'Using the Internet for marketing is essential to the success of a smartphone retailer.' Do you agree with this statement? Justify your view.

Mark scheme

Marking points from the official mark scheme (Feb/Mar 2020). The mark or mark type is shown in brackets.

1. [20] Level 5 (17-20 marks): Effective evaluation of whether using the Internet for marketing is essential to the success of a smart phone retailer.
2. [20] Level 4 (15-16 marks): Limited evaluation and good analysis of whether using the Internet for marketing is essential to the success of a smart phone retailer.
3. [20] Level 3 (11-14 marks): Analysis of whether using the Internet for marketing is essential to the success of a retailer.
4. [20] Level 2 (5-10 marks): Application and / or analysis of whether marketing is essential to the success of a business.
5. [20] Level 1 (1-4 marks): Knowledge and understanding of the Internet / marketing / retailer.
6. [20] Content for K&U, Application, Analysis & Evaluation: Clear understanding of the Internet. Clear understanding of marketing. Clear understanding of retailer. Reference to whether marketing is essential to the success of a business. Analysis: Internet (online) marketing – advertising / marketing which uses the internet, email and mobile communications to encourage direct sales via electronic commerce. Marketing is an important part of communicating with customers. There may be discussion of how any of the 4P's or 4C's are carried out using the Internet. Marketing informs and persuades customers to purchase which can result in high sales / customer loyalty / high market share. Relatively inexpensive – cost per potential customer reached. Easy to maintain up-to-date catalogue of products and prices – phones dynamic. Worldwide audience – good use of promotional budget. Use pop-ups on other websites. Target audience for smart phones likely to make strong use of internet. Viral marketing increasingly important in driving sales. Consumer interaction – visit website, make purchase, leave data about themselves plus feedback. Collects market research. Can email in questions. Cell phone target market made of younger segments already comfortable with use of internet, expect businesses to communicate with them by social media. Concerns about internet security. Convenient for consumers – 24/7 access from computers, laptops, tablets and smart phones. Easy to compare technical details of different phones to gain customer satisfaction and reduce number of returns. May need a retail outlet for those preferring direct contact. But buyers see phones of friends and buy the same thing for cheapest price. Global access to internet – increasing rapidly in all countries. Some countries have slow connections and computer ownership not widespread. Accurate measures and records - number of visitors and success of different promotions. Dynamic market to follow so helps keep up-to-date. Lower fixed costs – than operating a traditional retail store. Phones can be cheaper than rivals. Cost to keep website up-to-date and user-friendly. Dynamic pricing – easier to charge different prices to different customers using their on-line data. Cheaper than traditional retailer. Evaluation: The context is a smart phone retailer. This could be shown by naming brands, features or manufacturers of smart phones. On-line marketing on technological websites is highly appropriate for smart phones. What might the factors be that could explain / determine the success of a retailer? How important / essential is marketing or Internet marketing for the success of this business? What are the issues around the impact of internet marketing as opposed to traditional marketing? What factors might be more important / essential to the success of this business? Could quality of product, branding features, business reputation be more important in this market? Accept any other valid response.