Explain four ways Yasin can advertise MB's products.

Mark scheme

Marking points from the official mark scheme (May/June 2022). The mark or mark type is shown in brackets.

1. [1] Way: Local radio
2. [1] Explanation: as the bakery attracts only local people so many potential customers may hear the advert.
3. [1] Way: Local newspaper/magazine
4. [1] Explanation: as a voucher could be included for money off bread.
5. [1] Way: Posters
6. [1] Explanation: in the window of the bakery shop to attract customers passing by.
7. [1] Way: Leaflets/fliers
8. [1] Explanation: can be handed out in the local town centre so that potential customers will know the location of the shop as it is new.
9. [1] Way: Social media
10. [1] Explanation: emphasise that he uses imported ingredients.
11. [1] Way: Packaging/carrier bags
12. [1] Explanation: emphasise the ethical image of the business.
13. [1] Way: Website/online/internet
14. [1] Explanation: if consumers are searching for local shops that sell bread so it can give information of the products and location of the shop.
15. [1] Way: Billboards
16. [1] Explanation: can be placed in busy areas of the local town directing them to the bakery location.
17. [1] Way: Sponsorship
18. [1] Explanation: local sports team may have shirts with the MB name to raise awareness of the bakery.
19. [1] Way: Word-of-mouth
20. [1] Explanation: existing customers recommend good bread/tasty bread to their friends and family.
21. [1] Option 1 - small cupcakes: Sales are higher by 3900 per month.
22. [1] Option 1 - small cupcakes: Total cost is $5000 per month.
23. [1] Option 1 - small cupcakes: Total revenue $8000 per month.
24. [1] Option 1 - small cupcakes: Profit per month is $3000, which is $1000 more than Option 2.
25. [1] Option 1 - small cupcakes: Break-even output is 2000 cupcakes a month.
26. [1] Option 1 - small cupcakes: Forecast margin of safety is 2000 per month.
27. [1] Option 2 - large birthday cakes: Total revenue $6000.
28. [1] Option 2 - large birthday cakes: Total cost is $4000 per month.
29. [1] Option 2 - large birthday cakes: Profit per month is $2000.
30. [1] Option 2 - large birthday cakes: Break-even output is 60 large birthday cakes a month.
31. [1] Option 2 - large birthday cakes: Forecast margin of safety is 40 per month.
32. [1] Justification (Option 1 recommended): Option 1 is the better one to choose as it has the higher profit by $1000 than Option 2 and a higher margin of safety (as a proportion of sales). Option 2 may have a higher predicted growth of sales, but this is only a forecast and may not happen. It is better to choose the more certain higher profit now than the possibility of higher sales later.
33. [1] Justification (Option 2 recommended): Option 2 is better than Option 1 as the gross profit margin is 8.33% higher. However, the future growth of sales is forecast to be higher and may lead to higher profits in the future.