Tag: KS4

The Big Adventure Company offers a range of niche holidays, such as walking Cannock Chase and climbing Pudding Hill.

Which one of the following would be the most appropriate marketing strategy for The Big Adventure Company to use?

Select ONE answer:

1. Penetration pricing
2. Specialist magazines
3. Special offers
4. National television

Show the workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Business Studies KS4 & KS5 classes

The answer is 2

1. Not correct – because penetration pricing would not be needed as there is less competition and demand is likely to be price inelastic.
2. Correct – A niche market is a small part of the overall market that has certain special characteristics or marketing strategies e.g. the combination of the 4Ps used to promote the product to the target market to achieve their goals. The Big Adventure Company only offers a small range of holidays and is not targeting the mass holiday market so focuses on specific types of holidays. Specialist magazines will be read by the target market and therefore provide the most effective means of communication.
3. Not correct – because special offers are unlikely to be used as the product is more important than the price.
4. Not correct – because the cost would be prohibitive for a small company and is more suitable for a mass market.

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Staffordshire fashion designer, Bob Smith, produces ONE-OFF designs of clothing for fashion shows, films, celebrities and Rock stars.

Which aspect of the design mix would be the most important for his ONE-OFF designs?

Select ONE answer:

1. Efficiency
2. Aesthetics
3. Economic manufacture
4. Function

Show the workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Business Studies KS4 & KS5 classes

The answer is 2

1. Not correct – because Bob is making one-off clothing so will not be concerned over how quickly he produces each piece of clothing.
2. Correct – Design Mix refers to the proportions in which the function, aesthetics and economic manufacture are combined in the overall design. As a designer, Bob will be more concerned with how the clothing looks (i.e. the aesthetic aspect of the design mix). Often catwalk designs sell because of what they look like rather than the function or price of the clothing.
3. Not correct – because economic manufacture is concerned with how cheaply a product can be made for and designer clothes have high price tags and one-off consumers are not mainly concerned with low prices.
4. Not correct – because designer clothes are not made for everyday wear (i.e. functional).

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Staffordshire Steel owns steel producing factories in the UK.

In 2022, the factories operated at an average of 70% of their capacity.

The most likely way for Staffordshire Steel to increase capacity utilisation is to?

Select ONE answer:

1. increase spending on expansion projects
2. attract demand from the rapidly expanding Russian market
3. increase the price of its steel
4. reduce the productivity of its workers

Show the workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Business Studies KS4 & KS5 classes

The answer is 2

1. Not correct – expansion will increase potential capacity and therefore reduce capacity utilisation.
2. Correct – capacity utilisation is the percentage of a firm’s potential output that it is currently used with the formula that Capacity utilisation = (Current output X 100) / Maximum output, and where capacity which is not being fully utilised is 30%. Additional demand from Russia will increase the use of Staffordshire Steel’s production facilities because they will have to produce more steel. This increased output will therefore move Staffordshire Steel closer to its potential capacity.
3. Not correct – if they increases its prices, demand is likely to fall, leading to a fall in capacity utilisation.
4. Not correct – reducing productivity of workers will make them less competitive as the labour cost of producing steel will increase.

This work is licensed under a Creative Commons Attribution 4.0 International License.