CIE IGCSE Topical Past Paper 1

3.33 Marketing mix – Place

045/11/M/J/2024

CFG is a social enterprise. It buys cocoa beans from local farmers and then uses the beans to make chocolate. Being ethical is important to the business. CFG has developed a new chocolate bar. The Marketing Manager plans to use skimming as its pricing method, and retailers as its distribution channel for the new product. He knows there are many legal controls over marketing that might affect a business.

(d) Explain one advantage and one disadvantage to CFG of using retailers as its distribution channel for the new product. [6]
Advantage:
Explanation:

Disadvantage:
Explanation:

0450/12/O/N/2023

Paolo wants to start up a business making cakes. He plans to sell all of his products to a wholesaler. Paolo knows the packaging for his products will be important. He has prepared some financial and sales data. An extract from this data is shown in Table 1.1. Paolo is considering using crowdfunding as a source of finance. He knows the business will also need working capital.

Extract from Paolo’s financial and sales data
Average price per cake	$6
Average cost per cake	$4
Forecast average number of cake sales per day	50

Table 1.1

(e) Do you think selling to a wholesaler is the best channel of distribution for a start-up business to use? Justify your answer. [6]