Ecommerce
Businesses buy and sell through websites, apps and online marketplaces.
CAIE IGCSE Business 0264 - Paper 1
3.3.5 Marketing mix - ecommerce
Topical Past-Paper Questions
Why it’s here: Ecommerce, digital promotion and how technology changes marketing decisions and strategy.
Key concepts to revise
The main ideas to know for 3.3.5 Marketing mix - ecommerce.
Digital promotion
Search, social media and targeted advertising help reach online customers.
Benefits
Online trading can extend reach, operate continuously and reduce some costs.
Risks
Security, delivery, technology and strong price competition can create problems.
Exam material
Past-paper questions
Past-paper question
0450/13/O/N/24
[6] marks
LRL makes skincare products including face cream. It is a private sector business in country X. One of LRL’s objectives is to contribute to sustainable development. Maintaining customer loyalty is important and the Marketing Director knows a business must have an appropriate marketing mix. He is analysing data to calculate the value of LRL’s market share. An extract is shown in Fig. 3.1. The total value of sales of skincare products in country X for 2023 was $120 million.
((e) Explain two elements of the marketing mix. Which do you think is the most important element for a business? Justify your answer. [6]
Past-paper question
0450/11/O/N/24
[6] marks
Mitchell is an entrepreneur. He wants to start up a business selling books. As part of his business plan Mitchell has carried out some market research. An extract is shown in Fig. 2.1. Mitchell will use microfinance as a source of finance. He wants to know whether the opportunities of using ecommerce for a new business are greater than the threats.
(e) Do you think the opportunities of ecommerce for a new business are greater than the threats? Justify your answer. [6]
Past-paper question
0450/11/M/J/24
[2] marks
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.
b) Identify two ways legal controls over marketing might affect a business. [2]
Past-paper question
0450/11/M/J/24
[4] marks
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) Outline two possible threats to Pamela’s business of using e-commerce. [4] Threat 1: Threat 2: