IB DP Business Management: Introduction to marketing and Marketing planning – 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 – the IB holds copyright in its own papers. Use these alongside the official past papers available through your school or the IB store.

These questions cover sections 4.1 Introduction to marketing and 4.2 Marketing planning of the IB Business management guide, first assessment 2024, for SL and HL. Question 9 is HL only. Learn the content first in the study guide and the revision notes. The wider unit also has a Unit 4 practice set. Course hub: IB DP Business Management. Tick-list: printable checklist. Spot weak areas with the free 10-minute diagnostics.

Questions

1. Define the term market orientation. [2]

2. Distinguish between a niche market and a mass market. [3]

3. Fernlatch Pet Foods sells dry food for dogs. Total sales in its market were USD 64.0 million in 2023 and USD 68.8 million in 2024. Fernlatch’s sales were USD 8.0 million in 2023 and USD 9.1 million in 2024.

(a) Calculate Fernlatch’s market share in each year. [3] (b) Calculate market growth between 2023 and 2024. [2] (c) Comment on Fernlatch’s performance. [2]

4. State two ways in which a market could be segmented. [2]

5. Explain two benefits of marketing planning for a business that is launching its first product. [4]

6. Five brands of school backpack are scored from 1 (lowest) to 10 (highest) for price and for durability.

Brand	Price	Durability
V	2	3
W	3	8
X	6	6
Y	9	9
Z	8	3

(a) Construct a position map, using low (1-3), medium (4-7) and high (8-10) bands on each axis. [3] (b) A new brand wants to avoid direct rivals and appeal to buyers who value durability. Identify an area of the map it could occupy and explain one risk of that position. [3]

7. Tarnrock Climbing Hall is opening in a town where one large leisure center already has a climbing wall. Tarnrock’s planned USP is coaching for children in groups of no more than six, led by qualified instructors.

(a) Explain how this USP could help Tarnrock. [3] (b) Suggest two other ways in which Tarnrock could differentiate itself from the leisure center. [4]

8. Daventra Kitchenware’s engineers designed a 14-piece titanium cookware set and priced it at USD 520. Sales were poor. A later survey showed that most households wanted a set of five pieces for under USD 150.

(a) Identify Daventra’s orientation and justify your answer. [2] (b) Recommend what Daventra should do next. [6]

9. (HL only) Explain one benefit and one limitation for a business of holding the largest share of its market. [4]

10. Marsden Lane Opticians is choosing which segment to target. It has data on three segments in its town.

Segment	Customers per year	Average spend (USD)	Rival opticians
Students	30,000	120	6
Professionals	18,000	260	4
Over-60s	9,000	310	1

(a) Calculate the value of each segment. [3] (b) Marsden Lane expects to win 20% of over-60 customers and 8% of professional customers. Calculate the sales revenue from each and state which is higher. [3] (c) Evaluate whether Marsden Lane should aim for a niche or a mass market. [6]

11. Hollinby Bakery sold USD 4.32 million in a market worth USD 36.0 million. The market is expected to grow by 5% next year, and Hollinby wants a 15% share.

(a) Calculate Hollinby’s current market share. [2] (b) Calculate the expected market size next year. [2] (c) Calculate the sales needed to reach a 15% share. [2] (d) Calculate the percentage increase in sales required. [2] (e) Comment on whether the target looks realistic. [2]

Answers

1. An approach in which a business bases its decisions on customer needs [1], found out through market research before the product is designed and promoted [1]. [2] Examiner insight: A definition earns credit when it says where decisions start; “selling to customers” describes every business and does not separate market from product orientation.

2. A niche market is a small, specialized segment with distinct needs [1]. A mass market is a large market of customers with broadly similar needs [1]. A clear contrast, such as few customers with specific needs versus many with common needs [1]. [3] Examiner insight: “Distinguish” asks for the difference, so answers that define each term separately gain most when they end with an explicit contrast.

3. (a) 2023: 8.0 / 64.0 x 100 [1] = 12.5% [1]. 2024: 9.1 / 68.8 x 100 = 13.2% (3 s.f.) [1]. [3] (b) (68.8 - 64.0) / 64.0 x 100 [1] = 7.5% [1]. [2] (c) Fernlatch’s sales grew by about 13.8%, faster than the market’s 7.5% [1], so its share rose by about 0.7 percentage points, though at 13.2% it remains a small player (or similar judgment) [1]. [2] Examiner insight: “Comment” asks for a judgment based on the result, so quote the figures and say what they mean; repeating the numbers alone tends to gain little.

4. Any two from: age, income, location, lifestyle, buying behavior. First base [1]. Second base [1]. [2] Examiner insight: “State” needs no explanation; two correct bases in a short list are enough, and a base repeated in different words counts once.

5. Benefit one: it sets clear, measurable targets such as a sales or share goal [1], so the business can check whether the launch is succeeding [1]. Benefit two: it fits actions and spending to a budget [1], so limited money is not wasted on activities that do not support the target customers [1]. (Other valid benefits accepted.) [4] Examiner insight: Each benefit needs a “so what” in the context of a first product; naming a benefit without explaining it tends to gain only part of the credit.

6. (a) Axes labeled price and durability, each with three bands [1]. At least four brands in correct cells [1]. All five correct [1]. [3]

Durability
high    | W (low price)   |                | Y              |
medium  |                 | X              |                |
low     | V               |                | Z              |
          low price         medium price     high price

(b) The medium price, high durability cell is empty [1]. Risk: it sits between W, which is cheaper, and Y, which is premium [1], so buyers may prefer one of those; the gap might also exist because few customers want that combination, so research is needed [1]. (Other empty cells accepted with sound reasoning.) [3] Examiner insight: A map shows where rivals are, not where demand is; answers that treat an empty area as a guaranteed opportunity tend to miss the evaluation point.

7. (a) A USP gives families a specific reason to choose Tarnrock over the leisure center [1]. Small groups and qualified instructors signal safety and better learning [1], which could justify a higher price or build word-of-mouth, since parents value it [1]. [3] (b) Any two, each with a link to the case: a clear brand image such as a friendly family-focused identity [1], helping it stand apart from a general leisure center [1]; flexible opening hours around school times [1] that suit parents’ routines [1]. (Other valid ideas: loyalty memberships, party packages, route-setting quality.) [4] Examiner insight: Differentiation ideas gain credit when tied to this target market; generic suggestions such as “better quality” with no case link tend to stay at a low level.

8. (a) Product orientation [1], because the engineers designed and priced the set first and only later found out what households wanted [1]. [2] (b) Recommend running research with target households before further spending [1], since the survey already shows demand differs from the product [1]. Recommend launching a five-piece set below USD 150 [1], because that matches what most households said they wanted [1]. Risk: lower price means lower margin and redesign cost [1]. Judgment: redesign for the mass market, perhaps keeping the 14-piece set for a small premium segment, because following demand is likely to raise sales more than defending a product few wanted [1]. [6] Examiner insight: “Recommend” calls for an advisable course of action with supporting reasons from the case; options alone, without a clear choice, tend to lose the final judgment credit.

9. Benefit: large volumes can lower unit costs or strengthen bargaining with suppliers [1], which can raise profit margins or allow lower prices [1]. Limitation: share may have been won through heavy promotion or price cuts [1], which can reduce profit and make the position costly to defend [1]. (Other valid points accepted.) [4] Examiner insight: A benefit and a limitation each need a development step; one-line statements such as “more sales” or “more costs” tend to be too thin.

10. (a) Students 30,000 x 120 = USD 3.6 million [1]. Professionals 18,000 x 260 = USD 4.68 million [1]. Over-60s 9,000 x 310 = USD 2.79 million [1]. [3] (b) Over-60s: 20% x 9,000 = 1,800 customers x 310 = USD 558,000 [1]. Professionals: 8% x 18,000 = 1,440 customers x 260 = USD 374,400 [1]. Over-60s are higher [1]. [3] (c) Niche (over-60s): smallest value, but the highest spend per customer and only one rival [1], so the expected revenue is higher at USD 558,000 and the lower competition makes a high share more realistic [1]. Risk: a small customer base, so growth is limited and a larger rival might enter [1]. Mass (students): the largest number of customers but the lowest spend and six rivals [1], so margins and share are likely to be squeezed [1]. Judgment: target over-60s, with professionals as a possible second segment, because the data show better expected revenue with less competition, though the share assumptions should be checked by research [1]. [6] Examiner insight: “Evaluate” asks you to weigh strengths and limitations; using the calculated figures in your argument and then reaching a stated judgment is what separates a strong answer from a list.

11. (a) 4.32 / 36.0 x 100 [1] = 12.0% [1]. [2] (b) 36.0 x 1.05 [1] = USD 37.8 million [1]. [2] (c) 0.15 x 37.8 [1] = USD 5.67 million [1]. [2] (d) (5.67 - 4.32) / 4.32 x 100 [1] = 31.3% (3 s.f.) [1]. [2] (e) Sales must rise by over 31% while the market grows only 5% [1], so Hollinby must take customers from rivals, which looks ambitious without major promotion or new products; a smaller step might be more realistic [1]. [2] Examiner insight: Show each step and use your own earlier answers consistently; quote the figures when you comment, because a verdict without numbers tends to read as unsupported.

Where marks are usually lost

• Using the market total from the wrong year when calculating share.
• Mixing up market growth with the business’s own sales growth.
• Writing “up 0.7%” when the share rose by 0.7 percentage points.
• Defining terms from memory with no contrast on “distinguish” questions.
• Naming segmentation bases without choosing a target market.
• Treating an empty space on a position map as proof of demand.
• Offering a USP or differentiation idea that is not linked to the case.
• Giving recommendations with no reasons, or evaluation with no judgment.
• Rounding too early in multi-step calculations.

Next steps

• Read the study guide and revision notes again for any question you missed.
• Check coverage on the printable checklist and the course hub.
• Try all free 10-minute diagnostics.
• Book a free trial class.

Frequently asked questions

What is the difference between a percentage change and a percentage point change in market share? If a share rises from 10.0% to 10.7%, it has risen by 0.7 percentage points, not by 0.7%. Writing “up 0.7%” in that case is a common way to lose marks when comparing two shares.

What are common mistakes on market share and growth calculations? Students often divide by the market total from the wrong year, mix up market growth with the business’s own sales growth, and round too early in multi-step calculations. Keep the measure and period the same on the top and bottom of each calculation.

Does an empty space on a position map prove there is demand? No. An empty area on a position map may be a gap in the market, but it may also mean customers do not want that combination, so it needs research before it is treated as an opportunity.

Which sections of the IB Business Management guide cover introduction to marketing and marketing planning? These are sections 4.1 Introduction to marketing and 4.2 Marketing planning in Unit 4 of the IB Business management guide, first assessment 2024. The importance of market share and market leadership is the HL only part of 4.1.

Official syllabus

International Baccalaureate Organization, Business management guide, first assessment 2024, sections 4.1 and 4.2.