Most of the marks on this half of the course go to questions that hand you a situation and ask you to name what is happening in it, or to say what a firm should do next and why. So every question here is a situation first: a console launched cheaply against established rivals, a florist selling from its own website, a board game whose sales have levelled off, a furniture maker buying imported wood as the pound falls, a coffee chain paying five pence more for a cup that will rot.
The wrong options are the terms students actually reach for by mistake. Skimming for penetration, because both are about the launch price. Growth for maturity, because both describe a product that is selling. Job rotation for job enrichment, because both change what someone does all day. Qualitative for quantitative, because the survey was about an opinion even though the answer is a count. Each explanation says why the right term fits the situation and why the near miss does not.
The set covers the marketing mix across price, place and product, primary and quantitative research, segmentation, internal and external recruitment, motivation through job design, tall structures and spans of control, and two influences from outside the firm — an exchange rate movement and an ethical choice with a cost attached.
Every business here is invented and every figure is inside the question, so nothing depends on a case study you cannot see. Exam board specifications, past papers and mark schemes are copyright material and nothing here is taken from them.
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A board game has sold steadily for six years. Sales have stopped rising but have not begun to fall, and the publisher has just released an expansion pack to keep existing owners buying. Which stage of the product life cycle is the game in, and what is the expansion pack? — one of ten questions written for this set, alongside pricing, e-commerce, segmentation, recruitment, motivation, structure and outside influences.
A new gaming console manufacturer, Z-Tech, launches a product at a very low price to quickly gain market share from established rivals. Which pricing strategy is Z-Tech using?
Penetration pricing
Penetration pricing involves setting a low initial price to enter a competitive market and gain market share. Price skimming involves starting with a high price to maximise profit from early adopters, which is the opposite of Z-Tech's strategy.