Business 9609/42 February/March 2024: question paper and mark scheme

Mark scheme

1 Evaluate the effectiveness of CC’s marketing strategy between 2010 and 2020. 20 Level AO1 Knowledge AO2 Application AO3 Analysis AO4 Evaluation and 2 marks 8 marks 7 marks understanding 3 marks Description Description Description Description 3 7–8 marks 6–7 marks Developed analysis of Effective evaluation the overall strategy that A developed judgement/conclusion is identifies connections made in the business context that between causes, impacts draws together developed evaluative and/or consequences. comments which balance some key arguments in the business context. 2 2–3 marks 2 marks 4–6 marks 3–5 marks Developed Developed Developed analysis of Developed evaluation knowledge of application of individual strategic • A developed relevant key relevant point(s) to element(s) that identifies judgement/conclusion is made. term(s) and/or the business connections between • Developed evaluative comments factor(s) is used to context. causes, impacts and/or which balance some key answer the consequences. arguments. question. 1 1 mark 1 mark 1–3 marks 1–2 marks Limited Limited Limited analysis that Limited evaluation knowledge of application of identifies connections • A judgement/conclusion is made relevant key relevant point(s) to between causes, impacts with limited supporting term(s) and/or the business and/or consequences. comment/evidence. factor(s) is used to context. • An attempt is made to balance answer the the arguments. question. 0 0 marks 0 marks 0 marks 0 marks No creditable No creditable No creditable response. No creditable response. response. response. 1 Indicative content: AO1 Knowledge and understanding Knowledge (max 1 mark) can be awarded for any relevant business knowledge about marketing, including: • Marketing objectives • Demand and supply • Markets (consumer, industrial, local, national and international) • Mass and niche marketing • Market segmentation • Customer relationship marketing • Market research (primary and secondary) and sampling • The marketing mix (product, price, place, promotion) • Elasticity (price, income and promotional) • Product development, including R&D • Sales forecasting • The need for the marketing strategy to be consistent with the business, the product and the market • The need for, and development of, a coordinated marketing strategy • The development of marketing strategies that are focused towards achieving specific marketing objectives • The changing role of Information Technology (IT) and Artificial Intelligence (AI) in marketing • The contents of a marketing plan: objectives, resources, research, marketing mix • The benefits and limitations of marketing planning Award for any explanation of relevant business knowledge, up to a max of 2 marks. Marketing strategy is when a business plans to meet their marketing objectives . 1 K for identification Marketing objectives may include sales maximisation and increasing market share . and 1 DEV for a point of explanation Promotion is the communication from the business to the customer . It includes 1 K for identification advertising, sales and direct promotion . The aim of promotion is often to increase and 2 DEVs for two points of explanation awareness of a product . 1 AO2 Application Application (max 2 marks) can be awarded for applying knowledge of marketing/marketing strategy, to CC between 2010 and 2020: Award one for each application of knowledge to CC between 2010 and 2020. • CC operates its own branded clothing retail stores only in the US • CC has been a popular choice with both customers and investors • Revenue and profit were consistently high until 2008 • CC used to have only four main seasonal ranges: spring, summer, autumn and winter • CC struggled to meet the changing needs of its customer base • Competition from online only retailers reduce CC’s market share • New marketing objectives in 2010–11 (any data in Appendix 1) • CC invests in digital marketing and increases the number of sales promotions • CC adapts its marketing mix and begins to sell online • Revenue from the largest city centre stores decreases. Profit continues to decrease. Dividend payments are reduced and share price decreases • Sulwar Singh is appointed Marketing Director in 2016 • The marketing objectives set in 2010 are not achieved • John is set an objective to restore CC’s brand reputation • Any data from Appendix 1–4 AO3 Analysis Analysis is likely to be based on CC’s objectives in 2010 to increase sales volumes, customer base and pricing strategy (Appendix 1). Analysis of the impact of CC’s marketing strategy ( and and ) including: • Analysis of the objective: although specific about a measure of success (percentage growth) the time frame in which the objective is to be met is 9 years in the future. The objective is measurable but too vague. The objective is perhaps too easily achievable. • Investment into digital marketing and sales promotions – too many options to measure the effectiveness of each strategy. • Changes to the marketing mix – completely changes the brands values and identity – this could alienate existing customer base 1 • Focus on digital marketing – low/zero cost promotion – however can be unpredictable and out of the businesses control • Customer feedback in 2013 highlights customer complaints – can this data be trusted? How was this survey completed– may lack the targeting necessary to give accurate and usable data • The pricing method chosen (dynamic pricing), may have led to a reduction in revenue – which could have led to the fall in profit • Although market share is lost and inventories are high, revenue has begun to increase which signifies that customers are increasing spend per visit • Profit decreased between 2008 and 2020 even as revenue increased – although profit was not the objective of CC, likely to be important, especially as the share price is reducing • Customer satisfaction has significantly decreased – CC has developed a reputation for poor quality products. AO4 Evaluation Evaluation ( and and ) including: Evaluation will largely depend on the points raised in the analysis. • A judgement over the success of the marketing strategy between 2010 and 2020 • Discussion over how the success of the marketing strategy can be judgement and what that judgement could depend upon; link to the marketing objective in 2010, other measures of success for a public limited company (profitability, profit, shareholder objectives, other stakeholder objectives, measures of size) • The extent to which the growth in revenue of CC between 2016 and 2020 was based on the marketing strategy or other external factors • The extent to which Sulwar’s experience in online marketing influenced the decisions and took the brand away from its original values • Other external influences on CC between 2010 and 2020 other than the marketing strategy (e.g. the state of the economy; economic growth) social factors (e.g. trends and fashions) • The extent to which CC updated and changed its marketing strategy between 2012 (the marketing mix) and 2020 Accept all valid responses.

Mark scheme

2 Advise CC on an operations strategy to enable its future survival and growth. 20 Level AO1 Knowledge AO2 Application AO3 Analysis AO4 Evaluation and 2 marks 8 marks 7 marks understanding 3 marks Description Description Description Description 3 7–8 marks 6–7 marks Developed analysis of Effective evaluation the overall strategy that A developed judgement/conclusion is identifies connections made in the business context that between causes, impacts draws together developed evaluative and/or consequences. comments which balance some key arguments in the business context. 2 2–3 marks 2 marks 4–6 marks 3–5 marks Developed Developed Developed analysis of Developed evaluation knowledge of application of individual strategic • A developed relevant key relevant point(s) to element(s) that identifies judgement/conclusion is made. term(s) and/or the business connections between • Developed evaluative comments factor(s) is used to context. causes, impacts and/or which balance some key answer the consequences. arguments. question. 1 1 mark 1 mark 1–3 marks 1–2 marks Limited Limited Limited analysis that Limited evaluation knowledge of application of identifies connections • A judgement/conclusion is made relevant key relevant point(s) to between causes, impacts with limited supporting term(s) and/or the business and/or consequences. comment/evidence. factor(s) is used to context. • An attempt is made to balance answer the the arguments. question. 0 0 marks 0 marks 0 marks 0 marks No creditable No creditable No creditable response. No creditable response. response. response. 2 Indicative content AO1 Knowledge and understanding Knowledge (max 1 mark) can be awarded for any relevant business knowledge about operations, including: • The transformational process (inputs, outputs, added value, factors of production) • Efficiency, effectiveness, productivity and sustainability • Capital and labour intensity • Operations methods (job, batch, flow, mass customisation) • Inventory management (types of inventory, buffer, re-order level, lead time, supply chain management, JIT and JIC) • Capacity utilisation • Outsourcing • Location • Scale of operations (economies and diseconomies of scale) • Quality management (quality control, quality assurance, TQM, benchmarking) • The meaning and purpose of an operations strategy • The influence of human, marketing and finance resource availability on operations decisions • The changing role of Information Technology (IT) and Artificial Intelligence (AI) in operations management • The need for flexibility with regard to volume, delivery time and specification • Process innovation: changing current processes or adopting new ways of producing products or delivering services • The main features of an ERP programme • How ERP can improve a business’ efficiency in relation to: inventory control, costing and pricing, capacity utilisation, responses to change, workforce flexibility, management information • The aims and purposes of lean production (Kaizen, quality circles, simultaneous engineering, cell production, JIT manufacturing and waste management) • Operations planning (network diagrams, critical path analysis) Award for any explanation of relevant business knowledge, up to a max of 2 marks. AO2 Application Application (2 marks) can be awarded for applying knowledge of operations/operations strategy, to CC. Award one for each application of knowledge. • John Dee replaces Sulwar in 2020 • John insists on new quality control procedures 2 • The share price remains low, but stable • A new and distinctive operations strategy to reduce costs and increase efficiency is needed • CC operates its own branded clothing retail stores only in the US • CC has been a popular choice with both customers and investors • CC used to have only four main seasonal ranges: spring, summer, autumn and winter • Competition from online only retailers has reduced CC’s market share • John is set an objective to restore CC’s brand reputation • Any relevant data from Appendix 1–4 AO3 Analysis Analysis of the impact of CC’s operations strategy ( and and ) including: • Human resources availability – are younger graduates able to understand the original target market – does their vision align with an original brand reputation and John’s strategy • Marketing availability – will marketing graduates be able to create an original but improved marketing strategy which does not create the same problems 2010–16 • Revenue has dropped by 25% since 2008 (and profit has dropped by 90%) – does CC have the available funds to invest in new marketing techniques/AI/IT • Methods of regaining lost customers using the operations function • Improving flexibility and innovation within operations; increase sales volume – to increase customer retention • The use of and ERP programme – cost/benefit analysis of this and the effects of this on CC • Introduction of lean production – cost benefit analysis of this and the effects of this on CC • Any other relevant operations methods AO4 Evaluation Evaluation ( and and ) including: • A judgement about an operations strategy for CC to enable CC’s survival and growth • Judgement may depend upon: market research findings, external influences in the US (PEST), internal and external influences on CC (SWOT), the reactions of potential competitors in the US, the extent of the investment to meet the new strategy • Weighing up of the relevant arguments for the different future strategies • The board of directors (and shareholders) level of risk that they would be willing to accept Accept all valid responses.