IGCSE Business: Marketing mix (Cambridge 0264) – 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 3.3 Marketing mix of the Cambridge IGCSE Business 0264 syllabus for examination in 2027, 2028 and 2029. All businesses are invented and all amounts are in dollars. Revise first with the study guide and the revision notes. Course links: IGCSE Business hub and the checklist. The free diagnostics are a good first check.

Questions

1. State two functions of the packaging of a food product. [2]

2. Nettlebrook Preserves makes jams and chutneys sold in small shops. (a) Define brand image. [2] (b) Explain one disadvantage to Nettlebrook of developing a new product. [2]

3. Nettlebrook’s cherry chutney had these yearly sales (units).

Year	1	2	3	4	5	6	7
Sales	1,500	6,200	14,800	21,000	21,400	19,500	12,000

(a) Identify the stage of the product life cycle in year 2 and in year 7. [2] (b) Calculate the percentage change in sales from year 6 to year 7. [2] (c) Recommend and justify an extension strategy for the chutney. [4]

4. Saffrane Skincare makes a face cream at a unit cost of 18.50. (a) Calculate the cost-plus price if it uses a mark-up of 60%. [3] (b) Explain one advantage and one disadvantage of cost-plus pricing. [2]

5. Ludmoor Outdoor is launching a new headlamp. The unit cost is 40. Pricing at 95 is expected to sell 3,000 units. Pricing at 60 is expected to sell 7,000 units. (a) Calculate the profit under each price. [4] (b) Justify which pricing approach Ludmoor should choose. [5]

6. Define dynamic pricing and give one example of where it is used. [3]

7. Vellmar Garden Tools sells spades to a wholesaler at 12. The wholesaler sells them to retailers at 15. Retailers sell them to the public at 21. (a) Calculate the wholesaler’s mark-up as a percentage. [2] (b) Calculate the percentage by which the public price exceeds the price Vellmar charges. [2] (c) Explain one reason Vellmar may still prefer to use a wholesaler. [2]

8. Halgarth Bakery makes celebration cakes for families in one town. (a) State two reasons why Halgarth might promote its cakes. [2] (b) A cake normally costs 85. Calculate the price with a 20% discount. [2] (c) Recommend and justify one method of advertising for Halgarth. [5]

9. Rowanfield Tickets sells event tickets. Last year it sold 160,000 tickets, of which 38,000 were sold on its website. (a) Calculate the share of tickets sold online, as a percentage. [2] (b) Explain two advantages of ecommerce to Rowanfield. [4] (c) Explain one disadvantage of ecommerce to its customers. [2]

10. Marlowe Candles is launching scented candles in recycled glass jars for buyers aged 18 to 25, who shop mostly online and compare prices. It has a marketing budget of 60,000, planned as 50% for social media advertising, 30% for discount vouchers and 20% for packaging design. (a) Calculate the amount planned for each. [3] (b) Evaluate which element of the marketing mix is most important to the success of this launch. [6]

11. Cairnbrook Furniture sells 2.4 million dollars of furniture a year at home. A study suggests it could sell a further 0.3 million dollars a year in a neighbouring country. (a) Calculate the extra sales as a percentage of current sales. [2] (b) Explain one advantage of entering this market. [2] (c) Explain one disadvantage of entering this market. [2] (d) Justify whether Cairnbrook should enter. [4]

Answers

1. Any two: protects the goods from damage [1]; keeps food fresh or gives information such as ingredients, or attracts customers and shows the brand [1]. [2] Examiner insight: Two separate functions are needed; “protects” and “keeps safe” are one point repeated.

2. (a) The picture or impression customers have of the brand [1], for example its quality or values [1]. [2] (b) Developing it costs money for research and testing [1] and if customers do not buy it the cost may never be earned back [1]. [2] Examiner insight: A disadvantage scores best when the consequence is stated; “it costs money” alone is a bare statement.

3. (a) Year 2: growth [1]. Year 7: decline [1]. [2] (b) (12,000 - 19,500) / 19,500 × 100 [1] = 38.5% fall [1]. [2] (c) Choice, for example adapting the product (new flavour) [1]; sales have fallen for two years from a peak of 21,400, so the product may look dated [1]; a new flavour is cheaper than a new product and keeps existing shops as customers [1]; advertising alone would not solve a falling trend and may stop working when spending stops [1]. [4] Examiner insight: Quote figures from the table and label the fall; a recommendation with no use of the data stays at a general answer.

4. (a) Mark-up = 18.50 × 0.60 [1] = 11.10 [1]; price = 18.50 + 11.10 = 29.60 [1]. [3] (b) Advantage: simple and every sale covers the cost [1]. Disadvantage: ignores what customers will pay or rivals charge [1]. [2] Examiner insight: Show the mark-up step; if a slip occurs, visible working shows the method you intended.

5. (a) Price 95: (95 - 40) × 3,000 [1] = 165,000 [1]. Price 60: (60 - 40) × 7,000 [1] = 140,000 [1]. [4] (b) Skimming (95) gives the higher profit, 25,000 more [1], and suits a new product with few rivals [1]. But penetration gives revenue of 420,000 against 285,000 and builds share and brand awareness faster [1]. Skimming sells only 3,000 units and may attract rivals while customers wait [1]. Judgement, for example: choose skimming because the profit is higher and the headlamp is new, unless the aim is to build market share [1]. [5] Examiner insight: A justification must reach a decision; weighing the two prices without choosing one leaves the question unanswered.

6. Prices change according to demand, time or customer [1]; the aim is to charge more when demand is high [1]; example such as online ticketing or flights, where prices rise near the event [1]. [3] Examiner insight: Define the term first and then give a clearly different example; an example alone is not a definition.

7. (a) (15 - 12) / 12 × 100 [1] = 25% [1]. [2] (b) (21 - 12) / 12 × 100 [1] = 75% [1]. [2] (c) The wholesaler buys in bulk and delivers to many small shops [1], which saves Vellmar the cost of selling and delivering to each shop itself [1]. [2] Examiner insight: Use the producer’s price (12) as the base in (b); using the public price gives a different percentage.

8. (a) Any two: to inform people about the cakes [1]; to persuade families to buy [1]; to increase sales or compete with rivals. [2] (b) 85 × 0.8 [1] = 68 [1]. [2] (c) Method, for example leaflets in the local area [1]; the customers live in one town, so a cheap local method reaches them [1]; social media with a local focus is an alternative [1], but a small bakery may lack time to post often [1]; judgement tying the method to local families and a small budget [1]. [5] Examiner insight: A method must be linked to this business; “billboards reach many people” is general and wasteful for one town.

9. (a) 38,000 / 160,000 × 100 [1] = 23.75% (23.8%) [1]. [2] (b) Wider market: customers outside the area can buy [1] which raises sales [1]. Lower costs: fewer sales staff or premises needed [1] which can raise profit [1]. [4] (c) Customers may worry about the security of payment details [1], so some will not buy online or may be defrauded [1]. [2] Examiner insight: Part (c) asks about customers; an answer about the business’s website costs does not answer it.

10. (a) Social media 60,000 × 0.50 = 30,000 [1]; vouchers 60,000 × 0.30 = 18,000 [1]; packaging 60,000 × 0.20 = 12,000 [1]. [3] (b) Price: buyers compare prices, so a competitive price is vital [1]. Promotion: the target group is online, so social media reaches them cheaply, and half the budget is placed there [1]. Product: recycled jars fit the buyers’ values, but a good product still needs customers to hear of it [1]. Place: online selling fits where they shop [1]. Judgement: price or promotion is most important, for example promotion because a new brand with no awareness cannot sell [1], with a reason why the other matters less [1]. [6] Examiner insight: An evaluation needs a named choice and a reason it beats the alternatives; a tour of all four Ps gives no judgement.

11. (a) 0.3 / 2.4 × 100 [1] = 12.5% [1]. [2] (b) More sales [1] so more revenue and profit, or risk is spread if home sales fall [1]. [2] (c) Cultural differences, for example different style tastes [1] so the furniture may not sell as expected [1]. [2] (d) For: a 12.5% rise in sales [1]. Against: it lacks knowledge of the market and the legal rules [1]. Judgement: enter, but test the market first through an agent or a small launch [1], because extra sales justify the risk if costs are controlled [1]. [4] Examiner insight: A justification needs a decision and a condition or reason; repeating the advantages from (b) and (c) adds nothing.

Where marks are usually lost

• Using the wrong base in percentage change; divide by the starting value.
• Giving a calculation answer with no units or currency.
• Describing a method generally instead of linking it to the business in the stem.
• Defining a term by repeating the term itself.
• Writing two advantages that are the same point in different words.
• Answering for the business when the question asks about customers, or the reverse.
• Listing options in a recommendation question and never choosing one.
• Calling a flat peak decline, or the reverse, in a life cycle table.

Next steps

• Re-read the revision notes and the study guide.
• Return to the IGCSE Business hub or tick off the checklist.
• Try all the free 10-minute diagnostics.
• Book a free trial class.

Frequently asked questions

What are common mistakes on marketing mix questions in IGCSE Business 0264? Students often use the wrong base in a percentage change, give calculation answers without units or currency, describe a method generally instead of linking it to the business, and list options in a recommendation question without choosing one. Calling a flat peak “decline” in a life cycle table is another common error.

How do you calculate a percentage change in sales? Percentage change is the new value minus the old value, divided by the old value, times 100. For example, sales rising from 8,000 to 10,000 is a 25% rise.

How should you answer a marketing mix recommendation question? Make one clear choice and support it with two reasons from the case, linked to the product and its target customers. Listing all the options without choosing one earns little credit.

Which syllabus section covers the marketing mix? The marketing mix is section 3.3 of the Cambridge IGCSE Business 0264 syllabus, covering product, price, place, promotion, ecommerce, marketing strategy and entering new markets abroad.

Official syllabus

Cambridge IGCSE Business 0264 syllabus for examination in 2027, 2028 and 2029, published by Cambridge University Press & Assessment, section 3.3 Marketing mix.