A company sets its primary marketing objective for 2025 to be the dominant market leader in the product it distributes - HSC - SSCE Business Studies - Question 20 - 2024 - Paper 1
Question 20
A company sets its primary marketing objective for 2025 to be the dominant market leader in the product it distributes. Its sales results are shown in the table.
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Worked Solution & Example Answer:A company sets its primary marketing objective for 2025 to be the dominant market leader in the product it distributes - HSC - SSCE Business Studies - Question 20 - 2024 - Paper 1
Step 1
Analyze sales and market share data
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Answer
In 2023, the company had a sales figure of 10millionwithamarketshareof2015 million, but the market share dropped to 15%. This indicates that while sales increased, the overall market is growing faster than the company’s sales, leading to a decrease in market share.
Step 2
Identify the best option to achieve market leadership
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Answer
To achieve the objective of becoming the dominant market leader by 2025, the marketing manager needs to focus on controlling the marketing mix effectively as the market share has declined despite increased sales. This suggests a need for strategic adjustments rather than merely increasing the advertising budget.
Step 3
Recommendation
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Answer
The best course of action would be to choose option D: Control the marketing mix as the market share has declined.
