Business 9609/43 October/November 2025: question paper and mark scheme

Mark scheme

1 Evaluate the effectiveness of SH’s marketing strategy between 2017 and 2025. 20 Level AO1 Knowledge and AO2 Application AO3 Analysis AO4 Evaluation understanding 2 marks 8 marks 7 marks 3 marks Description Description Description Description 3 7–8 marks 6–7 marks Developed analysis of Effective evaluation the overall strategy A developed that identifies judgement/conclusion is made connections between in the business context that causes, impacts and/or draws together developed consequences. evaluative comments which balance some key arguments in the business context. 2 2–3 marks 2 marks 4–6 marks 3–5 marks Developed knowledge Developed application Developed analysis of Developed evaluation of relevant key term(s) of relevant point(s) to individual strategic • A developed and/or factor(s) is used the business context. element(s) that judgement/conclusion is to answer the question. identifies connections made. between causes, • Developed evaluative impacts and/or comments which balance consequences. some key arguments. 1 1 mark 1 mark 1–3 marks 1–2 marks Limited knowledge of Limited application of Limited analysis that Limited evaluation relevant key term(s) relevant point(s) to the identifies connections • A judgement/conclusion is and/or factor(s) is used business context. between causes, made with limited to answer the question. impacts and/or supporting consequences. comment/evidence. • An attempt is made to balance the arguments. • 1 Level AO1 Knowledge and AO2 Application AO3 Analysis AO4 Evaluation understanding 2 marks 8 marks 7 marks 3 marks Description Description Description Description 0 0 marks 0 marks 0 marks 0 marks No creditable response. No creditable response. No creditable response. No creditable response. Evaluate the effectiveness of SH’s marketing strategy between 2017 and 2025. Responses may include: AO1 Knowledge and understanding Knowledge (max 1 mark) can be awarded for knowledge about marketing strategy, can be awarded for understanding of the operations strategy up to two marks including: • Planning the marketing strategy (a) the contents of a marketing plan: objectives, resources, research, marketing mix (b) the benefits and limitations of marketing planning • Approaches to marketing strategy (a) the need for the marketing strategy to be consistent with the business, the product and the market (b) the need for and development of a coordinated marketing strategy (c) the development of marketing strategies that are focused towards achieving specific marketing objectives (d) the changing role of Information Technology (IT) and Artificial Intelligence (AI) in marketing • Strategies for international marketing (a) the implications for marketing of increased globalisation and economic collaboration (b) the importance of international marketing for a business (c) international markets – identification, selection and entry (d) whether a business in a given situation should develop an international market through pan -global marketing or maintain local differences (e) choosing a strategy, in a given situation, to develop a global market (f) the factors influencing the method of entry into international markets • Knowledge of how to plan a marketing strategy (do not reward repetition of the contents of Appendix 1, but further knowledge of the elements is rewardable) 1 Marketing strategy involves the marketing mix . Some basic knowledge about operations strategy, so only K. Marketing strategy involves the marketing mix . Which includes the 4 Ps Price, 1 K for identification and 1 DEV Product, Promotion and Place . for a point of explanation Marketing strategy involves the marketing mix . Which includes Price, Product, 1 K for identification and 2 DEVs Promotion and Place .which can be formulated through market research for two points of explanation . Note: – Candidates can gain full marks for AO1 from one term that is explained ( + + ) or from two terms partially explained ( + and + ). No other AO2, AO3 OR AO4 marks can be awarded without AO1. 1 AO2 Application Application (max 2 marks) can be awarded for applying knowledge, analysis or evaluation of marketing strategy to SH between 2015 and 2025, including: • SH was set up by Sarah 20 years ago • Employs technology specialists to develop innovative products • Innovation is the company’s competitive advantage • Rapid growth from 5 to 520 employees in 20 years • Private limited company • Products sold via a specialist computer game stores • Created marketing strategy in 2017 • Aim of marketing strategy is to become market leader for gaming headsets in country D by 2025 • Economic boom in 2017 • SH’s product is voted ‘Best Gaming Headset in country D’ in leading consumer survey in 2019 • Annual revenue peaks in 2021 • 45% share of gaming headset market in 2021 – SH was market leader • Economic recession in 2023 • NHT launched a competing range of gaming headsets in 2023 • SH’s products are more technologically advanced than NHT’s • NHT’s products are half the price of SH’s headsets • SH’s market share falls in 2025 and NHT becomes the market leader AO3 Analysis ( and and ); Analysis is likely to be based on SH’s objective in 2017 to become the market leader for gaming headsets in country D (Appendix 1). • Analysis of the objective. The marketing strategy is focused on internal factors, e.g. technological innovation. Does it consider the impact of changes in the external operating environment? • Price skimming strategy – helps to recoup the initial investment into developing the technology but may not work in an economic recession and/or with competition from a rival selling cheaper products. • Focus on digital marketing and television/billboard advertising. Also product endorsement with a popular celebrity. • Headsets sold through specialist computer game stores – no online retail options. • Market research shows that consumers value technological advancements when choosing a gaming headset. Price is second most important consideration. However does the economic climate affect the priorities? • 70% of gaming headsets are bought by consumers under 30 years old – how does this affect the marketing strategy? 1 Candidates’ analysis must be business facing. They may identify an element of marketing strategy and provide developed analysis to get to L2, this then needs to be counterbalanced to get to L3. If a candidate does this twice, they will gain 8 marks. A clear multi strand answer is accepted showing a connection between a developed L2 Analysis with another developed L2 analysis. AO4 Evaluation Evaluation ( and and ) including: Candidates MUST answer the question – how effective was SH’s marketing strategy between 2015 and 2025. The development and support of this judgement will help them to move through L2 and L3. To award L3 the answer must be in context and draw upon the previous analysis. Evaluation will largely depend on the points raised in the analysis. • A judgement on the success of the marketing strategy between 2017 and 2025. • Discussion over how the success of the marketing strategy can be judged and what that judgement could depend upon; link to the marketing objective in 2017, other measures of success for a private limited company (profitability, profit, shareholder’s objectives, measures of size). • The marketing strategy should develop over time. The strategy was developed in 2017 – should it be revisited more often than after eight years? • The extent to which the success of SH between 2017 and 2025 is based on the marketing strategy or other factors. • Other external influences on SH between 2017 and 2025 other than the marketing strategy (e.g. the state of the economy; economic growth) social factors (e.g. interest in the latest technology amongst consumers), technological factors (e.g. increased time to play computer games in 2020/2021 due to the pandemic), lack of competition. 1 Accept all valid responses. No credit L1 including: L2 including: (developed L3 (developed supporting (limited supporting evidence) evidence with context) supporting evidence) SH’s marketing SH’s marketing SH’s marketing strategy was not SH’s marketing strategy was not strategy was not strategy was not effective because it is not effective because it is not achieving effective effective because it achieving its objective of becoming its objective of becoming the market is not achieving its the market leader as the annual leader as the annual total revenue objective of total revenue is falling is falling to 26 million dollars and becoming the NHT is forecasted to be the market market leader leader instead leading to SH losing market share. The effectiveness The effectiveness of The effectiveness of the marketing The effectiveness of the marketing of the marketing the marketing strategy depends upon the strategy depends upon the external strategy depends strategy depends external market environment SH is market environment SH is in. If the upon the market upon the external in. If the environment is overall not environment is overall not market environment performing well then, we would performing well then, we would SH is in. expect that the marketing strategy expect that the marketing strategy might not be as effective because might not be as effective because of of external factors that negatively external factors that negatively affect it affect it. In 2024 Country Ds economy was in recession so NHT the competitor was performing better as their prices are half of SH’s prices.

Mark scheme

2 Advise Sarah on whether PEST analysis is the most useful approach for SH in developing a new business 20 strategy. 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 identifies connections is made in the business context between causes, impacts that draws together developed and/or consequences. evaluative 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) element(s) that identifies judgement/conclusion is term(s) and/or to the business connections between made. factor(s) is used context. causes, impacts and/or • Developed evaluative to answer the consequences. comments which balance question. some key arguments. 2 Level AO1 Knowledge AO2 Application AO3 Analysis AO4 Evaluation and 2 marks 8 marks 7 marks understanding 3 marks Description Description Description Description 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 relevant key relevant point(s) between causes, impacts made with limited supporting term(s) and/or to the business and/or consequences. comment/evidence. factor(s) is used context. • An attempt is made to balance to 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 Advise Sarah on whether PEST analysis is the most useful approach for SH in developing a new business strategy. Responses may include: AO1 Knowledge and understanding Knowledge (max 1 mark) can be awarded for knowledge about approaches, can be awarded for understanding of the approaches up to two marks including: • Blue ocean strategy aims to combine product differentiation with low-cost to develop new markets and demand.It is about finding uncontested markets to gain a competitive advantage. Comparison with red ocean strategy awardable. • Scenario planning - Managers consider the main risks and uncertainties and adopt different strategies for different scenarios. Flexible approach. • uncertainties that affect their business. • SWOT analysis: Strengths, weaknesses, opportunities, threats. SWOT is very easy to construct so can be subjective. • Porter’s five forces – threats of substitutes, supplier power, threat of entry, buyer power, competitive rivalry • Core competence framework – core competencies lead to the development of core products. Core products are not necessarily sold to final consumers. Instead, they are used to produce many end -user products. • Ansoff matrix – Market penetration, market development, diversification, product development. Different options open to a marketing manager when considering new opportunities for sales growth. It includes thinking of the market in which the business is going to operate and the product(s) it plans to sell. Business decides whether to remain in the existing market or to enter new ones along with whether to sell existing products or develop new ones. • Force field analysis - It weighs up the potential advantages and disadvantages of a decision before a choice is made. It gives managers an insight that will allow them to strengthen the forces supporting a decision and reduce the forces that oppose it. • Decision trees - consider all of the options open to a manager, the different possible outcomes resulting from these options, the chances of these outcomes occurring, and the economic returns from these outcomes. • PEST analysis – It focuses on the macro environment (Note: Mentioning of PEST or political, economic, social and technological is not Knowledge as they are in the question and case respectively). 2 Other knowledge marks may be awarded for: • The meaning and purpose of a business strategy; plan of action to achieve the vision and objectives of a business and upon which decisions are made. • The meaning and purpose of strategic management (the entire process of identifying, choosing and implementing the planning of business activity): analysis (identifying options and understanding the business, market and external environment), choice (between strategic options) and implementation (the decision making of implementing a strategic decision). • (do not reward repetition of Appendix 4, but understanding of the model is rewardable). For identifying an approach and follows for the definition of the approach up to two DEV to gain the full 3 marks. Award for any explanation of a policy that affects a business’ strategy, up to a max of 2 marks. Blue ocean strategy . Some basic knowledge about a policy, so only K. Blue ocean strategy , aims to combine product differentiation with low-cost to 1 K for identification and 1 DEV for a point of explanation develop new markets and demand. . Blue ocean strategy , aims to combine product differentiation with low-cost to 1 K for identification and 2 DEVs develop new markets and demand. . It is about finding uncontested markets for two points of explanation to gain a competitive advantage. . Note – Candidates can gain full marks for AO1 from one term that is explained ( + + ) or from two terms partially explained ( + and + ). The mentioning of PEST or Political, Economic, Social and Technological cannot be awarded for knowledge as it is stated in the case study but any understanding of it can. No other AO2, AO3 OR AO4 marks can be awarded without AO1. AO2 Application Application (max 2 marks) can be awarded for applying knowledge, analysis or evaluation of approaches and their usefulness on developing a new business strategy for SH. 2 Candidates MUST apply this to SH’s business model – a lot of this will come from the appendices • Data about from Appendix 4; • Political – government actions to encourage more investment into country D from multinational companies • Economic – recovery from economic recession, rising inflation and high cost of producing goods • Social – increased online shopping, importance of technological advances when choosing a gaming headset, price sensitivity of consumers, increased immigration by young people • Technological – increasing use of artificial intelligence in market research and potential for new product techniques • SH’s revenue declining. New competitor became market leader. • Market share reduced • Asked an external management consultant business to create a PEST analysis. • New business strategy needed to enable SH to return to profitability. AO3 Analysis ( and and ) , including: Analysis for the usefulness of PEST analysis: • Analysis of the political forces: • government actions to encourage more investment into country D from multinational companies which may lead to new competitors entering the gaming headset market in country D • Analysis of the economic forces: • recovery from economic recession – the marketing strategy was created during an economic boom but the elements of the strategy may need to change for a recession. SH continued with the same strategy that was effective during prosperous economic times • high inflation and high cost of production – squeezed disposable incomes may affect consumer buying habits/choices and the ability of SH to make a profit. Limited scope for further price rises to increase profit margins. • Analysis of the social forces: • increased online shopping – the impact of this on SH’s decision to sell headsets through retail stores • importance of technological advances when choosing a gaming headset – consumers value the technological advances of SH’s products but is price becoming more important due to the current economic climate • price sensitivity of consumers • increased immigration by young people. 70% of gaming headsets are purchased by consumers under 30 years old. • Analysis of the technological forces: • increased use of artificial intelligence in market research – does SH use this technology in its market research? • potential for new production techniques – could they reduce the cost of producing the headsets to offset the high cost of production? However, would capital investment be recovered by the production cost savings? 2 Analysis for the usefulness of PEST analysis; • Enables the consultant to consider the impact of external factors on the potential success of the business strategy and the different strategic choices • Internal policies/strategies may need to change to achieve success in light of the external factors Arguments against the usefulness of PEST analysis: • The model is relatively simplistic • The results are a snapshot in time – the forces will change. Are the factors identified in 2025 relevant for 2027? • The strategy for the future will be based on estimates/predictions • This approach was completed by an external management consultancy business with no investment in SH – to what extent can this information be relied upon to base future decisions? • Does not consider new external influences in the future Candidates may choose to contrast other approaches with PEST. Candidates need to identify an approach and provide developed analysis to get to L2, this then needs to be counterbalanced to get to L3. If a candidate does this twice, they will gain 8 marks. 2 AO4 Evaluation Evaluation ( and and ) including: L1 limited supporting evidence – answering the question with a brief explanation L2 developed supporting evidence - Reason is developed further L3 developed supporting evidence with context – Level 1 and 2 is answered in context. • A judgement about the usefulness of PEST analysis when developing a new business strategy for SH. • Judgement may depend upon; the validity of the data, the external environment in country D, whether SH is staying in the same market, or whether it will diversify, the use of other approaches in tandem with PEST analysis. • Weighing up of the relevant arguments for the use of PEST analysis in making decisions about developing a new business strategy for SH. • Weighing up of the relevant arguments for the use of other approaches instead of (or in tandem with) PEST analysis. Accept all valid responses. 2 Exemplars and annotations for AO4 (assuming relevant AO1 has been awarded): No credit (no L1 (limited L2 (developed supporting supporting L3 (developed supporting evidence) evidence) supporting evidence with evidence) context) Overall SWOT analysis Overall SWOT analysis seems to Overall SWOT analysis seems Overall SWOT seems to be the better be the better approach to develop to be the best approach to analysis seems to approach to develop the business strategy. This is develop the business strategy be the better the business strategy because SWOT will cover all to achieve profit through approach to This is because SWOT areas that PEST will. However, diversification. However, the develop the will cover all areas that the effectiveness of SWOT needs effectiveness of SWOT needs business strategy PEST will not. to be considered as it is all to be considered as it is all qualitative values. This means qualitative values. This means that SH will make choices to that SH will make choices to diversify with quantitative factors. diversify with quantitative factors. Especially that SH’s financials such as Total annual revenue has dropped from 46 m in 2021 to 26 m in 2024 and ROCE from 8 to (4). 2 No credit (no L1 (limited L2 (developed supporting supporting L3 (developed supporting evidence) evidence) supporting evidence with evidence) context) Overall I think SH Overall I think SH Overall I think SH should use Overall I think SH should use should use several should use several several approaches to achieve a several approaches to achieve approaches to approaches to achieve new business strategy. SH a new business strategy. SH achieve a new a new business should use SWOT and PEST to should use SWOT and PEST to business strategy strategy. SH should look at the external and internal look at the external and internal use SWOT and PEST environment and have a full environment and have a full to look at the external picture of the business This will picture of the business This will and internal allow SH to look at their strengths allow SH to look at their environment and have and find new ways to recover strengths and find new ways to a full picture of the which will increase sales and recover which will increase business profits. sales and profits. SH’s strength of innovation allows it to be different and demand premium prices which means when recession recovers and with their extensive advertising and use of celebrity to promote their products sales and profits will start increasing again.