Evaluate two changes that UBH could make to its current marketing strategy to increase sales and reach its target capacity utilisation.

Mark scheme

Marking points from the official mark scheme (Feb/Mar 2022). The mark or mark type is shown in brackets.

1. [1] (Knowledge) Definition of marketing strategy: a detailed plan of the company's marketing objective, budget and marketing mix.
2. [1] (Knowledge) The objective set will be the benchmark of success/failure as well as a major determinant of the marketing mix and the budget level.
3. [1] (Knowledge) Reference to situational analysis / market research as part of marketing.
4. [1] (Knowledge) 1 mark for definition of capacity utilisation if no other knowledge shown.
5. [1] (Application) Use of PED. Demand thought to be price inelastic. 10% reduction in price could lead to 5% increase in demand.
6. [1] (Application) Limited awareness among business start-ups of co-working.
7. [1] (Application) Target multinationals.
8. [1] (Application) Effectiveness of social media marketing.
9. [1] (Application) Market growth forecast to be 10% in 2023.
10. [1] (Application) Reference to Table 1.
11. [1] (Application) Use of special events to attract customers.
12. [1] (Application) Price, flexible contracts and distance from key transport hubs are the three most important factors in choice.
13. [1] (Application) High level of satisfaction with centre facilities.
14. [1] (Analysis) Reducing price will result in an increase in quantity demanded but if estimate of PED is correct then revenue will fall.
15. [1] (Analysis) Increasing the differentiation of facilities from competition may attract customers but could be expensive and customers are satisfied with UBH's offer already.
16. [1] (Analysis) More effective promotion to increase awareness among business start-ups of the benefits of co-working. This might suggest that promotion should be informative.
17. [1] (Analysis) More effective targeting of marketing budget. Spending on social media marketing may be cheapest way of attracting new customers.
18. [1] (Analysis) Product development to attract multinationals will require greater space will reduce capacity and therefore increase cost and prices.
19. [1] (Evaluation) Judgement of the effectiveness of recommended changes to the marketing strategy in achieving higher sales.
20. [1] (Evaluation) Marketing planning gives a clear direction to the business making success more likely.
21. [1] (Evaluation) Elements that the evaluation/judgement might depend on: Planning depends on effective market research to identify needs of customers and determine how best to appeal to them.
22. [1] (Evaluation) Other factors also important to success such as operations.
23. [1] (Evaluation) Need to cover costs to make a profit.
24. [1] (Evaluation) Reaction of competitors important.
25. [1] (Evaluation) As the market is growing quickly even if UBH does nothing capacity utilisation may still increase.
26. [1] (Evaluation) Is the objective of 100% utilisation feasible given the flexible contracts offered to customers?