AQA AS-Level Business: Marketing management (7137) – 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 section 3.1.3 Marketing management of the AQA AS and A-level Business specification (7137 and 7138, version 1.1, November 2025). All businesses and figures are invented. Formulas follow the specification where it gives them; click-through rate, conversion rate, sales growth, index numbers and return on marketing spend use standard forms. Related pages: the study guide, the revision notes, the AQA AS Business hub, the checklist and the free diagnostics.

Questions

1. Identify the type of market (B2B, B2C or C2C) in each case: (a) a firm supplying uniforms to hotels; (b) individuals selling used bicycles to each other through an app; (c) a bakery selling bread to walk-in shoppers. [3]

2. Lathrigg Bakes sold £25.2m in a regional market worth £210m. A year later the market was worth £231m and Lathrigg sold £29.4m.

(a) Calculate the growth of the market. [2] (b) Calculate Lathrigg’s market share in the later year, to 1 decimal place. [2] (c) Calculate Lathrigg’s sales growth, to 1 decimal place, and comment on what it shows about its share. [3]

3. Rilbury Rugs raised the price of a rug from £80 to £88. Monthly sales fell from 2,000 rugs to 1,700 rugs.

(a) Calculate PED for the rug. [2] (b) Calculate the change in revenue, as a percentage. [3]

4. When average incomes rose by 6%, demand for Orbellow Gadgets’ smart speaker rose by 9%, while demand for its basic radio fell by 3%.

(a) Calculate the income elasticity of demand for each product. [2] (b) Explain what each value shows about the type of good. [2]

5. Harlsey Gym measures yearly membership revenue at three sites against a base year.

Site	Base year	Latest year
East	£84,000	£96,600
West	£60,000	£58,200
Central	£72,000	£79,200

(a) Calculate an index number for each site, with the base year as 100. [3] (b) A recruitment campaign cost £15,000 and the profit from marketing activities was £9,000. Calculate the return on marketing spend. [2]

6. Hobsley Foods surveys 300 customers. 55% say they would buy a new soup. The researcher reports a 95% confidence level and an interval of 49% to 61%. The launch needs at least 50% of customers to buy. Explain what the interval means for the decision and how it could be narrowed. [4]

7. Ashkelder Outdoors sells walking boots to keen hill walkers who value sustainable brands and who buy twice a year.

(a) Identify two bases of segmentation shown. [2] (b) Explain one disadvantage of operating in a niche market. [2]

8. Hartsyke Foods sells four products. Product P has a high share of a slow-growing market. Product Q has a low share of a fast-growing market. Product R has a low share of a shrinking market. Product S has a high share of a fast-growing market.

(a) Identify the Boston Matrix category of each product. [4] (b) Product P is in the maturity stage of its life cycle. Recommend one extension strategy and justify it. [2]

9. Penmarrow Lamps sells 1,000 energy-saving lamps a month at the going rate of £30. The unit cost is £14. It plans a penetration price of £24 and estimates price elasticity of demand at −1.8. Analyse the effect of the plan on revenue and on profit margin. [6]

10. Ostlethwaite Optics sells spectacles only through independent high-street retailers and is considering its own website. Analyse two advantages of direct distribution through e-commerce and one disadvantage of using intermediaries. [6]

11. Selwyck Books earns 60% of its yearly sales in the last three months. Analyse how it could adapt its marketing mix to this seasonal demand. [4]

12. Yoxmere Stationery spent £6,000 on a pay per click campaign. It produced 200,000 advert views, 5,000 clicks and 400 purchases, and the profit from marketing activities was £3,000. The owner is considering continuing the campaign and using artificial intelligence to personalise offers from customer data.

(a) Calculate the click-through rate, the conversion rate (purchases as a percentage of clicks) and the return on marketing spend. [3] (b) Evaluate whether Yoxmere should continue the campaign and add personalised offers. [7]

Answers

1. (a) B2B [1]; (b) C2C [1]; (c) B2C [1] Examiner insight: Match each label to who is buying from whom; the buyer’s identity decides the market type.

2. (a) (231 − 210) ÷ 210 × 100 [1] = 10% [1] (b) 29.4 ÷ 231 × 100 [1] = 12.7% [1] (c) (29.4 − 25.2) ÷ 25.2 × 100 [1] = 16.7% [1]; sales grew faster than the market (10%), so share rose from 12.0% to 12.7% [1] Examiner insight: Show the formula and use the right year in the denominator each time; the comment should compare two figures rather than repeat one.

3. (a) % change in quantity = −300 ÷ 2,000 × 100 = −15% and % change in price = 8 ÷ 80 × 100 = +10% [1]; PED = −15 ÷ 10 = −1.5 [1] (b) Old revenue = 80 × 2,000 = £160,000 [1]; new revenue = 88 × 1,700 = £149,600 [1]; change = −10,400 ÷ 160,000 × 100 = −6.5% [1] Examiner insight: Keep the sign and the working visible; revenue is price times quantity at each stage, so compute both before finding the change.

4. (a) Speaker: 9 ÷ 6 = +1.5 [1]; radio: −3 ÷ 6 = −0.5 [1] (b) The speaker is a normal good, income elastic, because demand grows faster than income [1]; the radio is inferior, since its demand falls when incomes grow [1] Examiner insight: A value needs a reading: say what the sign and the size tell the business.

5. (a) East: 96,600 ÷ 84,000 × 100 = 115 [1]; West: 58,200 ÷ 60,000 × 100 = 97 [1]; Central: 79,200 ÷ 72,000 × 100 = 110 [1] (b) 9,000 ÷ 15,000 × 100 [1] = 60% [1] Examiner insight: An index is a value divided by the base value, times 100, not the difference; label the answers with the site names.

6. The true proportion of all customers probably lies between 49% and 61%, with 95% confidence [1]; the estimate of 55% is only a central figure [1]; the lower end is below the 50% needed, so the launch could fall short and carries some risk [1]; a larger or better-chosen sample would narrow the interval and make the decision safer [1] Examiner insight: Apply the interval to the decision in the stem rather than only defining it.

7. (a) Psychographic (values or lifestyle) [1]; behavioural (buying frequency) [1] (b) Customers are few, so sales and growth are limited [1], and the business is exposed if the segment shrinks or a rival enters [1] Examiner insight: Take each basis from a detail in the stem; a disadvantage needs its consequence, not just a label.

8. (a) P: cash cow [1]; Q: question mark [1]; R: dog [1]; S: star [1] (b) For example, rebranding or new packaging to refresh appeal [1], because the market is slow-growing and P’s strong share means a small boost protects a major source of cash [1] Examiner insight: Identification earns the first marks; a recommendation needs a reason connected to the product’s position.

9. A price cut of £6 on £30 is −20% [1]; quantity rises by 1.8 × 20 = 36%, to 1,360 lamps [1]; revenue rises from £30,000 to 24 × 1,360 = £32,640, up 8.8% [1]; margin per lamp falls from £16 (53.3% of price) to £10 (41.7%) [1]; total margin falls from £16,000 to £13,600 [1]; so revenue rises but profit falls, and the plan only pays if extra share brings later gains, or repeat buyers accept a higher price [1] Examiner insight: Separate revenue from profit; an analysis that stops at revenue misses the margin effect the stem invites.

10. Advantage one: the firm keeps the full margin instead of sharing it with retailers [1], improving profit per pair [1]. Advantage two: it collects data on customers’ purchases [1], enabling targeted offers and better product decisions [1]. Disadvantage of intermediaries: retailers take a margin and control how the brand is displayed [1], so the firm has less control over price and image [1] Examiner insight: Each point needs a development after the identification; saying “cheaper” or “wider reach” alone is a statement, not an analysis.

11. Promotion: advertise and offer gift sets before the peak [1], so awareness peaks when demand rises [1]. Price and place: use discounts in quiet months to spread sales [1] and extend online availability or temporary stock to meet the peak [1] Examiner insight: Link each mix element to the pattern of demand; generic mix descriptions do not use the seasonal detail.

12. (a) Click-through rate = 5,000 ÷ 200,000 × 100 = 2.5% [1]; conversion rate = 400 ÷ 5,000 × 100 = 8% [1]; return on marketing spend = 3,000 ÷ 6,000 × 100 = 50% [1] (b) A 50% return suggests the campaign pays its way [1]. An 8% conversion rate suggests the website turns visitors into buyers [1]. Personalisation using data analytics could raise conversion and customer retention [1]. However, it needs systems and staff time, and its cost may reduce the return [1]. Use of website cookies and personal data raises privacy concerns that could harm reputation [1]. The data come from one campaign, and the profit figure may not capture later repeat sales [1]. Judgement: continue the campaign, since it is profitable, and trial personalisation on a small scale first, measuring whether conversion rises by more than the added cost [1] Examiner insight: An evaluation needs a conclusion that says what the decision depends on; calculating the measures is only worth marks if the answer then uses them.

Where marks are usually lost

• Using the wrong year as the base for percentage change, share or index.
• Giving elasticity without reading it as elastic, inelastic, normal or inferior.
• Reporting revenue without checking the effect on profit margin.
• Naming a Boston Matrix category with no decision.
• Defining a confidence interval without applying it.
• Evaluating with a list and no judgement.

Next steps

• Re-read the revision notes for formulas and tables.
• Return to the study guide for any weak area.
• Check the AQA AS Business hub and the checklist.
• Try the free 10-minute diagnostics.
• Book a free trial class.

Frequently asked questions

What base should you use for percentage change, share or index numbers? Use the correct base year in each case: the original figure for percentage change and the base year as 100 for an index. Using the wrong year is the most common error.

What should you say after calculating an elasticity? Read the value: say whether demand is elastic or inelastic, or whether the good is normal or inferior, and what it means for revenue. Giving a number without that reading loses marks.

Is a rise in revenue always good for a business? Not necessarily. A price change that raises revenue can also change the profit margin, so check the effect on profit before concluding.

How should you use a confidence interval in an answer? Apply it to the decision in the case, for example by saying whether the lower end of the interval would still make a launch worthwhile, rather than only defining it.

Official syllabus

AQA AS and A-level Business (7137, 7138) specification, version 1.1, November 2025: section 3.1.3 Marketing management, the assessment overview and the Annex on quantitative skills and formulae.