Claire runs a small business that organises children's birthday parties. She provides entertainers and food. Claire uses advertising and sales promotions, such as discounted offers in leaflets, to attract her customers.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2018). The mark or mark type is shown in brackets.

1. [4] 4 x 1 marks Max 2 marks for only advertising OR sales promotion Advertising is informing (1) persuading consumers to buy goods (1) e.g. TV advertising (1) whereas sales promotion is any attempt to boost sales quickly / short-term boost / motivate consumers to buy (1) special offer (1) Advertising positions a product or service against that of competitors to convey a brand message to consumers / to enhance its value in the consumer's eyes / to spread information (1) whereas sales promotions include a variety of strategies designed to offer purchasers an extra incentive to buy / to promote sales / usually in the short-term (1) Advertising is emotional in nature (1) e.g. perfumes, makeup and jewellery need imaginative advertising to create the allure needed to sell these products (1) whereas sales promotions, on the other hand, are unemotional in their approach (1) e.g. money-off coupon for cereal appeals to the consumer's rational mind because the consumer weighs the price of one cereal brand versus others (1) Advertising uses indirect and subtle methods to create a brand image (1) while sales promotions are much more direct (1) Advertising for a mobile phone service might emphasise the network coverage area, speed and the many styles of phones available (1) whereas a mobile phone sales promotion might emphasise a free phone for signing a two-year contract if sign-up is within the next month (1)
2. [2] 1 mark for each advantage Cheap Can be kept for reference / long lasting Can be targeted at a particular audience Can be passed around to other people Can supply details/information Usually in colour.
3. [4] 1 mark for each action and one mark for each description × 2 Apologise (1) in letter / telephone / in person (1) Allow refund (1) to customer of all/part monies paid / for the poor entertainment (1) Offer another party for free (1) using another entertainer (1) Find out what went wrong (1) e.g. questionnaire to affected party hosts / what she needs to do to improve the service (1) Contact/inform entertainer (1) and discuss with them how to improve / not use them again / hire new entertainer instead / provide training (1)
4. [8] Reasons for setting up a website: A website provides information such as dates/times Would enable Claire to be more widely known, if that's useful to her Can use multimedia, with videos and visuals of the children's parties Website can be easily changed to offer sales promotions at short notice The number of responses can be monitored Claire may have technical problems when displaying material Websites can be expensive to construct Coverage may be restricted to those who can use/have the internet May be difficult for Claire to get the website seen by potential customers as she will have to compete with other websites offering the same service. Reasons for continuing with sales promotions: Sales promotions are discounts, competitions, free gifts, free samples etc. Sales promotions cost money and therefore reduce profitability They are short-lived as they only last for a certain period Sales promotions attract new or returning customers who may be persuaded to give Claire's parties a go However, if the sales revenue increases, this should lead to increased profitability. Evaluation: Claire is a small business so it may not be worth the time or expense of setting up a website, unless she can do it herself with the apps now available. She only wants to attract local consumers, not worldwide. Specifically targeted social media advertising might be better. It might be best to continue using sales promotions with a cheaper method of advertising such as social media to promote her children's parties.