Mark Scheme (Results)

October 2020

Pearson Edexcel International Advanced

Subsidiary
In Business (WBS11/01)
Unit 1: Marketing and People
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Autumn 2020
Publications Code WBS11_01_2010_MS
All the material in this publication is copyright
© Pearson Education Ltd 2020
General Marking Guidance

• All candidates must receive the same

treatment. Examiners must mark the first candidate in
exactly the same way as they mark the last.
• Mark schemes should be applied positively. Candidates
must be rewarded for what they have shown they can do
rather than penalised for omissions.
• Examiners should mark according to the mark scheme
not according to their perception of where the grade
boundaries may lie.
• There is no ceiling on achievement. All marks on the mark
scheme should be used appropriately.
• All the marks on the mark scheme are designed to be
awarded. Examiners should always award full marks if
deserved, i.e. if the answer matches the mark
scheme. Examiners should also be prepared to award
zero marks if the candidate’s response is not worthy of
credit according to the mark scheme.
• Where some judgement is required, mark schemes will
provide the principles by which marks will be awarded
and exemplification may be limited.
• When examiners are in doubt regarding the application
of the mark scheme to a candidate’s response, the team
leader must be consulted.
• Crossed out work should be marked UNLESS the
candidate has replaced it with an alternative response.
Question Answer Mark
Number
1 (a) Knowledge 2

Up to 2 marks for defining the term ‘market share’ eg:

• The percentage of sales in a market (1) controlled by
a company or product (1) (2)

Question Answer Mark

Number
1 (b) Knowledge 1, Application 2, Analysis 1

Quantitative skills assessed:

QS2: calculate, use and understand percentages and
percentage changes
QS7: interpret values of price and income elasticity of
demand.

Knowledge
1 mark for identifying any a suitable formula eg:
• % change in quantity demanded / % change in
price (1)

Application
Up to 2 marks for calculating the correct data:
• 450/9000 x100 = 5% (1) -20/800 x100 = -2.5% (1)

Analysis
1 mark for calculating the price elasticity of demand:
• 5%/-2.5% = -2 (1)
NB: if no working is shown award marks as
below:

• If the answer given is -2 award 4 marks (4)

Question Answer Mark
Number
1 (c) Knowledge 2, Application 2, Analysis 2

Knowledge
Up to 2 marks for defining brand, eg:
• A design, name or symbol (1) that distinguishes
a product or service from its competitors (1)

OR

For giving two methods of building a brand, eg:

• Creating a differentiated product/unique selling
point (1) Advertising its products (1)

Application
Up to 2 marks for for answers contextualised to
Samsung eg:
• Samsung was the first to create a watch that
recognised a person through their veins (1)
• When the Galaxy Note 9 phone was released
Samsung advertised the phone in major cities
around the world (1)

Analysis
Up to 2 marks for reasons / causes / consequences for
Samsung, eg:
• This has enabled Samsung to be recognised for
its product innovations leading to increasing
brand recognition (1)
• This creates awareness of new products on the
market to persuade consumers to choose
Samsung over competitors’ brands (1) (6)
Question Indicative content
Number
1 (d) Indicative content guidance
Answers must be credited by using the level descriptors (below) in line with the
general marking guidance. The indicative content below exemplifies some of
the points that candidates may make but this does not imply that any of these
must be included. Other relevant points must also be credited.

Knowledge, Application, Analysis, Evaluation – indicative content

• Secondary research, referred to as desk research, is using data
that already exists, such as gathering data from the internet
• An advantage of using secondary research is the speed at which
data can be collected from websites and journals. Samsung can
quickly collect price and product data from competitors such as
Sony. This will help Samsung to react quickly in this dynamic
market and remain competitive
• The cost of secondary research is low compared to primary
research. This will enable Samsung to minimise costs and keep
development costs to a minimum. This will help to keep prices
lower or increase profitability
• Data in Samsung’s own database can be accessed easily. Data on
previously released televisions and cell phones can be analysed
to help make decisions on new products
• However, secondary data may not be relevant to the new product
being developed. The technology industry is dynamic and
secondary data may not be useful for the design of new products
such as televisions
• Secondary data may not be reliable which may impact the success
of new products if the data is incorrect or biased
• Primary research may be more suitable to enable Samsung to
remain market orientated and customer focussed and help
maintain their market position
Level Mark Descriptor
0 No rewardable material.
Level 1 1–2 Isolated elements of knowledge and understanding – recall based.
Weak or no relevant application to business examples.
Generic assertions may be presented.
Level 2 3–5 Accurate knowledge and understanding.
Applied accurately to the business and its context.
Chains of reasoning are presented, showing cause(s) and/or effect(s)
but may be assertions or incomplete.
An attempt at an assessment is presented that is unbalanced, and
unlikely to show the significance of competing arguments.
Level 3 6–8 Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
Logical chains of reasoning, showing cause(s) and/or effect(s).
Assessment is balanced, well contextualised, using quantitative and/or
qualitative information, and shows an awareness of competing
arguments/factors.
Question Indicative content
Number
1 (e) Indicative content guidance
Answers must be credited by using the level descriptors (below) in line with the
general marking guidance. The indicative content below exemplifies some of
the points that candidates may make but this does not imply that any of these
must be included. Other relevant points must also be credited.

Knowledge, Application, Analysis, Evaluation – indicative content

• Price skimming is a pricing strategy which involves a business
setting a relatively high initial price for a product or service, then
lowering the price over time when competitors enter the market
• This strategy is often used when a new product faces little or no
competition, usually due to new technological features
• Samsung may use skimming for its new products such as Relumino
which has been developed by Samsung and is unique in the market
• The high price should allow Samsung to increase its profit margins.
Profits may be used to fund further research and development of
phones and televisions to remain competitive and maintain its
market position
• High prices may signal premium quality to some customers. The
vein recognition smartwatches may attract new customers and
help Samsung to compete with rivals such as Apple in the cell
phone market
• However, high prices may limit sales. The television and phone
markets are very competitive and if Samsung’s products are not
seen as superior by customers, demand and profit levels may be
low
• A price skimming strategy is short-term. As competitors launch
rival products this will put pressure on Samsung to lower its prices
• Distribution can also be a challenge for an innovative new product.
It may be necessary for Samsung to give retailers higher margins to
convince them to stock the higher priced product. This may reduce
profit margins and so limit the advantages of price skimming
Level Mark Descriptor
0 A completely inaccurate response.
Level 1 1–2 Isolated elements of knowledge and understanding – recall based.
Weak or no relevant application to business examples.
Generic assertions may be presented.
Level 2 3–4 Elements of knowledge and understanding, which are applied to the
business example.
Chains of reasoning are presented, but may be assertions or
incomplete.
A generic or superficial assessment is presented.
Level 3 5–7 Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
Analytical perspectives are presented, with developed chains of
reasoning, showing cause(s) and/or effect(s).
An attempt at an assessment is presented, using quantitative and/or
qualitative information, though unlikely to show the significance of
competing arguments.
Level 4 8–10 Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
A coherent and logical chain of reasoning, showing cause(s) and/or
effect(s).
Assessment is balanced, wide ranging and well contextualised, using
quantitative and/or qualitative information and shows an awareness of
competing arguments/factors, leading to a supported judgement.
Question Answer Mark
Number
2 (a) Knowledge 2

Up to 2 marks for defining the term ‘product

differentiation eg:
• A feature of a product that is different from its
competitors (1) to achieve a competitive advantage
(1) (2)

Question Answer Mark

Number
2 (b) Knowledge 1, Application 2, Analysis 1

Quantitative skills assessed:

QS3: construct and interpret a range of standard
graphical forms.

Knowledge
1 mark for correctly constructing a supply and demand
diagram with correctly labelled axes as ‘price’ and
‘quantity’ (1)

Application
Up to 2 marks for:
• Showing original equilibrium price and quantity
(1)
• Shifting the demand curve to the right (1)

Analysis
1 mark for showing the new equilibrium and its effect
on price (increasing) and quantity (increasing) (1)

(4)
Question Answer Mark
Number
2 (c) Knowledge 2, Application 2, Analysis 2

Knowledge
Up to 2 marks for defining benefits, eg:
• Financial and/or non-financial rewards given to
employees (1) to motivate them (1)

OR

For two advantages of benefits, eg:

• The employees are likely to be more motivated
at work (1) the business may be able to retain
more staff (1)

Application
Up to 2 marks for for answers contextualised to
Lehman’s, eg:
• Being paid to take a holiday on their birthday
may help employees have a better work-life
balance (1)
• Lehman’s have skilled craftsmen who have
worked for the business for many years and will
be an asset to the business (1)

Analysis
Up to 2 marks for reasons / causes / consequences for
Lehman’s, eg:
• This may make the employee happier and
therefore more productive when at work, thus
increasing the level of output at Lehman’s (1)
• This may help Lehman’s to minimise recruitment
and training costs and so increase
profitability (1) (6)
Question Indicative content
Number
2 (d) Indicative content guidance
Answers must be credited by using the level descriptors (below) in line with the
general marking guidance. The indicative content below exemplifies some of
the points that candidates may make but this does not imply that any of these
must be included. Other relevant points must also be credited.

Knowledge, Application, Analysis, Evaluation – indicative content

• The design mix emphasises three elements in the product design
process. These are function, economic manufacture and aesthetics
• Function is important to Lehman’s and its customers because they
manufacture farm and garden tools and household items. It is important
that the products function reliably otherwise the reputation of the
business will suffer
• Wooden toys made for children must be made to a high quality to
ensure they are safe and comply with legislation
• The products are non-electrical and must be reliable enough to satisfy
the needs of consumers using the tools and equipment, otherwise
consumers are likely to switch to alternative products
• However, economic manufacture is also important. The design and
manufacture of the tools and equipment by the skilled craftsmen
must allow the products to be sold profitably
• Whilst aesthetics may not be crucial for the sale of tools, it is
important for other items that Lehman sell. Toys for children and gift
items must look good in order to sell to increase demand and
encourage repeat purchase
• It is important that Lehman’s consider all elements of the design mix
when designing and manufacturing products
Level Mark Descriptor
0 No rewardable material.
Level 1 1–2 Isolated elements of knowledge and understanding – recall based.
Weak or no relevant application to business examples.
Generic assertions may be presented.
Level 2 3–5 Accurate knowledge and understanding.
Applied accurately to the business and its context.
Chains of reasoning are presented, showing cause(s) and/or effect(s)
but may be assertions or incomplete.
An attempt at an assessment is presented that is unbalanced, and
unlikely to show the significance of competing arguments.
Level 3 6–8 Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
Logical chains of reasoning, showing cause(s) and/or effect(s).
Assessment is balanced, well contextualised, using quantitative and/or
qualitative information, and shows an awareness of competing
arguments/factors.
Question Indicative content
Number
2 (e) Indicative content guidance
Answers must be credited by using the level descriptors (below) in line with the
general marking guidance. The indicative content below exemplifies some of
the points that candidates may make but this does not imply that any of these
must be included. Other relevant points must also be credited.

Knowledge, Application, Analysis, Evaluation – indicative content

• A niche market is the subset of a larger market where consumers
have specific needs and wants
• Lehman’s is likely to have less competition. It sells low-tech and
non-electrical products in a high-tech world. It has built up specialist
design skills which will increase demand for their products
• There is the possibility of charging premium prices. Lehman’s skilled
craftsmen design and make products specific to customer needs.
High prices can be charged for this personalised service leading to
higher profit levels
• It has built a USP which helps differentiate their products. This has
led to their products being used in film sets which will enhance
Lehman’s reputation and recognition
• However, the volume sold by Lehman’s may be low due to the
unique nature of the product sold. This may lead to higher unit
costs and decrease profitability
• Niche businesses can be risky as they are vulnerable to market
change. Non-electrical items may be seen as out-dated in today’s
high-tech world and sales may decline
• Premium prices charged for niche products are impacted by
changes to the economy. If there is a downfall in the economy
customers may choose cheaper substitutes. This may lead to a
decrease in demand for Lehman’s products
Level Mark Descriptor
0 No rewardable material.
Level 1 1–2 Isolated elements of knowledge and understanding – recall based.
Weak or no relevant application to business examples.
Generic assertions may be presented.
Level 2 3–4 Elements of knowledge and understanding, which are applied to the
business example.
Chains of reasoning are presented but may be assertions or
incomplete.
A generic or superficial assessment is presented.
Level 3 5–7 Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
Analytical perspectives are presented, with developed chains of
reasoning, showing cause(s) and/or effect(s).
An attempt at an assessment is presented, using quantitative and/or
qualitative information, though unlikely to show the significance of
competing arguments.
Level 4 8–10 Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
A coherent and logical chain of reasoning, showing cause(s) and/or
effect(s).
Assessment is balanced, wide ranging and well contextualised, using
quantitative and/or qualitative information, and shows an awareness
of competing arguments/factors, leading to a supported judgement.
Question Indicative content
Number
3 Indicative content guidance
Answers must be credited by using the level descriptors (below) in line with the
general marking guidance. The indicative content below exemplifies some of
the points that candidates may make but this does not imply that any of these
must be included. Other relevant points must also be credited.

Knowledge, Application, Analysis, Evaluation – indicative content

• On-the-job training is a hands-on method of teaching the skills needed for
employees to perform a job. Employees learn this new knowledge and
skills in their work environment
• Off-the-job training is when employees are given training away from their
normal job environment, often in a classroom

On-the-job training
• Training in the hotels is likely to be the less expensive option for
Shangri-La Hotels which will keep costs down and improve profitability
• Whilst employees are being trained in the hotels, service to the clients
can be maintained. If staff go to the training centres additional staff will
need to be employed at the hotels, adding to costs
• Shangri-La Hotels employ some of the most talented professionals in the
hospitality industry and therefore the on-the-job training is likely to be of
high quality. Many of the staff have been at the company for several
years and will have invaluable experience that can be passed on to new
employees

Off-the job-training
• However, off-the-job training might lead to more efficient employees if
trained by professionals. If the employees responsible for on-the-job
training are inefficient and poor at their jobs, then their bad habits will
be passed onto new employees. This may negatively impact customer
service
• Whilst being trained away from the hotel, employees can focus on their
learning. This avoids disruption to the training and prevents customers
receiving poor service from untrained staff
• Off-the-job training may be preferred because the training at the
academy is likely to be done by experts in the hospitality industry.
Shangri-La Hotels may need specialist courses to cover new hotel services
and skills to keep up with changing trends in the hotel industry
• The Shangri-La Hotels offer their off-the-job training to non-employees
who pay a fee for training. This will help to generate funds to contribute
to the running of the training centre and may also help them to select
and recruit new employees
Level Mark Descriptor
0 No rewardable material.
Level 1 1–4 Isolated elements of knowledge and understanding. Weak or no
relevant application of business examples.
An argument may be attempted, but will be generic and fail to connect
cause(s) and/or consequence(s).
Level 2 5–8 Elements of knowledge and understanding, which are applied to the
business example.
Arguments and chains of reasoning are presented but connections
between cause(s) and/or consequence(s)/effect(s) are incomplete.
Attempts to address the question.
A comparison or judgement may be attempted but it will not
successfully show an awareness of the key features of business
behaviour or business situation.
Level 3 9–14 Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
Uses developed chains of reasoning, so that cause(s) and/or
consequences are complete, showing an understanding of the
question. Arguments are well developed.
Quantitative and/or qualitative information is introduced in an attempt
to support judgements, a partial awareness of the validity and/or
significance of competing arguments and may lead to a conclusion.
Level 4 15–20 Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
Uses well-developed and logical, coherent chains of reasoning,
showing a range of causes and/or effect(s). Arguments are fully
developed.
Quantitative and/or qualitative information is/are used well to support
judgements. A full awareness of the validity and significance of
competing arguments/factors, leading to balanced comparisons,
judgements and an effective conclusion that proposes a solution
and/or recommendation(s).
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