Evaluate the changes HD should make to the marketing of its products in response to the website manager's market report (lines 85–94).
- (main)Evaluate the changes HD should make to the marketing of its products in response to the website manager's market report (lines 85–94).[16]
Mark scheme
Marking points from the official mark scheme (May/June 2022). The mark or mark type is shown in brackets.
- Understanding of marketing mix strategy or planning
- Explanation of specialist/niche markets
- Explanation of international marketing
- Explanation of globalisation and economic globalisation
- Knowledge of BRICs, trade blocs / customs unions.
- Making use of the business context:
- HD design, manufacture and supply circuit boards to specialised market in which quality more important than price
- HD's high reputation.
- Findings in market report
- Price becoming more important
- Changing geographical location of customer enquiries – BRICs markets
- Increased proportion of enquiries not being converted
- Sales breakdown is 40% Q, 30% US, 30% other.
- Directors have ambitious objectives including long-term growth.
- HD's existing marketing strategy/methods are limited to use of website
- Change in product to make more environmentally friendly
- Role of website manager as responsible for marketing
- Analysis:
- Building of chains of arguments linked to Knowledge and Application points raised above drawing out an implication or consequence for HD.
- Currently very successful company with increasing sales based on reputation that could be used in promotional activity to further increase sales
- International sales already important to HD and offer possibility for expansion.
- Geographical shift in enquiries indicates need to develop international markets.
- Increased focus on CSR as a marketing tool to differentiate HD and build brand image to increase sales
- Globalisation and multinational companies mean international and domestic competition more intense so may need to increase promotional spending or reduce price to be more competitive.
- Evaluation:
- Only award EVAL if the candidate has also demonstrated APP.
- Reasons why it is essential to review marketing strategy
- Increasing economic collaboration may restrict market opportunities in some areas so need to act quickly
- More competition so international marketing becomes more important to maintain sales
- Other factors may be more important in international markets – e.g. price, quality, technology to make sales
- Need for more data regarding location of customers
- Possible changes in country Q may diminish importance of international marketing
- Justified conclusions on any changes or on no change
- Need for change in organisational structure to enhance focus on marketing e.g. dedicated marketing specialist required.
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