OxfordAQA IGCSE Business: Marketing (9225) – 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.

This practice set is aligned to the OxfordAQA International GCSE Business (9225) specification, version 3.1, for exams from May/June 2022 onwards. It covers section 3.5 Marketing: customers, segmentation, market research and the 4Ps. All businesses and figures are invented. Learn the content first from the study guide and the revision notes. The course hub and printable checklist list the rest of the course, and the free diagnostics help you find weak spots.

Questions

1. Define the term unique selling point (USP). [2]

2. Identify the type of market segmentation (gender, age, location or income) each business is using. [3]

• A bank offers a free account to customers under 18.
• A clothing chain stocks heavy coats only in its northern shops.
• A watchmaker makes a gold-plated range for wealthy customers.

3. Dalewood Tea Co. surveyed 320 customers about their favourite type of tea: green 96, black 128, herbal 64, fruit 32.

(a) Calculate the percentage who prefer black tea. [1] (b) State whether this is primary or secondary, and quantitative or qualitative, research. [2] (c) Explain one reason why the results might be inaccurate. [2] (d) Analyse how Dalewood could use the findings to decide which teas to promote. [3]

4. Explain one benefit and one drawback to a new business of using published government statistics about household income. [4]

5. Calderon Cycles makes 500 touring bicycles a month. Variable cost is 120 per bicycle and fixed costs are 30,000 a month.

(a) Calculate the selling price using cost-plus pricing with a 30% mark-up on average cost. [4] (b) Calculate the monthly profit if all 500 are sold at this price. [3]

6. Dalewood Tea Co. is launching a rare, high-quality tea in a country where no rival sells anything similar. Its target market is wealthy adults. Evaluate whether it should use skimming or penetration pricing. [6]

7. A supermarket sells kettles that cost it 15 each at a price of 12 as a loss-leader. It sells 800.

(a) Calculate the total loss on the kettles. [2] (b) Explain how the supermarket could still gain from this strategy. [4]

8. Calderon Cycles’ e-bike sold these units in each year since launch: year 1: 25; year 2: 140; year 3: 390; year 4: 560; year 5: 555; year 6: 420; year 7: 210.

(a) State the product life cycle stage in year 1, year 3 and year 7. [3] (b) Calculate the percentage fall in sales from year 6 to year 7. [2] (c) Calderon is considering a cheaper student version as an extension strategy. Evaluate whether this is suitable. [5]

9. (a) Explain one benefit and one risk of Dalewood Tea Co. developing a new product rather than adapting an existing one. [4] (b) Explain why a business might broaden and balance its product portfolio. [3]

10. Dalewood has 20,000 to launch a fruit tea aimed at 18 to 25 year olds, who mostly use social media. A rival already sells similar tea in supermarkets.

(a) It plans to spend 50% on influencers, 30% on in-store samples and 20% on posters. Calculate the amount for each. [2] (b) Analyse two factors that should influence the choice of promotional mix. [6]

11. A producer sells a case of jam to a wholesaler for 20. The wholesaler sells it to a retailer for 26, and the retailer sells it to the public for 40.

(a) Calculate the percentage mark-up of the wholesaler and of the retailer, to one decimal place where needed. [3] (b) Evaluate whether the producer should keep using the wholesaler or sell direct to the public. [6]

12. Calderon Cycles receives 1,800 online orders a month. 62% come through mobile phones.

(a) Calculate the number of mobile orders and computer orders. [2] (b) Identify two drawbacks of selling by e-commerce. [2] (c) Calderon’s touring bicycle is now in maturity and rivals sell it for less. Justify one change to the marketing mix. [8]

Answers

1. A feature or benefit that makes a product different from rivals’ products [1] and gives customers a reason to choose it [1]. [2] Examiner insight: A definition earns credit for the idea of difference from competitors; a vague “something special” is weaker.

2. Age [1]. Location [1]. Income [1]. [3] Examiner insight: Each answer needs one of the named types; naming the product alone does not show the type.

3. (a) 128 ÷ 320 × 100 = 40% [1]. (b) Primary [1] and quantitative [1]. (c) Any one developed: the sample may not represent all tea drinkers, for example only existing customers were asked [1], so the preferences may not match the whole market and Dalewood could stock the wrong teas [1]. (d) Black is the largest group at 40% and fruit the smallest at 10% [1]. Dalewood could focus promotion and stock on black and green, which together are 70% (224 of 320) [1]. The survey does not say why people choose, so a follow-up interview would help before dropping fruit tea [1]. Examiner insight: Analysis questions gain credit when a number from the data is used and then linked to a decision; restating the table gains little.

4. Benefit: it is cheap or free and quick to obtain [1], so a new business with a small budget can see income levels without paying for surveys [1]. Drawback: the data may be out of date or not specific to the business’s customers [1], so it could lead to wrong pricing or targeting decisions [1]. [4] Examiner insight: Each point needs a developed consequence for the business; a bare “cheap” is one idea.

5. (a) Fixed cost per bicycle = 30,000 ÷ 500 = 60 [1]. Average cost = 120 + 60 = 180 [1]. Mark-up = 180 × 0.30 = 54 [1]. Price = 234 [1]. (b) Revenue = 500 × 234 = 117,000 [1]. Total cost = 500 × 120 + 30,000 = 90,000 [1]. Profit = 27,000 [1]. Examiner insight: Showing each stage of working lets partial credit be given if one figure goes wrong; a bare final figure risks losing it all.

6. For skimming: the product is unique with no rivals [1], and wealthy buyers can pay a high price, which earns a high profit per unit [1]. A high price also fits a rare, high-quality image [1]. Against: rivals may enter once they see high profits [1], and a high price limits the number of buyers. Penetration would win share quickly but earns low profit and may harm the premium image [1]. Judgement: skimming is more suitable because there is no competition and the target market is wealthy, though Dalewood should plan to lower the price when rivals appear [1]. [6] Examiner insight: Evaluation questions are rewarded for a reasoned conclusion that refers to the case; a list of pros and cons with no decision stays low.

7. (a) Loss per kettle = 15 − 12 = 3 [1]. Total loss = 3 × 800 = 2,400 [1]. (b) The low price attracts shoppers into the store [1]. They buy other goods at normal prices [1]. If the profit on those extra sales exceeds 2,400 [1], the strategy pays, and it may also build a reputation for low prices and repeat visits [1]. Examiner insight: A strong answer states the condition under which the loss is recovered rather than just saying “it brings in customers”.

8. (a) Year 1: introduction [1]. Year 3: growth [1]. Year 7: decline [1]. (b) (420 − 210) ÷ 420 × 100 [1] = 50% [1]. (c) For: a cheaper version opens a new segment of students [1], and it uses existing design and production, so costs are lower than a new product [1]. Against: it might take sales from the full-price model [1], and students may have little income to spend, with falling sales suggesting the whole market may be shrinking [1]. Judgement: suitable if research shows student demand, because sales are in decline and a new segment could prolong the product’s life [1]. Examiner insight: Answers are stronger when they link the strategy to the stage in the cycle, as the specification asks for effectiveness and timing.

9. (a) Benefit: a new product can open new sales and reach new customers [1], giving the firm an edge over rivals [1]. Risk: development is costly [1] and the product may fail, wasting the investment [1]. (b) Broadening spreads risk, as a problem with one product does not harm the whole business [1], and it reaches more segments [1]. Balancing means older products earn cash to fund new ones [1]. Examiner insight: Part (a) asks for a benefit and a risk, so two benefits or two risks cannot earn full credit.

10. (a) Influencers = 20,000 × 0.50 = 10,000 [1]; samples = 6,000; posters = 4,000 [1] for all three. (b) Target market: the audience is 18 to 25 and uses social media [1], so influencers reach them directly [1], while posters may miss many of them [1]. Competitors: a rival already sells in supermarkets [1], so in-store samples could win customers at the shelf [1] and help differentiate the product from the rival’s tea [1]. (Budget is also acceptable: 20,000 is too small for TV.) Examiner insight: Two factors are asked for, so each should be named and applied; marks are lost when factors are named without reference to the case.

11. (a) Wholesaler: (26 − 20) ÷ 20 × 100 = 30% [1]. Retailer: (40 − 26) ÷ 26 × 100 [1] = 53.8% [1]. (b) Keep wholesaler: it buys in bulk, stores and delivers to many retailers [1], so the producer avoids storage and selling costs [1]. Direct: the producer could keep more of the 40 retail price, or lower the price to customers [1], but it would need delivery, staff and marketing, and may reach fewer outlets [1]. The wholesaler’s 6 mark-up is small against these costs [1]. Judgement: keep the wholesaler unless direct sales could be run cheaply, for example online [1]. Examiner insight: A recommendation is only credited when it draws on the numbers or the scenario; unsupported opinions score low.

12. (a) Mobile = 1,800 × 0.62 = 1,116 [1]. Computer = 1,800 − 1,116 = 684 [1]. (b) Any two: delivery costs and delays; security or trust worries; strong competition; customers cannot touch the product [1] [1]. (c) Change: lower the price, a competitive or cost-plus adjustment [1]. Rivals sell for less and maturity means sales are flat [1], so a lower price could protect share [1]. It fits a product with a known brand and design that no longer attracts new buyers by novelty [1]. Against: lower margin per bicycle [1], and rivals could cut again [1]. It must be matched by promotion that shows the bicycle’s quality, so that the brand image is not harmed [1]. Judgement: justified if volume rises enough to cover the lower margin; otherwise an extension strategy such as an upgraded model would be better [1]. Examiner insight: Justify means choosing one change and defending it; the weakest answers list changes to all four Ps.

Where marks are usually lost

• Stating a method such as skimming without applying it to the business.
• Leaving out units or the working in calculations.
• Writing “cheap” as the only reason for secondary research.
• Not using figures from the stem in analysis or evaluation.
• Mixing up mark-up with profit margin.
• Reading a flat sales year as decline.
• Evaluating without a final judgement.
• Describing e-commerce in general terms only.

Frequently asked questions

What is the difference between mark-up and profit margin? Mark-up is the amount added to cost, usually expressed as a percentage of cost. Profit margin expresses profit as a percentage of the selling price, so the two give different figures and are easy to mix up.

Does a year of flat sales mean a product is in decline? Not necessarily. Flat sales usually suggest the maturity stage of the product life cycle, while decline is shown by sales falling, so reading a flat year as decline is a common error.

Which part of OxfordAQA IGCSE Business 9225 do these questions cover? They cover section 3.5 Marketing of OxfordAQA International GCSE Business (9225): customers, segmentation, market research and the 4Ps of price, product, promotion and place.

Next steps

• Re-read the study guide for any question you missed.
• Condense it with the revision notes.
• Check the course hub and printable checklist.
• Try all the free 10-minute diagnostics.
• Book a free trial class.

Official syllabus

OxfordAQA International GCSE Business (9225) specification, version 3.1, OxfordAQA, for International GCSE exams May/June 2022 onwards. Section 3.5 Marketing (3.5.1 to 3.5.4).