Business 2025 · May/June · Paper 42

A strong answer should evaluate the usefulness of the strategic approaches used by QA between 2021 and 2024, including SWOT analysis, Ansoff matrix, decision tree analysis, and the use of market research. It should consider both benefits and limitations of each approach in the context of QA's changing situation. Key points likely to be credited: - SWOT analysis in 2021 helped QA identify internal strengths and weaknesses and external opportunities and threats. - It was useful because it highlighted high sales, market share, growth in the smart speaker market, and concerns about data security. - However, SWOT is subjective, can oversimplify issues, and does not prioritise actions or quantify outcomes. - The Ansoff matrix helped the Marketing Director recommend product development, which was appropriate because QA already had an existing market and wanted to launch a new product. - It was useful because it provided a clear strategic direction and matched QA's strengths in technology. - However, Ansoff is a broad framework and does not assess risk, cost, or implementation in detail. - The decision tree was useful in helping directors compare launching QA2 early in 2024 versus waiting until 2025. - It allowed probabilities and expected outcomes to be considered, supporting a more quantitative decision. - However, the decision tree depended on estimates that may have been inaccurate, and it may not have fully reflected non-financial factors such as reputation or quality issues. - The market research in 2024 was useful because it provided evidence of problems with QA2, including faults, high price, lack of supply, and poor customer recommendation. - This helped QA identify weaknesses in the launch and the need to relaunch the product. - However, the research was after launch, so it was reactive rather than preventive, and some findings may have been affected by customer bias or limited sample reliability. - Overall judgement should weigh that the approaches were useful because they supported structured decision-making and reduced uncertainty, but their usefulness was limited by the quality of data, subjectivity, and the fact that some tools were too general for complex strategic decisions. A high-level response should reach a reasoned conclusion about which approach was most useful and why, supported by application to QA.

A strong answer should advise QA on a coordinated marketing strategy for QA2, using the marketing mix and linking decisions together to address the product's current problems and support future success. Key points likely to be credited: - QA should relaunch QA2 with a revised marketing strategy rather than simply repeating the original launch. - Product: improve product quality, reduce faults, ensure the device meets customer expectations, and consider additional testing before relaunch. - Product: address concerns about poor quality and misleading promotional claims by ensuring the product performs as advertised. - Price: reduce the price or use a more competitive pricing strategy because 72% of customers thought the price was too high. - Price: QA may need to accept lower short-term margins to rebuild demand and improve market share. - Place: improve distribution and supply so that customers can actually buy the product; QA should work with manufacturers to increase output and avoid stock shortages. - Place: ensure inventory availability is communicated accurately to retailers and customers. - Promotion: use honest, clear, and realistic promotional messages to rebuild trust after complaints and a public apology. - Promotion: focus on product benefits, reliability, and improved features rather than exaggerated claims. - Promotion: use integrated communication across channels so that the message is consistent. - Coordination: all elements of the marketing mix should support each other; for example, a lower price should match improved quality and reliable supply. - QA should also consider rebuilding brand image and customer confidence through after-sales support, warranties, and customer service. - The strategy should be targeted at the right market segment, likely early adopters and technology-focused consumers, but only if QA can prove the product is reliable. - A good conclusion should advise that the most important priorities are product improvement and supply reliability, because promotion alone will not solve the current problems. - The answer should make a justified recommendation about the best combination of price, product, place, and promotion for QA2. A high-level response should evaluate alternatives and conclude with a clear, justified marketing strategy for QA2's future success.