Learn this topic properly. Interactive diagrams, worked examples, check questions and exam-style practice with mark schemes. Open “Unit 4 · Marketing” in FortyFive →
The full notes, worked example and check questions for this subtopic are in the app.
Exam tip: When you suggest a marketing mix, justify each P by linking it to the target market in the case.
4.3Sales forecasting HL
Key terms
Sales forecast
A prediction of future sales based on past data and judgment.
Moving average
An average over a rolling period (e.g. 4 quarters) that smooths fluctuations to show the trend.
Seasonal variation
Actual value − trend: the regular effect of each quarter or season.
Cyclical / random variation
Changes caused by the business cycle / unpredictable events.
Method: (1) 4-quarter moving totals; (2) divide by 4 → moving averages; (3) average two adjacent values to get a centred trend aligned with a quarter; (4) seasonal variation = actual − trend; (5) average seasonal variation for each quarter; (6) forecast = extended trend + average seasonal variation.
The full notes, worked example, interactive diagram and check questions for this subtopic are in the app.
Exam tip: Always comment on reliability: the more stable the past pattern and the shorter the forecast, the more reliable it is.
4.4Market research
Key terms
Primary research
New data collected first-hand: surveys, interviews, focus groups, observation.
Secondary research
Existing data: market analyses, academic journals, government publications, media articles.
Qualitative data
Opinions, reasons and feelings: “why”.
Quantitative data
Numerical data: “how many”.
Sampling
Choosing part of the population to research.
Primary: specific and up to date, but expensive and slow. Secondary: cheap and quick, but may be outdated or not specific.
The full notes, worked example and check questions for this subtopic are in the app.
Exam tip: Recommend methods that fit the firm's budget and question: a small start-up can't afford national surveys.
4.5The seven Ps of the marketing mix
Key terms
Product life cycle
Development, launch, growth, maturity, decline.
Extension strategies
Ways to extend maturity: new features, new markets, rebranding, new uses.
Boston (BCG) matrix
Classifies products by market growth and market share: stars, cash cows, question marks, dogs.
Branding
Creating a name, image and identity to make a product recognisable.
Above / below the line
Paid mass-media advertising / other promotion (sales promotions, sponsorship, direct marketing).
Product: product life cycle and extension strategies; Boston matrix; branding (awareness, development, loyalty, value); packaging.
The full notes, worked example, interactive diagram and check questions for this subtopic are in the app.
Exam tip: Explain the 7 Ps as a coherent mix for the case: one P that contradicts the others (e.g. a luxury product in a discount store) is worth discussing.
Adapting a global product to local tastes and culture.
Opportunities: new customers, economies of scale, spreading risk, extending the product life cycle.
The full notes, worked example and check questions for this subtopic are in the app.
Exam tip: Mention exchange rates and culture with specific examples from the case: they are the most common threats in international marketing answers.