NFC manufactures shoes using batch production. Quality assurance is used to maintain quality. NFC uses market segmentation. The Marketing Director is reviewing NFC's product range. He knows there are both benefits and limitations to developing new products. He also knows the promotion of products is important. Identify two aims of promotion. Aim 1: Aim 2: .......................................................................................................................................
Exam No：0450_s25_qp_12 Year：2025 Question No：1(b)
Answer:
Award 1 mark for each aim (max 2).
Points might include:
- To raise awareness/inform/remind people about products/services
- To persuade/attract (new) consumers / increase sales/revenue
- To create/maintain brand/company image/reputation
- Ensure/build customer loyalty/encourage repeat purchases
- To introduce new products on to the market
- To compete with competitors' products/differentiate from competitors
Other appropriate responses should be credited.
Points might include:
- To raise awareness/inform/remind people about products/services
- To persuade/attract (new) consumers / increase sales/revenue
- To create/maintain brand/company image/reputation
- Ensure/build customer loyalty/encourage repeat purchases
- To introduce new products on to the market
- To compete with competitors' products/differentiate from competitors
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
3.3.5.1. Define and explain the concept of e-commerce
3.3.5.2. The opportunities and threats of e-commerce to business and consumers
3.3.5.3. Use of the internet and social media networks for promotion
Solution:
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