Fig. 2 gives examples of advertising and sales promotion. [Figure 2]

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2011). The mark or mark type is shown in brackets.

1. [4] (a) Any two purposes × 2 marks each:
2. • to launch a new product – to give details, price, where to buy
3. • to persuade people to buy – by using methods of appeal and various media
4. • to give information – ingredients, price, location, sizes
5. • to increase sales so increasing profits
6. • to give public information - health warnings, changes to benefits
7. • to gain attention so that people will buy
8. • to remind customers – of existing products
9. • to enhance image to develop brand loyalty.
10. Any other relevant purpose.
11. [1] (b)(i) B
12. [1] (b)(ii) C
13. [2] (c) Any two points × 1 mark each:
14. • electronic billboards
15. • mechanical display boards
16. • advertisements that could combine sound and vision/moving digital images (2 marks)
17. • and are constantly changing (scrolling)
18. • use light-emitting diodes (LED) or similar techniques
19. • example of location (1).
20. Any other relevant point.
21. NB do not confuse with answers that describe posters/billboards.
22. [6] (d) Level 2 (4-6 marks)
23. Candidate has discussed the statement and shown with reasons whether or not advertising adds to the costs of production. (One-sided argument, award 4 marks max.)
24. Advertising is necessary to make people aware of products or services. The amount of advertising used will depend on the budget of the producer, the type of product, as well as the size of the market. Many kinds of advertising media are very expensive. Television advertising is very costly but targets a mass audience. Newspaper and magazine advertising are also expensive but longer-lasting and can give more information. Whatever advertising is used, it must be allowed for in the costs of production and so adds to these costs, especially if the advertising is unsuccessful.
25. On the other hand, the successful advertising of many products can lead to lower prices for these products. Advertising should create market demand. This means that larger quantities of a product need to be made. Mass production methods can be introduced and economies of scale, such as greater use of machinery and purchasing economies, can be introduced so that the unit costs are reduced. These lower costs of production can then be passed on to the consumer as lower prices.
26. It all depends on the type of product being advertised. For some products advertising will add to their costs, for some products it will mean lower prices.
27. Level 1 (1-3 marks)
28. Candidate has made some statements about the use of advertising to sell products.
29. Advertising is used to sell products. Advertising is expensive, especially television and newspaper advertising. Advertising has to be paid for. It is added to the cost of the product.
30. [6] (e) Any six points × 1 mark each or three well-explained points × 2 marks each:
31. (To achieve maximum marks there must be comment on the Internet both as a method of advertising and as a method of communication. 4 marks max if only one considered.)
32. • many people in many countries now have access to the Internet and so are able to communicate with one another/to see what is available for purchase
33. • Internet enables communication to be achieved worldwide, so enabling people to communicate across time zones and countries
34. • it enables the use of email, a rapid, written form of communication
35. • it enables producers to show what they have for sale and to give details including prices
36. • it enables e-commerce to take place and provides facilities for purchasing online
37. • it enables people to post blogs for others to read
38. • it is interactive, enabling people to ask questions and to receive replies
39. • it enables the use of social networks
40. • it saves time/cost by using tele/video-conferencing
41. • it enables the use of webcams/Skype to communicate with people abroad.
42. Any other relevant point.