Edexcel IGCSE Business: The marketing mix (4BS1) – 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 Topic 4 Marketing, section 4.3 “The marketing mix” (points 4.3.1 to 4.3.4) in the Pearson Edexcel International GCSE in Business (4BS1) specification, Issue 2, February 2026. Use the study guide and revision notes first if needed. Course links: the 4BS1 Business hub, the printable checklist and the free diagnostics. Every business named here is invented, and amounts are in dollars. Calculators may be used.

Questions

1. (a) Explain the difference between a good and a service. [3] (b) Outline two stages a business might go through when developing a new product. [4]

2. Ottley Bakes makes 4,000 loaves a month. Variable cost is 2.20 per loaf and fixed costs are 12,000 a month. Ottley prices with the cost plus method, using a 35% mark-up.

(a) Calculate the total cost of one loaf. [2] (b) Calculate the selling price of one loaf. [2] (c) Calculate the monthly profit if all 4,000 loaves are sold at this price. [2] (d) State one limitation of cost plus pricing. [1]

3. (a) State the pricing strategy used in each case. [3]

• (i) A firm launches a new headset with unique technology at a high price, and plans to lower it after a year.
• (ii) A new streaming app is launched at a very low price to win subscribers quickly.
• (iii) A fuel station sets its price one cent below a rival station across the road.

(b) Explain one situation in which a business might use promotional pricing. [2]

4. Sales of a gadget, in thousands of units, were: Year 1: 4; Year 2: 31; Year 3: 68; Year 4: 74; Year 5: 73; Year 6: 52.

(a) Calculate the percentage change in sales from Year 5 to Year 6, to 1 decimal place. [2] (b) Identify the phase of the product life cycle in Year 3 and in Year 5. [2] (c) Explain two extension strategies the maker could use. [4]

5. Greylake Foods manages four products.

Product	Own market share	Largest rival’s share	Market growth
P	36%	18%	2%
Q	6%	30%	14%
R	28%	14%	15%
S	4%	25%	1%

(a) Calculate the relative market share of each product. [2] (b) Place each product in its Boston matrix category. [4] (c) Greylake is reviewing its product portfolio. Evaluate whether it should stop selling product S. [5]

6. Sandcroft Garden Tools sells a trowel at a retail price of 24. A shop that stocks the trowel keeps 35% of the retail price. Selling on its own website (as an e-tailer), Sandcroft pays 3.50 delivery and a payment fee of 5% of the price.

(a) Calculate the amount Sandcroft receives per trowel sold through the shop. [2] (b) Calculate the amount Sandcroft receives per trowel sold on its website. [2] (c) Calculate how much more Sandcroft would receive if 10,000 trowels were sold online instead of through shops. [1] (d) Explain one non-financial reason why Sandcroft might still sell through shops. [2]

7. (a) State whether each is above the line or below the line promotion: a cinema advert; a free sample handed out in a supermarket; a local radio advert; a discount voucher sent by post. [4] (b) Explain the difference between the two. [2]

8. Zinta Wear is an online clothing store aimed at 16 to 19 year olds who have low incomes.

(a) Explain what is meant by public relations. [2] (b) Define targeted advertising online and state one benefit of it. [2] (c) Explain one risk of viral advertising via social media. [2] (d) Explain which one promotion method would suit Zinta Wear best. [3]

9. Orlindo Snacks sells a 250g pack for 4.00. Unit cost is 2.60 and it sells 1,500 packs a month. For one month it runs a special offer of 25% off, and sales rise to 2,800 packs.

(a) Calculate the monthly revenue with and without the offer. [2] (b) Calculate the monthly profit with and without the offer, and the change in profit. [3] (c) Evaluate whether Orlindo should run the offer. [6]

10. Kesta Studio is a small business with 12 employees. It makes ceramic mugs and is launching a travel cup. The cost of making each cup is 11. The owner is choosing between two pricing strategies. Skimming: price 28, expected first-year sales 800 cups. Penetration: price 16, expected first-year sales 2,400 cups.

(a) Calculate the first-year profit under each strategy. [4] (b) Justify which strategy Kesta Studio should use. [8]

Answers

1. (a) A good is a physical item [1]; a service is an activity done for the customer [1]; one difference, for example goods can be stored in stock but services usually cannot [1]. [3] (b) Market research, such as asking possible customers whether they would buy the product [1], which reduces the risk of making something nobody wants [1]. Testing a sample or prototype [1], so faults or unpopular features can be changed before launch [1]. [4] Examiner insight: “Outline” needs the stage and a short statement of what happens or why.

2. (a) Fixed cost per loaf = 12,000 ÷ 4,000 = 3.00 [1]; total cost = 2.20 + 3.00 = 5.20 [1]. [2] (b) Mark-up = 5.20 × 0.35 = 1.82 [1]; price = 5.20 + 1.82 = 7.02 [1]. [2] (c) Profit per loaf 1.82 [1] × 4,000 = 7,280 [1]. [2] (d) It ignores rivals’ prices; or the unit cost is only right if output is 4,000 [1]. [1] Examiner insight: Show each stage of a calculation, so that a slip in one step can still be followed.

3. (a) (i) Skimming [1]. (ii) Penetration [1]. (iii) Competition [1]. [3] (b) A business wants to clear old stock before a new model arrives [1], and a temporary price cut raises sales quickly and frees storage space [1]. [2] Examiner insight: “When” asks for a situation, not a definition.

4. (a) Change = 52 − 73 = −21 [1]; −21 ÷ 73 × 100 = −28.8%, a fall of 28.8% [1]. [2] (b) Year 3: growth [1]. Year 5: maturity [1]. [2] (c) Selling in a new market or to a new segment [1], which gives a new group of customers who may buy [1]. Adding a new feature or changing the packaging [1], which gives existing customers a reason to buy again [1]. [4] Examiner insight: Explain how each strategy delays decline; a name alone is usually not enough.

5. (a) P: 36 ÷ 18 = 2.0 and R: 28 ÷ 14 = 2.0 [1]; Q: 6 ÷ 30 = 0.2 and S: 4 ÷ 25 = 0.16 [1]. [2] (b) P: cash cow [1]. Q: question mark [1]. R: star [1]. S: dog [1]. [4] (c) S has low relative share (0.16) and its market is growing at only 1% [1], so it has little prospect of becoming a leader [1]. Keeping it ties up money and effort that could support R, which is a star [1]. Against stopping: S may still bring some sales and customers who like the range [1]. Judgement: stop selling S unless it covers its costs, and move the resources to R and the question mark Q [1]. [5] Examiner insight: Use the figures given; a recommendation with no data from the table reads as a general comment.

6. (a) Shop keeps 24 × 0.35 = 8.40 [1]; Sandcroft receives 24 − 8.40 = 15.60 [1]. [2] (b) Fee = 24 × 0.05 = 1.20 [1]; receives 24 − 3.50 − 1.20 = 19.30 [1]. [2] (c) (19.30 − 15.60) × 10,000 = 37,000 [1]. [1] (d) Shops give customers a chance to see and try the product [1], and shop shelves put the product in front of people who would not visit the website [1]. [2] Examiner insight: A point about money does not answer a question asking for a non-financial reason.

7. (a) Cinema advert: above the line [1]. Free sample: below the line [1]. Local radio advert: above the line [1]. Discount voucher by post: below the line [1]. [4] (b) Above the line is paid advertising in media aimed at a wide audience [1]; below the line uses other methods, often more direct and aimed at a particular group, such as offers and trials [1]. [2] Examiner insight: Describe both sides in a “difference” question.

8. (a) Managing how the public sees the business [1], for example through news stories or supporting a local cause, to improve its image and brand [1]. [2] (b) Adverts are shown online to chosen groups, such as by age, location or interests [1]. Benefit: less money is wasted on people unlikely to buy [1]. [2] (c) Once a post is shared, the business cannot control it [1], so the message may be changed or criticised and could harm the brand [1]. [2] (d) Method, such as a discount code shared on social media [1]. Reason: suits 16 to 19 year olds, who are heavy users of social media [1], and the discount suits low incomes, so it is more likely to lead to a purchase [1]. [3] Examiner insight: Link the method to the age and income given, not just to popularity.

9. (a) Without offer: 4.00 × 1,500 = 6,000 [1]. With offer: price 3.00 × 2,800 = 8,400 [1]. [2] (b) Without: (4.00 − 2.60) × 1,500 = 2,100 [1]. With: (3.00 − 2.60) × 2,800 = 1,120 [1]. Profit falls by 980 [1]. [3] (c) For: revenue rises by 2,400 [1]; the offer may bring new customers who try the product and buy again later [1]. Against: profit falls by 980 [1] because profit per pack drops from 1.40 to 0.40 [1], and customers may wait for the next offer [1]. Judgement: it loses money, so run it only to win new customers or clear stock, if they will return at the full price [1]. [6] Examiner insight: Revenue and profit can move in opposite directions; reach a decision supported by both.

10. (a) Skimming: (28 − 11) × 800 [1] = 13,600 [1]. Penetration: (16 − 11) × 2,400 [1] = 12,000 [1]. [4] (b) Skimming gives 1,600 more profit in year one [1]. Profit per cup is 17 against 5, and only 800 cups need making, which suits a small business with 12 employees and limited cash [2]. Penetration reaches 2,400 customers, builds awareness for the new product and may bring repeat sales [2]. Both rely on sales forecasts that may be wrong [1]. Recommendation, for example: skimming, because it earns more with less risk, lowering the price when rivals appear; or penetration, if market share matters more than first-year profit. The reasons must fit the figures [2]. [8] Examiner insight: Both choices can be argued, so credit follows the reasoning and the data used, not which strategy is picked.

Where marks are usually lost

• Naming a strategy without saying when it suits the business.
• Not working out relative market share before placing a product in the Boston matrix.
• Judging a promotion by revenue and ignoring profit.
• Giving a financial reason when the question asks for a non-financial one.
• Describing a promotion method without linking it to the segment in the question.
• Reaching no decision on an evaluate or justify question.
• Forgetting to add fixed cost per unit for cost plus.

Next steps

• Recap with the revision notes and the study guide.
• Course hub: 4BS1 Business and the printable checklist.
• Take the free diagnostics.
• Book a free trial class.

Frequently asked questions

What do these marketing mix practice questions cover? They follow section 4.3 of Pearson Edexcel International GCSE Business (4BS1): product, the product life cycle and Boston matrix, pricing strategies, retailers and e-tailers, and promotion including branding and technology.

What must you work out before placing a product in the Boston matrix? Work out relative market share first, by dividing the product’s market share by the share of the largest rival. Skipping this step is a common error.

Should you judge a promotion by the revenue it raised? No. Check its effect on profit as well, because special offers and discounts can raise revenue while cutting profit per sale.

What is often forgotten in cost-plus pricing? The fixed cost per unit. Add the fixed cost per unit to the variable cost per unit to find total unit cost before adding the mark-up.

Official syllabus

Pearson Edexcel International GCSE in Business (4BS1), Specification, Issue 2, February 2026, published by Pearson Education Limited. Topic 4: Marketing, section 4.3 “The marketing mix”, points 4.3.1 to 4.3.4.