marketing strategies HSC questions

Question 1

Short-answer question

XYZ Ltd produces sports shoes which are worn by elite athletes and the general public in North America. XYZ Ltd is keen to expand into Europe and Asia.

What is ONE possible benefit to XYZ Ltd of using global branding as a marketing strategy? (2 marks)

Source: Q23a, 2012 HSC paper

Answer 1

Sample answer: By using global branding XYZ Ltd will be using the same name, term, symbol or logo in
different markets leading to lower costs.

Question 2

Short-answer question

XYZ Ltd produces sports shoes which are worn by elite athletes and the general public in North America. XYZ Ltd is keen to expand into Europe and Asia.

Describe TWO physical distribution issues that XYZ Ltd will have to consider as part of their expansion. (4 marks)

Source: Q23b, 2012 HSC paper

Answer 2

Sample answer:
Warehousing – goods must be stored in convenient locations to adequately service major population centres and/or transport routes. XYZ Ltd needs to decide how many and what size warehouses are needed so that customers get their orders as quickly as possible. The more warehouses involved, the higher the cost.

Transport is the movement of products by air, rail, water etc. The choice of transport method
for XYZ depends on the speed required and distances that need to be covered. This is not a
perishable product and can be stored and packaged accordingly. Insurance is also needed
when products need to be transported – this adds extra costs.

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

Answers could include: Transport, warehousing, inventory

Question 3

Multiple-choice question

What is the most likely reason that a business would use price skimming?
(A) To encourage export sales
(B) To achieve market share quickly
(C) To gain high profits when demand is strong
(D) To reverse the decline stage of the product life cycle

Source: Q9, 2013 HSC paper

Answer 3

Answer: C

Question 4

Multiple-choice question

A car company advertises its new luxury car as more exciting and fun to drive than its competitors’ cars.

What strategy is the car company using?
(A)	 Opinion leader
(B)	 Personal selling
(C)	 Positioning
(D)	 Public relations

Source: Q12, 2013 HSC paper

Answer 4

Answer: C

Question 5

Multiple-choice question

Company XYZ allocates most of its marketing budget to advertising.

What approach has XYZ adopted?
(A)	 Selling approach
(B)	 Market approach
(C)	 Customer approach
(D)	 Production approach

Source: Q15, 2013 HSC paper

Answer 5

Answer: A