marketing process HSC questions

Question 1

Multiple-choice question

Customers at a furniture store are asked to give their postcodes at the checkout.

What is this an example of?
(A) Primary research to determine target market
(B) Secondary research to determine target market
(C) Primary research to determine product life cycle
(D) Secondary research to determine product life cycle

Source: Q3, 2015 HSC paper

Answer 1

Answer: A

Question 2

Multiple-choice question

Which of the following includes both an opportunity and a threat from a SWOT analysis?
(A) Low interest rates and high gearing
(B) Loyal employees and outdated technology
(C) Excellent management and strong competition
(D) Strong economic growth and increased tax rates

Source: Q7, 2013 HSC paper

Answer 2

Answer: D

Question 3

Short-answer question

Robin and Pat are planning to establish a sporting goods business. They have decided to adopt a niche market approach to maximise profits.

Outline ONE method that could be used by this business to collect relevant data about its target market. (2 marks)

Source: Q25a, 2013 HSC paper

Answer 3

Sample answer: Survey – Pat and Robin could gather information by asking a number of people the same questions. These could be about the respondent’s knowledge, attitudes, preferences and buying behaviour.

Answers could include:

• Primary data – collected by Pat and Robin to suit their specific needs – eg survey,
observational research
• Secondary data that has been collected in the past from either internal or external sources
eg ABS data

Question 4

Short-answer question

Robin and Pat are planning to establish a sporting goods business. They have decided to adopt a niche market approach to maximise profits.

Evaluate their decision to adopt a niche market approach. (6 marks)

Source: Q25b, 2013 HSC paper

Answer 4

Sample answer: A niche market has a specific, narrow customer base. Pat and Robin can use their niche marketing approach to avoid direct competition with larger department stores. They can recruit more specialised staff that will have greater product knowledge and stock more specialised equipment that will allow them to gain a competitive advantage. This should help them to gain sales and profits. For this reason the niche market approach would be best for
them. The decision to adopt a niche market by Robin and Pat may help them maximise their profits if the niche market is big enough.

[Students may take an alternative approach that, if correct, should be rewarded.]

Question 5

Business-report question

Kingland Office Supplies operates in a large NSW city in a highly competitive market. A paid manager is responsible for the day ­to ­day running of the business.

The owners are concerned about the low profitability of the business.

Investigations by the owners indicate the following problems:
• customers find the product mix unappealing
• poor management of cash flow
• poor accounts receivable turnover compared to similar businesses.

The manager has also identified low prices offered by larger competitors as a cause of the low profitability.

You have been employed as a consultant by the owners. Write a report to the owners recommending marketing and financial management strategies to improve the performance of the business. (20 marks)

Source: Q26, 2013 HSC paper

Answer 5

Sample answer:
Marketing strategies:
• Market segmentation, product/service differentiation and positioning
• Products – goods and/or services
– branding
– packaging
• Price including pricing methods – cost, market, competition-based
• Pricing strategies – skimming, penetration, loss leaders, price points.

Financial management strategies:
• Cash-flow management
– cash-flow statements
– distribution of payments, discounts for early payment, factoring
• Working capital management
– control of current assets – cash, receivables, inventories
• Profitability management
– revenue – marketing objectives.

[Students may take an alternative approach, which if correct, should be rewarded.]