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. Explain two benefits to NFC of using market segmentation. Benefit 1: Explanation: Benefit 2: Explanation:

Business

IGCSE&ALevel

CAIE

Exam No：0450_s25_qp_12 Year：2025 Question No：1(d)

Answer:

Award 1 mark for identification of each relevant benefit (max 2).

Award 1 mark for each relevant reference to this business (max 2).
Award 1 mark for each relevant explanation (max 2).
Points might include:
- Can design/produce goods to meet specific needs of consumers/know what to produce [k] so that costs/materials are not wasted (producing wrong product) [an] especially as plan to develop new products [app]
- Help target advertising/marketing strategies [k] to ensure maximum number of people see the products [an] which is an aim of promotion [app]
- Identify gaps in the market/new opportunities [k] for its shoes [app] which can help spread risk [an]
- May make marketing expenditure more effective [k] so do not waste money/resources [an]

Other appropriate responses should be credited.

Knowledge points:

3.4.1.1. Importance of different elements of the marketing mix in influencing consumer decisions in given circumstances

3.4.1.2. Recommend and justify an appropriate marketing strategy in given circumstances

3.4.2.1. Impact of legal controls on marketing strategy, e.g. misleading promotion, faulty and dangerous goods

3.4.3.1. Growth potential of new markets in other countries

3.4.3.2. Problems of entering foreign markets, e.g. cultural differences and lack of knowledge

3.4.3.3. Benefits and limitations of methods to overcome such problems, e.g. joint ventures, licensing

Answer:

Knowledge points:

Solution:

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