The sales promotion in Fig. 5.1 is advertised in a local newspaper. Fig. 5.1 Sales promotion Use Fig. 5.1 to help you answer the following questions.

Mark scheme

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

1. [2] Email (1) written communication sent via the internet (1)
2. [2] Social media, (1) e.g. ask questions on social media network (1)
3. [2] Free trial means that customers will get used to the product (1) and it is easy to just keep it/forget to return it in time (1) increasing sales (1)
4. [2] Cuts out the retailer (1) saving manufacturer money (1)
5. [2] Cheaper than some other types of sales promotion, (1) e.g. discount (1)
6. [2] The manufacturer may have surplus stock to get rid of (1) this may be a quick and efficient way to do it (1)
7. [2] The manufacturer may be going out of business (1) this may generate cash to pay debts (1)
8. [2] The manufacturer has tried other methods of promotion that did not work (1) so must try something different to increase sales/profit/stay in business (1)
9. [3] Yes - can provide information/pictures of furniture (1) in a display advertisement or in a leaflet insert (1) local customers can be targeted (1) can be kept for reference (1)
10. [3] No - The advertisement may not stand out (1) may only be in black and white (1) not everyone buys/sees a local newspaper (1) so may not see the advertisement (1) so sales will not increase (1)
11. [3] Customers can only make payment by credit card and debit card. (FALSE)
12. [3] Customers can remove items from their shopping cart before checkout. (TRUE)
13. [3] Customers can make negative product reviews. (TRUE)
14. [6] To provide an eshopping experience, a retailer will need to: have the latest technology, e.g. eshop software, and specialised IT support which is a big expense
15. [6] design an attractive and user-friendly eshop to tempt consumers to use their website instead of a competitors or going to a high street store
16. [6] provide efficient end-to-end order processing and re-stocking 24/7 to meet/satisfy customers' expectations
17. [6] support a variety of efficient payment methods to attract a variety of customers
18. [6] provide an easy process for customers to return goods, instead of going back to a shop
19. [6] provide reliable delivery which will increase costs in comparison to a store
20. [6] Analysis and Evaluation: Some consumers are resistant to change and will not use online/internet shopping so retail stores are unlikely to stop all together.
21. [6] Also, deliveries of online purchases may be lost/stolen/not delivered on time/increase traffic congestion and pollution which may make customers unhappy so they might return to high street stores.
22. [6] However, as eshops have become increasingly reliable, more consumers shop online so more retail stores will close, or will not expand/improve/modernise their retail outlets because they have higher overhead costs than an eshop.
23. [6] To remain competitive, many retailers have been forced to sell online, just to survive.