CAIE IGCSE Business 0264 - Paper 1

3.3.4 Marketing mix - promotion

Topical Past-Paper Questions

Why it’s here: Advertising, sales promotion and choosing an appropriate promotional method.

CAIE IGCSE Business 0264 Paper 1 Topic 3.3.4

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Key concepts to revise

The main ideas to know for 3.3.4 Marketing mix - promotion.

Advertising

Paid communication can inform, persuade and remind a chosen audience.

Sales promotion

Discounts, competitions and special offers encourage short-term purchases.

Promotion aims

Promotion can launch products, build brand image or increase sales.

Choosing promotion

Cost, target market, product type and objectives determine the best method.

About this topic

Marketing mix - promotion includes selected 0450 questions that continue to align with the Cambridge IGCSE Business 0264 syllabus.

Keep every answer connected to the business in the case study.

Use the case-study evidence
Develop each explanation fully
Show working for calculations
Justify the final recommendation

Before you begin

1Read the command word
2Check the marks available
3Study every table or figure
4Apply the answer to the business

Exam material

Past-paper questions

Past-paper question 0450/13/M/J/25 [6] marks

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]

Open question

Past-paper question 0450/12/M/J/25 [2] marks

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:

Open question

Past-paper question 0450/12/M/J/24 [6] marks

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:

Open question

Past-paper question 0450/12/F/M/24 [4] marks

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:

Open question