Identify and explain two ways in which marketing is important for DD.

Mark scheme

Marking points from the official mark scheme (May/June 2015). The mark or mark type is shown in brackets.

1. [2] Knowledge [2 × 1] - award one mark for each relevant way
2. [2] Analysis [2 × 1] - award one mark for a relevant explanation for each way
3. [4] Application [2 × 2] – award two application marks for each way
4. Award one mark for each relevant way (maximum of two), such as: to identify customer needs; to satisfy customer needs; to maintain customer loyalty; to gain information about customers/conduct market research/collecting data; to anticipate changes in customer needs; to raise awareness of new products; to advertise/promote the new products; to create a brand image; to persuade people to buy products; to increase sales; to attract new customers; reference to importance of the four P's; to help the business become more competitive
5. Award a maximum of three additional marks for each explanation – 2 of which must be applied to this context – of the ways marketing is important.
6. Indicative response: To identify customer needs [k] because David needs to know what types of cakes to bake [ap]. By producing the types of cakes which customers most want to buy will lead to higher sales [an]. Therefore the company is more likely to be successful and return a good dividend to David and his shareholders [ap].
7. Possible application marks for (a): cake manufacturing; food; shareholders; started 10 years ago in country x; constantly develops a new range of cakes; e-commerce; Figures from Appendix 2; new markets abroad; large supermarkets; small food shops.
8. There may be other examples in context which have not been included here.
9. Relevant points for (b) might include: Advantages of using e-commerce: Can sell to a wider market; Can be used for advertising; Customers can order any time; New markets reached; Direct customer contact.
10. Advantages of selling to supermarkets in other countries: Large/regular orders placed; Administration savings on fewer but larger order/economies of scale; Feedback from supermarkets on which products sell well; Display in supermarket promotes the cakes.
11. Knowledge/Analysis/Evaluation – award up to 10 marks using the levels-based mark scheme below.
12. Level 3: At least 2 × Level 2 + 9-10 marks for well justified recommendation as to the best way to increase sales compared to the other way.
13. Level 2: 7-8 marks for some limited judgement shown in recommendation as to the best way to increase sales.
14. Level 2: 4-6 marks Detailed discussion of advantages of e-commerce and advantages of selling to supermarkets in other countries. N.B. do not reward disadvantages
15. Level 1: 1-3 marks Outline the advantages of e-commerce and advantages of selling to supermarkets in other countries.
16. Level 1: 1 mark for each L1 statement (max of 3 marks), e.g. David can sell to a wider market.
17. Level 2: One L2 explanation can gain 4 marks and a further mark can be awarded for each additional L2 explanation (max 6 marks), e.g. David can sell to a wider market. This will allow the company to increase production and expand the business. If the cost of cake ingredients fall as output increases then this will help David to increase profits further. (4 marks for L2 answer + 1 application mark for mentioning cake ingredients.)
18. Level 3: For L3 to be awarded there needs to be at least two L2 marks awarded and then a recommendation which justifies which is the best way. Overall there will be higher costs involved in expanding the business by selling cakes online especially as the company sell food items. It will be difficult to maintain the quality of the cakes when they are posted out to customers. (L3) So although they can sell to a wider market they should take this option because of the difficulties of maintaining the quality of the cakes. (L3) It is much easier to deliver large quantities of cakes to supermarkets abroad as delivery will be in specialised containers to keep the cakes fresh (L3) and administration costs will be kept low by fewer but larger orders to process. (L3)
19. Award up to 2 additional marks for relevant application.
20. Possible application marks for (b): cake manufacturing; perishable products; food; constantly develops a new range of cakes; Figures from Appendix 2; new markets abroad; small food shops; automated production line; efficiency increases by 10% for option A; investment of $8m; 10 production employees for option B.
21. There may be other examples in context which have not been included here.