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Business Studies IGCSEPDF 132

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PDF 132

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0450/12 Cambridge I|GCSE — Mark Scheme May/June 2025 PUBLISHED Question Answer Marks Guidance 1(d) Explain two benefits to NFC of using market 6 | To use words from the stem as application, the reference segmentation. Award 1 mark for identification of each relevant benefit (max 2). Award 1 mark for each relevant reference to this business (max 2). Award 1 mark for each relevant explanation (max 2). Points might include: * Can design/produce goods to meet specific needs of consumers/know what to produce [k] so that costs/materials are not wasted (producing wrong product) [an] especially as plan to develop new products [app] « Help target advertising/marketing strategies [k] to ensure maximum number of people see the products [an] which is an aim of promotion [app] « — Identify gaps in the market/new opportunities [k] for its shoes [app] which can help spread risk [an] * May make marketing expenditure more effective [k] so do not waste money/resources [an] Other appropriate responses should be credited. must be appropriate (i.e. make sense) in relation to the point being made. The following words are likely to be appropriate for this « Shoes *¢ «Quality assurance e Promotion (of products) e Develop new products Other appropriate examples can be credited. Do not award answers about the benefits of market research. 0450/12 Cambridge IGCSE — Mark Scheme May/June 2025 PUBLISHED Question Answer Marks Guidance 1(e) Do you think the benefits of developing new products 6 fora business are greater than the limitations? Justify your answer. Award up to 2 marks for identification of relevant points. Award up to 2 marks for relevant development of points. Award up to 2 marks for a justified decision as to whether the benefits of developing new products for a business are greater than the limitations. Points might include: Benefits: «Increase demand/customer (base)/sales [k] which may increase revenue/market share [an] «Can help spread risk/diversification [k] if sales fall for one product, this be offset by sales of another product [an] « Provide competitive advantage/unique selling point (USP) [k] which could increase customer/brand loyalty [an] e Enter new markets [k] « Improve brand recognition/reputation [k] Limitations: « Must produce new/trial products/more raw materials [k] increases costs [an] « Need to carry out market research [k] increases cash outflows [an] « Need to launch/promote/market the new product [k] « Often requires large capital expenditure/cost of new machinery [k] « May need to recruit/train additional employees/specialists [k] Other appropriate responses should be credited. This is a general question so there are no marks for application. To access evaluation must discuss at least one benefit and one limitation. For evaluation to be awarded justification will usually follow on from relevant analysis of points.