Grade 11 - Business & Management Revision

TIPS for preparing for your B&M Exam:

1. Write out definitions.
2. Memorize acronyms. Put them on your wall/fridge/door. Look at them.
3. Create mind maps of the concepts. Remember to study actively (writing things out by hand) not
passively (e.g. staring at your computer screen). This helps put things into your long term memory.
4. Read the business news---this will help bring the concepts to life
5. Remember: S.T.O.P. (stakeholders, time, opportunity costs, prioritize arguments)
6. Think of the Toilet Paper. Purpose!
7. Practice writing case papers by applying theories (see below and examples in text book)
8. Time yourself when writing case papers and definitions.
9. Reduce. Reduce. Reduce. Write the ideas/concepts on a large A3 sheet of paper. Then reduce it to A4.
Then to index cards. The key is to make it a part of your long-term memory!
Acronyms:
How does a product live on?
P
R
R
N
P
E
What does Branding do?
P
A
I
N
S
The Role of Branding
L
L
R
I
S

4.1 The Role of Marketing

Full sentence answers are not required: SL 20 marks, 20 minutes HL 20 + 4 marks, 24 minutes
1

What are the two ways of measuring market size?

(2)

List four changes that may cause the market for a product to grow.

(4)

Give an equation for market share.

(1)

State two benefits of being the brand leader.

(2)

Define the term industrial markets.

(1)

What is the term for marketing that focuses on selling to the final, non-business, user of a
product?
(1)

List three particular factors that have to be considered when marketing services.

(3)

Explain the term market-oriented marketing.

(2)

Explain the term product-oriented marketing.

(2)

Give two reasons for producing a marketing plan.

(2)

11

(HL) What is asset-led marketing?

(2)

12

(HL) What does social marketing try to do? Give an example.

(2)

10

4.2 Marketing Planning

Full sentence answers are not required: SL 53 marks, 53 minutes HL: 53 + 13 marks, 66 minutes
1

What are the four key Ps of marketing?

(4)

What are the three additional Ps that mostly relate to marketing services?

(3)

Define marketing mix.

(2)

State three main factors that need to be taken into consideration when deciding the marketing mix of a
product.
(3)

What is a marketing audit?

(1)

What are the three key features of a marketing audit?

(1)

List five types of information that market research is generally used to find out.

(5)

What are the four main features of primary market research?

(4)

What are the four main features of secondary market research?

(4)

Give four commonly used sources of secondary data.

(4)

List three primary market research techniques.

(3)

10

11

12

State and explain five sampling techniques.

(10)

13

What is differentiated marketing?

(2)

14

State and explain the three main ways in which a market can be segmented.

(3)

15

What is market positioning?

(2)

16

Define the term corporate image.

(2)

(HL) State Porters Five Forces and identify the key force though which the others act.

(5)

17

18

(HL) Give three instances in which competitive rivalry is likely to be high.

(3)

19

(HL) What are the three main decisions that a model such as Porters Five Forces may be used to
make?
(3)

20

(HL) What is a time-series analysis of sales data?

(2)

4.3 Product
Full sentence answers are not required: SL 39 marks, 39 minutes HL 39 + 11 marks, 50 minutes
1

What is a consumer durable? Give an example.

(2)

What does product mix mean?

(2)

List five stages (arranged in order) in the process of developing a new product.

(5)

Draw and label a graph of the stages of the product life cycle. Add a line to represent the effect of an
extension strategy.
(7)

List five possible extension strategies.

(5)

Explain the main problem that a product with a very short life cycle may have.

(2)

Draw the Boston Consulting Group (BCG) Matrix.

(4)

Label the four different quarters of the matrix with the correct BCG names.

(4)

Add the following labels:

in the quarter with the highest positive cash flow

(1)

in the quarter with the biggest negative cash flow

(1)

in the two quarters with heavy promotional costs

(2)

Label each quarter with the name of the product life cycle stage it best reflects.

(4)

(HL) List four advantages of branding.

(4)

(HL) Identify the main feature of each of the following types of branding:

(4)

family

product

company

own label.

10

(HL) Give two advantages and one disadvantage of own-label branding.

(3)

Case Practice: Fast Eater

Fast Eater, a fast food restaurant company went public in 1975 and until 2000 had always made a profit.
From 2000, sales in Europe (the companys biggest market) started to decline. The following table gives
information on Fast Eaters current portfolio:
During the 1990s, Fast Eater opened stores worldwide at the rate of 250 a year. However, by 2004 Fast
Eater was closing restaurants and concentrating on attracting more customers into existing outlets.
Industry analysts suggest that the trend towards healthier food is affecting the popularity of the chain
and so Fast Eater is proposing the introduction of a new product to cater for the market. Newly
established health-food stores are becoming major competitors. Fast Eater is caught in a marketing war
with aggressive rivals. In addition, economic downturn in its major markets is affecting demand.
1.

Define the following terms:

(a.) market growth [2 marks]
(b.) market share [2 marks]

2.

Use the Boston Consulting Group Matrix to analyse Fast Eaters product portfolio. [6 marks]

3.

Suggest a new product for Fast Eater and devise a marketing mix (7Ps) to support your chosen
product. [8 marks]

10

4.4 Price
Full sentence answers are not required: SL 12 marks, 12 minutes HL 12 + 26 marks, 38 minutes
1

List four factors that may be taken into consideration when deciding the selling price of a product or
service. (4)

The cost of making a product is $10. Cost plus 40% pricing is used. Calculate the selling price.

a How would you calculate the selling price of a product using absorption cost pricing?

(2)

(2)

What is the biggest problem with using the above calculation in reality?

When may penetration pricing be used?

(1)

Under which two circumstances would a business use price skimming?

(1)

(2)

11

(HL) What does marginal cost mean?

(2)

(HL) Construct an equation to represent contribution.

(2)

Contribution =
8

(HL) What does the contribution contribute towards?

(1)

(HL) If a business with spare capacity has a profit after paying fixed costs, why might it decide to sell
additional items at a lower sales price? (2)

10

(HL) What is the difference between competition (going rate) pricing and destroyer pricing?(2)

11

(HL) Under what circumstances might a business use price discrimination?

(2)

12

(HL) Explain an example of a loss leader product in a supermarket.

(2)

13

(HL) Give two reasons why a business may use promotional pricing.

(2)

(HL) Give an example of psychological pricing.

(1)

14

12

15

(HL) In a supply and demand graph, what does demand mean? (2)

16

(HL) Give the equation for price elasticity of demand (PED).

(2)

PED =

17

a (HL) How would the PED equation given in your previous answer be adapted to calculate cross
elasticity of demand (XED)?
(2)

b (HL) For what type of products would a XED be calculated? (1)

18

(HL) How would the PED equation be changed in order to calculate income elasticity of demand (IED)
or advertising elasticity of demand (AED)?
(1)

19

(HL) PED is calculated to be 1.4. What does this mean?

(2)

13

4.5 Promotion
Full sentence answers are not required: SL 22 marks, 22 minutes HL 22 + 2 marks, 24 minutes
1

What is the difference between above-the-line and below-the line promotion?

(2)

What are the five main aims of advertising?

(5)

State four advertising media.

(4 = 2)

What three major factors determine which advertising media to use?

(3)

14

List seven examples of sales promotion methods.

(7)

Explain what place refers to in the context of marketing.

(2)

Give an example with two intermediaries to illustrate your answer.

(1)

(HL) What is supply chain management (SCM)?

(2)

15

Allez Snowboards Ltd. (ASL)

Allez Snowboards Ltd makes snowboards for the amateur enthusiast that are sold under the Allez brand name. Up
to the present time they have sold through snowsport wholesalers into the French retail market. Their reputation
for high quality at a low price means that their sales have been rising steadily over the six years since they were
established. Recent excellent reviews in a prominent snowboard magazine have prompted them to reconsider their
marketing strategy with a view to expanding sales in the home market and perhaps extending sales into the
international market. Alternatively, they could extend their product range into specialist areas such as snowboard
cross, freestyle or pipe, and so increase their market share. It has been suggested that market research should be
done to help Allez find out particular product features that could be improved prior to this expansion effort.
The snowboard market is an extremely competitive one. The market leader is well established, has a significantly
dominant market share and has the advantage of considerable economies of sale. On the other hand, Allez
outsource their boards to a manufacturer in Taiwan and so they have limited French overheads and are also able to
benefit from a strong euro. They hence use a competitive pricing strategy to undercut the prices of most of the
major competitors.
SL questions: 20 marks, 35 minutes
1

Describe what is meant by market share.

Explain two methods of primary research that Allez could use to help them to identify the perceived
strengths and weaknesses of their product.
(4)

(2)

Explain how market segmentation could help Allez to achieve a greater market share of the snowboard
market.
(6)

Discuss how branding may be important for the marketing of Allez snowboards.

(8)

HL questions: 25 marks, 45 minutes

1

Define the following terms:

a

market research

(2)

market leader.

(2)

Explain two problems that Allez could face if they continue to use competition pricing.

Examine the possible primary and secondary research that companies like Allez could use to ensure that
products are developed to fit market demands.
(6)

(6)

Evaluate two possible ways that Allez could extend their market internationally.

(9)

16