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O-LevelBusiness StudiesMarketing7115/22 · Oct/Nov 2018 · Q220 Marks

Identify and explain two methods of primary research PP could use to research the market in country Z.

  1. (a)Identify and explain two methods of primary research PP could use to research the market in country Z.[8]
  2. (b)Consider the advantages and disadvantages of the following three ways PP could start selling its products in country Z. Recommend which way PP should choose. Justify your answer.[12]

Mark scheme

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

  1. [1] Method: Questionnaire identified
  2. [1] Explanation of Questionnaire: lower response rate / relatively cheap method to gather consumer opinions / easy to collate responses
  3. [2] Application mark for Questionnaire (contextual reference to designs of pottery/dining sets)
  4. [1] Method: Survey identified
  5. [1] Explanation of Survey: cheap method / easy to collate responses / may not reach target audience
  6. [2] Application mark for Survey (contextual reference to designs of pottery/dining sets)
  7. [1] Method: Interview identified
  8. [1] Explanation of Interview: face-to-face completion of questions / qualitative data / interviewer bias
  9. [2] Application mark for Interview (contextual reference to designs of pottery/dining sets)
  10. [1] Method: Focus group identified
  11. [1] Explanation of Focus group: group of people familiar with the product
  12. [2] Application mark for Focus group (contextual reference to designs of pottery/dining sets)
  13. [1] Method: Consumer panel identified
  14. [1] Explanation of Consumer panel: randomly selected group of people – opinions gathered / relatively expensive to carry out
  15. [2] Application mark for Consumer panel (contextual reference to designs of pottery/dining sets)
  16. [1] Method: Observation identified
  17. [1] Explanation of Observation: trained researchers watch how consumers behave and interact in the market
  18. [2] Application mark for Observation (contextual reference to designs of pottery/dining sets)
  19. [1] Form a joint venture with a retailer in country Z (Advantage): Can benefit from local knowledge/more ideas
  20. [1] Form a joint venture with a retailer in country Z (Advantage): Increase sales and likelihood of success
  21. [1] Form a joint venture with a retailer in country Z (Advantage): Have more control
  22. [1] Form a joint venture with a retailer in country Z (Disadvantage): Have to share profit
  23. [1] Form a joint venture with a retailer in country Z (Disadvantage): May have disagreements and may not work well together
  24. [1] Sell to retailers in country Z (Advantage): Knowledge of the market in country Z
  25. [1] Sell to retailers in country Z (Advantage): Has retail outlets across country Z - no need for PP to set up outlets
  26. [1] Sell to retailers in country Z (Advantage): Local retailer may cover some distribution costs such as warehousing costs
  27. [1] Sell to retailers in country Z (Advantage): Saves set up costs of a PP store
  28. [1] Sell to retailers in country Z (Disadvantage): PP has reduced profit as retailer expects a profit margin
  29. [1] Sell to retailers in country Z (Disadvantage): Less control over how the pottery is displayed
  30. [1] Sell online to customers in country Z (Advantage): PP keeps profit margin of the retailer
  31. [1] Sell online to customers in country Z (Advantage): Sells directly to customers so gets to know customers' wants and needs better
  32. [1] Sell online to customers in country Z (Advantage): Wider market so higher sales likely
  33. [1] Sell online to customers in country Z (Advantage): Can sell at a cheaper price as lower costs
  34. [1] Sell online to customers in country Z (Disadvantage): Increased costs of packaging and delivery
  35. [1] Sell online to customers in country Z (Disadvantage): Possibility of pottery being broken in transit
  36. [1] Sell online to customers in country Z (Disadvantage): Some customers may not have access to the internet/may not see website
  37. [1] Sell online to customers in country Z (Disadvantage): Danger of fraud/hacking
  38. [1] Sell online to customers in country Z (Disadvantage): Refunds/exchanges may be more difficult
  39. [1] Sell online to customers in country Z (Disadvantage): Increase in storage costs
  40. [1] Sell online to customers in country Z (Disadvantage): Cannot touch the product

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About this question

Topic
Marketing, O-Level Business Studies (syllabus 7115). Structured question, 20 marks.
Source
O-Level Business Studies, Oct/Nov 2018 Paper 2 Variant 2, question 2.

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