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Mark scheme

Marking points from the official mark scheme (Oct/Nov 2016). The mark or mark type is shown in brackets.

1. [2] (a) Knowledge [2 × 1] - award one mark for each relevant reason
2. [2] (a) Analysis [2 × 1] - award one mark for a relevant explanation for each reason
3. [4] (a) Application [2 × 2] – award two application marks for each reason
4. [1] (a) Relevant point: To find out customer wants
5. [1] (a) Relevant point: To find out about competitors
6. [1] (a) Relevant point: To find out the price customers are willing to pay
7. [1] (a) Relevant point: To find out if there is a market/demand for the new service
8. [1] (a) Relevant point: To find if there have been any changes in customer preferences
9. [3] (a) Award a maximum of three additional marks for each explanation – 2 of which must be applied to this context – of the reason why market research is important before starting the new service.
10. [10] (b) Knowledge/Analysis/Evaluation – award up to 10 marks using the levels-based mark scheme below. Level 3: At least 2 x Level 2 + 9-10 marks for well justified conclusion as to which element is the most important in the introduction phase of the product life cycle. 7-8 marks for some limited judgement shown in the conclusion as to which element is the most important in the introduction phase of the product life cycle.
11. [6] (b) Knowledge/Analysis/Evaluation – award up to 10 marks using the levels-based mark scheme below. Level 2: 4-6 marks Detailed discussion of price and/or promotion for the new service. Pricing strategies should be discussed. Method of promotion identified and explained how it should be used to attract new customers.
12. [3] (b) Knowledge/Analysis/Evaluation – award up to 10 marks using the levels-based mark scheme below. Level 1: 1-3 marks Outline of price and/or promotion for the new service.
13. [2] (b) Award up to 2 additional marks for relevant application.
14. [1] (b) Relevant point for Price: Promotional pricing as in introduction phase
15. [1] (b) Relevant point for Price: Penetration pricing as trying to enter a new market
16. [1] (b) Relevant point for Price: Competitive pricing as need to price at a similar level to other businesses to increase sales of new service
17. [1] (b) Relevant point for Promotion: Advertise in local newspapers or leaflets through doors or posters in local shops
18. [1] (b) Relevant point for Promotion: Important to increase awareness of the service as it is new