7132? The specification says you must interpret price and income elasticity of demand and analyse the effect on revenue, but you do not need to calculate elasticity itself.

Official syllabus

AQA AS and A-level Business specification (7131 and 7132), section 3.3 Decision making to improve marketing performance, published by AQA.