OCR GCSE (9-1) Business (J204) · Spec 2.1, 2.2, 2.3 and 2.4
Marketing
Read the notes, then try the questions. Each one is marked the moment you press Check, and shows the right answer and why.
Key ideas
- Marketing helps a business identify customers, understand what they need, inform them and increase sales.
- Primary research is collected by the business itself, for example a questionnaire, interviews or a focus group. Secondary research already exists, for example census data.
- Market segmentation splits customers into groups with similar features, such as age or income, so the business can aim its marketing at each group.
- The marketing mix is the four Ps: product, price, promotion and place.
- Pricing methods include cost-plus, competitor-based, penetration (low at first), price skimming (high at first), promotional pricing (a temporary cut) and a loss leader (sold below cost to bring shoppers in).
- Promotion includes free samples, competitions and point of sale displays in the shop.
- Data can be qualitative (opinions) or quantitative (numbers). The product life cycle runs introduction, growth, maturity, decline.
Key terms
- Primary research
- Information a business collects itself, for example by a survey.
- Secondary research
- Information that already exists, such as census data.
- Market segmentation
- Splitting a market into groups of customers with similar features.
- Marketing mix
- The four Ps: product, price, promotion and place.
- Loss leader
- A product sold below cost to attract customers who then buy other things.
- Promotional pricing
- A temporary cut in price.
- Qualitative data
- Opinions and reasons, such as comments from a focus group.
- Quantitative data
- Numbers that can be counted or measured, such as sales figures.
Common mistakes
- Calling the business's own survey "secondary". If the business collects it, it is primary.
- Treating a promotional price cut as permanent. It is temporary.
- Mixing up pricing and promotion. A loss leader is a pricing method. Free samples and competitions are promotion.
- Writing about a different P from the one in the question. Check whether it asks about price, product, promotion or place.
Exam tip
For "Identify" or "State" questions (1 to 2 marks), a short answer is enough. For "Explain" or "Analyse", name the method, then say why it suits the business in the text. A generic answer that could be about any firm loses the application marks.
Free practice questions
5 questions, 11 marks. Answer, then press Check. The marking guide explains how the marks are worked out. Nothing is saved.
- Question 1 · Multiple choice[1 mark]
Which is a purpose of marketing within a business?
- Question 2 · Matching[4 marks]
Match each marketing activity to the purpose it mainly serves.
- Question 3 · Multiple choice[1 mark]
Which is a secondary source of market research?
- Question 4 · Multiple choice[1 mark]
A supermarket sells a loaf of bread below the price it paid for it, to attract shoppers into the store. This is a:
- Question 5 · Matching[4 marks]
Match each promotional method to its description.