Business 9609/42 February/March 2025: question paper and mark scheme

Mark scheme

1 Evaluate DCE’s marketing strategy between 2019 and 2024. 20 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 and 1 Marketing objectives may include sales maximisation and increasing market share . DEV for a point of explanation Promotion is the communication from the business to the customer . It includes 1 K for identification and 2 advertising, sales and direct promotion . The aim of promotion is often to increase DEVs for two points of explanation awareness of a product . 1 AO2 Application Application (max 2 marks) can be awarded for applying knowledge, analysis or evaluation of marketing to DCE between 2019 and 2024. • DCE goal is to have high quality services which means they will have a premium brand image • Social media accounts to promote the business can be used to evaluate the marketing mix • Any use of the Market research information in context • Social media subscribers increase rapidly • DCE’s sales promotion techniques: loyalty scheme and free lessons for referrals • The use of pricing methods in context such as price skimming • 10% increase in revenue objective • Use of AI • Any use of the case content in context between 2019 and 2024. AO3 Analysis ( and and ) Analysis is likely to be based on the different marketing activities and the impact on DCE, including: • Social media allows students to access the business which will increase brand recognition as seen by the increase in subscribers this will bring in more customers and sales. However, they may be missing customers that are in different platforms therefore losing on potential sales. • The use of social media would allow the business to find out what customers want especially parents as they would be looking for online teaching business. This would allow the business to have a USP and beat the intense competition. However, while social media can be effective has it reached the target customers effectively? • The marketing strategy failed as DCE did not achieve the goal of increased revenue by 10% as in 2022 revenue starts to decrease which would lead to less retained earnings and less ability for the business to expand. However, maintaining quality will allow them to stand out and possibly profits can start to rise. • DCE goal is to have high quality which means they will have a premium brand image this would allow them to charge premium prices increasing revenue and profits. However, the competitors have other USP that may take away customers especially if they care about affordability. 1 AO4 Evaluation ( and and ). Evaluation will depend upon which element/s of marketing have been discussed previously: • DCE’s marketing strategy was successful as they were able to increase sales rapidly in the beginning specifically 2020 and have more subscribers this means they would be able to eventually achieve their 10% revenue increase. However, this depends on the intensity of competition and their ability to keep innovating to beat any external factors they may face. • DCE’s marketing strategy was not successful as the revenue decreased which means they may be struggling to have retained profits and repay any debts this would lead them to fail. • DCE’s marketing strategy was not successful as revenue decreased leading to lower profits which means they will need to apply new services and follow the new proposed marketing objectives for success. However, this success is dependent on how well they apply their upcoming product development and maintaining brand identity. Accept all valid responses.

Mark scheme

2 Advise Daniel on the importance of transformational leadership to ensure the survival of DCE. 20 Indicative content AO1 Knowledge and understanding Transformational leadership: the leader works with teams to identify the need for change, creates a vision to inspire people to accept change and implements change with the cooperation of the team. Knowledge can be awarded for any relevant business knowledge about leadership and/or transformational leadership. Do not reward repetition of the contents of the case. Any explanation of the contents is rewardable. • Leadership – motivating a group of people towards business objectives/common goal • the purpose of leadership • the qualities of a good leader • Transformational leadership – change culture of organisation to achieve improved performance during a time where significant change is needed for the business to survive. • Charisma, inspiring, offers new challenges to employees, understands individual needs of each team member • Any leadership theories – trait, behavioural, contingency, power and influence and transformational Award for any explanation of relevant business knowledge, up to a max of 2 marks. AO2 Application Application (max 2 marks) can be awarded for applying knowledge, analysis or evaluation of (transformational) leadership to DCE between 2019 and 2024. • Private Limited Company – limited liability • Social media accounts to promote the business • Social media subscribers increase rapidly • If transformational leadership is used employees can be focused and follow targets which mean DCE can achieve their goals of brand identity and higher revenue • Any information used from the market research results • Change may create a culture of demotivated employees and this was a concern of Carl’s • Use of AI • Any use of information from the case in context of discussion about leadership styles/theories. 2 AO3 Analysis ( and and ) Analysis is likely to be based on the how transformational leadership can help the extension strategy succeed. • If transformational leadership is used employees can be focused and follow targets which mean DCE can achieve their goals of brand identity and higher revenue increasing profits however, this also means that if employees underperform they will get punished which may create a culture of demotivated employees lowering performance and this was a concern of Carl’s • Daniel can also help Carl achieve his goal in the marketing strategy which means that DCE will understand customers well and utilise their USP giving them a competitive advantage increasing revenue and profits. However, this will cost the business a lot of money and thus can reduce profit. • Contingency leadership may work for DCE as it adapts to different situations and allows different approaches which means employees can have a varied environment that will support different types of employees thus increasing motivation, better services and higher revenue. • The market research has shown that DCE can help students in many ways such as self -confidence and revision. This will boost the company’s main business of teaching, and this will lead to word of mouth which will increase customers and profits. However, this depends on the coaching skills provided to students and how they respond to the tools. AO4 Evaluation ( and and ). Evaluation will depend upon which element/s that have been discussed previously. • Judgement on whether transformational leadership theory will be helpful in the success of DCE in this business context • Whether this is dependent on different factors,. • Transformational leadership will allow every member of the business to be challenged with a new culture concentrating on needs of employees especially as a service business this leads to better customer service allowing to achieve the new objectives of maintaining a strong brand identity and 10% increase in revenue. • Transformational leadership is very important to the success of DCE as if good decisions were made , such as how to fund the business, and add value to the current products or develop new services then DCE would be able to gain revenue again and achieve its new goals. Furthermore this will allow DCE to beat the incoming competition and gain back lost customers, revenue and profits. However, this depends on how Carl responds to the leadership style along with the employees. 2 • Transformational leadership is not important to the success of DCE as there are other factors that DCE need to address here to make sure that the objectives are achieved. They need to ensure that the force field analysis is explored correctly along with other strategy analyses to ensure that all factors have been discovered such as technological, social etc. This will ensure the success of DCE allowing revenues to increase again. However, this depends on how research is made and the accuracy of the information gained along with the implementation. Accept all valid responses.