OxfordAQA A Level Business: Marketing — Practice Questions

These are original questions written for Marlbridge, in the style and at the standard of the examination. They are not reproduced past-paper questions — examination boards hold copyright in their own papers. Use these alongside the official past papers available free from your board.

Related: Marketing study guide · Marketing revision notes

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Section A

1. Distinguish between a marketing objective and a marketing plan, giving one example of each. [3]

2. Name the three sampling methods included in this specification. [2]

Section B

3. Explain segmentation, targeting and positioning as three connected steps, using an example of a business entering a new market. [8]

4. Explain three factors that influence a business’s choice of marketing research method. [6]

5. A product has a price elasticity of demand of −0.4. Explain what a price increase would do to total revenue, and state one reason this PED figure might change over time. [5]

6. Explain what is meant by an “extension strategy”, and why a business might use one at the maturity stage of the product life cycle. [4]

7. Using the Boston Matrix, explain the difference between a “star” and a “cash cow”, and suggest one appropriate marketing strategy for each. [6]

8. Evaluate the extent to which digital marketing and social media have changed the effectiveness of the marketing mix for a business entering an international market. [10]

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Answers

1. A marketing objective is a specific, measurable target for the marketing function, such as increasing market share or customer retention [1] [1]. A marketing plan is the broader document setting out objectives, strategy, tactics and budget needed to achieve them [1] [1].

2. Random, stratified and quota sampling [2 — 1 mark for two correct].

3. Segmentation divides the market into groups sharing similar characteristics — for example, dividing a market by demographic, geographic, income, behavioural or psychographic variables [1] [1]. Targeting is the decision about which segment(s) to serve, choosing between a niche strategy aimed at a smaller, well-defined segment or mass marketing aimed at the whole market [1] [1]. Positioning then establishes the product’s place relative to competitors for that chosen segment, communicated through pricing, packaging and distribution choices [1] [1]. For example, a business entering a market with a premium, ethically sourced product might segment psychographically around health-conscious, higher-income consumers, target that segment with a niche strategy rather than mass marketing, and position itself above mainstream competitors through specialist distribution channels [1] [1] — the positioning choice follows logically from the targeting choice, which itself follows from the segmentation variables identified first [1].

4. Cost — secondary research is usually cheaper since the data already exists, while primary research costs more but is tailored to the exact question being asked [1] [1]. Time — secondary research is faster to access, while primary research methods such as surveys or focus groups take longer to design and run [1] [1]. Relevance — primary research is designed around the exact question being asked and can be more current, whereas secondary data may be outdated or collected for a different original purpose, so it may not fit the business’s specific need as well [1] [1]. (Relevance is not the same as reliability: primary research can still be unreliable if the sample is biased or poorly designed, and a well-constructed secondary dataset, such as official government statistics, can be more reliable than a small, informal primary survey.)

5. A PED of −0.4 means demand is price inelastic, since the coefficient’s magnitude is less than 1 [1]. A price increase will reduce quantity demanded by a smaller percentage than the price rise itself, so total revenue (price × quantity) will rise [1] [1]. PED is not fixed — it can change over time as competitors respond, substitutes emerge, or the product becomes less of a necessity, so a business should not treat one PED figure as permanent when setting long-term pricing strategy [1] [1].

6. An extension strategy is an action taken to prolong the maturity stage of a product’s life cycle and delay its decline, such as relaunching the product, entering a new market, or modifying its features [1] [1]. A business uses one at maturity because sales growth has slowed and competition is typically at its most intense at this stage, so extending maturity defers the cost and risk of developing an entirely new product to replace declining sales [1] [1].

7. A “star” is a product with high market share in a high-growth market, generally requiring continued investment to maintain that growth position, but with strong future profit potential [1] [1]. A “cash cow” has high market share in a low-growth (mature) market, so it typically needs relatively little further investment and instead generates surplus cash that can fund other products [1] [1]. A suitable strategy for a star is to continue investing in promotion and capacity to maintain its growing market share [1]; for a cash cow, an appropriate strategy is to minimise further investment and use the cash it generates to fund stars or problem children elsewhere in the portfolio [1].

8. Case that digital marketing and social media have significantly changed the mix’s effectiveness: technology is an explicit influence on marketing planning in this specification, including digital marketing, social media, dynamic pricing, e-commerce and m-commerce [1] [1]. These channels allow a business entering an international market to reach and research target segments directly and cheaply, without the fixed costs of establishing physical distribution or traditional advertising in each new market [1]. Digital tools also support more precise segmentation, targeting and positioning, since online data allows a much finer-grained view of consumer behaviour than traditional market research alone [1]. Case for limited change: the underlying logic of the marketing mix — matching product, price, promotion and place to a targeted segment — is unchanged; digital tools are a new set of channels within promotion and place, not a replacement for the STP process itself [1] [1]. Difficulties of targeting international markets persist regardless of channel, including cultural differences, language, and varying regulation, which digital marketing does not remove [1]. For some products, especially those requiring physical distribution or high-touch service, traditional elements of the mix remain decisive [1]. Judgement: digital marketing and social media have substantially lowered the cost and difficulty of reaching international segments, but they extend rather than replace the marketing mix framework — a business still needs a coherent segmentation, targeting and positioning strategy behind those channels, so the change is significant but not fundamental to how the mix itself operates [1] [1].

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Where marks are usually lost

• Confusing a marketing objective (a specific target) with a marketing plan (the broader document).
• Describing segmentation, targeting and positioning as separate, unconnected topics rather than a chain of reasoning.
• Stating whether demand is elastic or inelastic without linking it to the resulting change in total revenue.
• Naming a Boston Matrix category without pairing it with a matching investment or marketing strategy.
• Giving a one-sided evaluation of digital marketing’s impact without weighing it against what the marketing mix framework still requires.