CIE IGCSE Topical Past Paper 1

3.3 Promotion

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0450/13/M/J/2025

MDZ manufactures a range of chocolate bars. It has 300 employees. MDZ purchases its ingredients from suppliers in the local area. Acting in an ethical way with its stakeholder groups is important. MDZ has products at different stages of the product life cycle. The business is also developing a new product. The Marketing Director needs to make decisions about the packaging and the price of the new product. She knows it is important for a business to use a suitable method of sales promotion for a new product.

(e) Explain two possible methods of sales promotion a business could use for a new product. Which is likely to be the best method to use? Justify your answer. [6]

0450/12/M/J/2025

NFC manufactures shoes using batch production. Quality assurance is used to maintain quality. NFC uses market segmentation. The Marketing Director is reviewing NFC’s product range. He knows there are both benefits and limitations to developing new products. He also knows the
promotion of products is important.

(b) Identify two aims of promotion. [2]
Aim 1:
Aim 2:

0450/12/M/J/2024

GTB is a business which operates in the tertiary sector. It owns 5 cafés selling food and drinks. The business uses social media as its method of promotion. The Finance Manager, Moeen, is analysing GTB’s financial statements. An extract is shown in Table 2.1. He is considering ways to improve GTB’s profit margin. Moeen knows there are other users that are interested in the accounts of a business.

Extract from GTB’s financial statements 2023
Revenue
$600 000
Profit
$150 000
Capital employed
$750 000
Profit margin
25%
Table 2.1

(d) Explain two advantages to GTB of using social media as its method of promotion. [6]
Advantage 1:
Explanation:

Advantage 2:
Explanation:

0450/12/F/M/2024

Suliman owns a small business which sells t-shirts on its website. He operates as a sole trader. Suliman is analysing data for his existing business. An extract from this data is shown in Table 4.1. Suliman wants to open his first shop and needs to decide on a suitable location. He is considering which type of sales promotion to use for the new shop.

Extract from Suliman’s data for his existing business
Break-even output
500 t-shirts
Current sales
550 t-shirts
Selling price per t-shirt
$3.99
Variable cost per t-shirt
$1.99
Table 4.1

(c) Outline two methods of sales promotion Suliman could use for the new shop. [4]

Method 1:
Method 2: