MDZ manufactures a range of chocolate bars. It has 300 employees. MDZ purchases its ingredients from suppliers in the local area. Acting in an ethical way with its stakeholder groups is important. MDZ has products at different stages of the product life cycle. The business is also developing a new product. The Marketing Director needs to make decisions about the packaging and the price of the new product. She knows it is important for a business to use a suitable method of sales promotion for a new product. Identify two roles of packaging. Role 1: Role 2: .......................................................................................................................................

Business

IGCSE&ALevel

CAIE

Exam No：0450_s25_qp_13 Year：2025 Question No：1(a)

Answer:

Award 1 mark per role (max 2).
Points might include:
- Carry information about product / meet legal requirements
- Protect the product
- Promote brand image / name / (brand) reputation
- Help advertise / attract customers
- Add value
- Ease of transport
- Easy / convenient to open / use
- Ease of storage / display
- Suitable for product to fit in / contain the product

Other appropriate responses should be credited.

Knowledge points:

3.3.1.1. The limitations and benefits of developing new products

3.3.1.2. Brand image; impact on sales and customer loyalty

3.3.1.3. The role of packaging

3.3.1.4. The product life cycle: main stages and extension strategies; draw and interpret a product life cycle diagram

3.3.1.5. How stages of the product life cycle can influence marketing decisions, e.g. promotion and pricing decisions

3.3.2.1. Pricing methods (benefits and limitations of different methods), e.g. cost plus, competitive, penetration, skimming, and promotional

3.3.2.2. Recommend and justify an appropriate pricing method in given circumstances

3.3.2.3. Understand the significance of price elasticity: difference between price elastic demand and price inelastic demand; importance of the concept in pricing decisions (knowledge of the formula and calculations of PED will not be assessed)

3.3.3.1. Advantages and disadvantages of different channels, e.g. use of wholesalers, retailers or direct to consumers

3.3.3.2. Recommend and justify an appropriate distribution channel in given circumstances

3.3.4.1. The aims of promotion

3.3.4.2. Different forms of promotion and how they influence sales, e.g. advertising, sales promotion

3.3.4.3. The need for cost-effectiveness in spending the marketing budget on promotion

Answer:

Knowledge points:

Solution:

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