Key Role of Marketing in Coffee Shop Success

‘Marketing is the most important factor that will affect the success of a new coffee shop.’ Evaluate this view. AO1 Knowledge and understanding · Marketing is the management task that links a business to its customers by Expalining and meeting the needs of customers through a range of activities such as the 4Ps – product, price, promotion, place. · Business success is considered to be determined by a number of factors such as quality of business management, degree of effective financial management, effectiveness of marketing and sales, employee experience and system and process effectiveness. · New business characteristics may include – small number of owners and employees, small footfall, limited product range, small investment required, potential high profit margin, vulnerable to all the challenges of a small business. · Developed knowledge why marketing is a factor affecting business success – marketing identifies and meets the needs of customers operating through the 4Ps and sets appropriate prices, determines effective advertising and sales targets – other factors include quality of management, adequacy of finance. (2 marks L2) · Limited knowledge why marketing is a factor affecting business success – marketing is responsible for the efficiency of the sales campaign. (1 mark L1) AO2 Application · New coffee shops pop up regularly – could be run from a van or small stall selling drinks. · New coffee shops could offer a range of different types of coffee e.g. latte, flavoured coffee. · New coffee shops may offer other products e.g. other beverages, cakes, small savoury snacks. · Developed application – how marketing might be applied to the development of a new coffee shop – social media campaign informing customers of the different variety of coffee beans they use in their drinks e.g. ethical sourcing. (2 marks L2) · Limited application – how marketing might be applied to the development of a new coffee shop – advertising the types of beverages and food sold in the shop. (1 mark L1) 9609/12 Cambridge International AS & A Level – Mark Scheme PUBLISHED May/June 2023 © UCLES 2023 Page 31 of 32 Question Answer Marks 6(b) AO3 Analysis · Marketing activities – can support and underpin the success of small businesses – carry out effective sales and promotion strategies · Marketing activities – can create awareness of a product/service – establish and strengthen customer relationships · Marketing activities – cost money and early activity for a new small business may require substantial expenditure · Cost management needs to be effective – new small businesses may have little cash after set💥up costs – working capital needs to be carefully managed · Entrepreneurial and management skills – success may require more than enthusiasm – regular review of the business model may be required · Product quality – continuous attention to customer perceptions of quality needed – variations and product additions may be needed · Customer satisfaction – the product/service offer will succeed if a USP (for the product or attractiveness of the premises) is established. · Developed analysis – marketing ensures that sales campaigns are effective and promotion strategies are implemented for a business – this ensures that a market presence is established as customers are made aware of the offer, leading to healthy initial sales and revenue. (2 marks L2) · Limited analysis – the use of the 4Ps (especially promotion) stimulates the sales of a new business. (1 mark L2) AO4 Evaluation · Eval 6 – developed judgement/conclusion is made in context (new coffee shop) (6 marks ) · Eval 5 – developed evaluative comments given in context (new coffee shop) (5 marks ) · Eval 4 – developed judgement/conclusion is made, not in the context of a new coffee shop. (4 marks ) · Eval 3 – developed evaluative comments made, not in the context of a new coffee shop. (3 marks ) · Eval 2 – judgement/conclusion is made but with little supporting evidence, again not in context. (2 marks ) · Eval 1 – an attempt is made to balance arguments. (1 marks ) · Eval 0 – no evaluation is attempted (0 marks) · A judgement/conclusion is made as to whether marketing is the most important factor affecting the success of a new coffee shop. · Such judgements/conclusions may be made at any point in the essay, not just in a concluding section. · Judgement is made that marketing activities can be important to the success of a small coffee shop. 9609/12 Cambridge International AS & A Level – Mark Scheme PUBLISHED May/June 2023 © UCLES 2023 Page 32 of 32 Question Answer Marks 6(b) · The question is however asked do some businesses have specific limitations in terms of how much is available to spend on marketing and might that apply to a small coffee shop? · The question is also asked `are some marketing activities more important than others’? – is market research for new businesses more important than advertising and promotion? · Could other factors be as important or more important than marketing – e.g. liquidity/cash control, effective business planning, degree of competition, the volatility of the economy. · Is the quality of the beverages and associated food and the ambience of the shop, more important than marketing? · Would an appropriate level of working capital be more important than marketing and would finance limit the extent and kind of marketing employed?