Pearson Edexcel IGCSE · Business
2 multiple-choice questions marked as you go, and 4 written questions with worked solutions. All on The marketing mix.
A business decides to enter a highly competitive market by setting the price of its new organic snack bar significantly lower than its competitors to encourage consumers to switch brands and to gain a large market share quickly.
Which pricing strategy is the business applying?
A company identifies that its flagship product has a high market share in a rapidly growing industry (a 'Star'), while another product has a high market share in a mature, slow-growing industry (a 'Cash Cow').
According to the Boston Matrix, how would the company typically manage the cash flow between these two products?
Explain one reason why a new business might choose to use penetration pricing rather than price skimming when launching a product in a highly competitive market.
Write your answer out first, then check it against the worked solution.
Analyze the trade-off a business faces when choosing a price skimming strategy for an innovative new product in terms of its impact on profit margins and market share.
Write your answer out first, then check it against the worked solution.
The following diagram shows the product life cycle of a popular soft drink brand, 'Sparkle-Pop', illustrating the stages from Introduction to Decline. The product has recently entered the 'Decline' stage.
(a) Define the 'Decline' stage of the product life cycle. (1 point)
(b) Suggest two extension strategies the company could use to inject new life into 'Sparkle-Pop'. (2 points)
(c) Explain how changing the packaging of the drink could act as an extension strategy. (2 points)
Write your answer out first, then check it against the worked solution.
Aura Tech is a manufacturer of premium smartphones. Their current flagship model, the Aura-G10, has a manufacturing cost of \( \$480 \) per unit. The company is considering different pricing strategies for its upcoming launch in a new international market.
(a) Calculate the selling price of the Aura-G10 if Aura Tech uses a cost-plus pricing strategy with a \( 60\% \) mark-up. (2 points)
(b) Analyze two reasons why price skimming might be a more appropriate strategy than penetration pricing for a luxury electronics brand. (3 points)
(c) The Aura-G10 is currently in the 'Growth' phase of its product life cycle. Evaluate whether viral advertising via social media is a more effective promotional method than product trials for maintaining this growth. (3 points)
Write your answer out first, then check it against the worked solution.
* The content provided by thinka is generated by AI and may not always be accurate or up-to-date. Please use it as a supplementary resource and verify with official materials.
This page can show you how a good answer looks. It cannot tell you what your answer was missing. thinka marks your written work against the real mark scheme in about 15 seconds.
Want more questions like these? Get a fresh set on this topic, marked as you go.
Practise More