Practice 4.5 The seven Ps of the marketing mix with authentic IB Business Management exam questions for both SL and HL students. This question bank mirrors Paper 1, 2, 3 structure, covering key topics like systems and structures, human behavior and interaction, and sustainability and ethics. Get instant solutions, detailed explanations, and build exam confidence with questions in the style of IB examiners.
Paper
Level
Question 1
HLPaper 3
LuminaCare
Resource 1 – Company profile and financial context
LuminaCare is a Ghana-based, for-profit social enterprise that manufactures solar-powered medical devices for rural clinics and maternal health centers across Sub-Saharan Africa. Its flagship product is a solar fetal heart monitor, which allows midwives to detect complications during pregnancy without relying on grid electricity. The company raised seed capital from impact investors but has now reached an inflection point: demand has grown by 300%, and LuminaCare must decide whether to pursue a $2.5M Series A equity round or take on $1.2M in concessional debt from a development bank.
Resource 2 – CFO’s internal memo (Finance)
“Our burn rate is steady, but we’ve reached our credit limit with suppliers. We operate on 90-day payment terms with clinics, so cash flow is always tight. Series A equity gives us the scale to meet demand and build a second facility—but would dilute founder control and introduce board-level oversight. The concessional loan is low-interest and non-dilutive but comes with covenants: quarterly EBITDA targets, strict capex limits, and donor-style reporting. Any miss could trigger loan restructuring or early repayment.”
Resource 3 – HR performance dashboard (Q1–Q2 2025)
| Metric | Value |
|---|---|
| Staff turnover (last 6 months) | 22% |
| Time to fill technical roles | 49 days (↑ 24%) |
| % of roles with formal job descriptions | 58% |
| Managerial span of control | Avg. 12 direct reports |
| Avg. team engagement score | 67/100 (↓ from 78) |
| The head of HR notes that burnout and unclear career paths are leading to attrition, especially among product engineers and field deployment staff. |
Resource 4 – Marketing team proposal
“Clinics love our mission—but most have no idea who we are until we show up at trade shows. We need to invest in inbound marketing, including a multilingual website, CRM tools, and a referral rewards program for midwives. More crucially, we’re perceived as a donor-funded nonprofit, not a serious tech company. To attract hospital procurement officers and larger buyers, we must reposition the brand to emphasize product quality, not just affordability and ethics.”
Resource 5 – Email thread: CEO to CFO and Marketing Lead
Resource 6 – Feedback from key field partners
“We rely on LuminaCare’s devices, but their response time for repairs has worsened.” “Sometimes we get different pricing from different reps. There’s no standard process.” “I love the mission—but our procurement officer wants a brand that feels serious. A logo change isn’t enough.”
1.[2]
With reference to Resource 3, describe one HR issue that may be impacting LuminaCare’s ability to scale sustainably.
2.[6]
Explain one financial challenge and one marketing challenge LuminaCare may face if it accepts the concessional loan.
3.[17]
Using all the resources provided and your knowledge of business management tools and theories, recommend a possible plan of action for LuminaCare over the next five years.
Question 2
SLPaper 2
PureGlow Ltd.
PureGlow Ltd. is a skincare company that sells natural, plant-based beauty products. To support the launch of a new product line, the business used a mix of internal and external sources of finance. It relied on retained profit from previous years and also secured funding from a venture capital firm interested in ethical consumer brands.
The new product range was supported by a marketing plan focused on the premium segment. As part of the plan, PureGlow adjusted elements of its marketing mix, including packaging design and pricing. The company aims to increase market share and improve profit margins in a highly competitive industry.
Table 1 shows selected financial data for the first month after the launch.
Table 1: Financial data for PureGlow Ltd. (Month 1)
| Item | Amount ($) |
|---|---|
| Revenue | 140,000 |
| Cost of goods sold | 60,000 |
| Expenses | 50,000 |
| Net profit | ? |
1.[2]
State two sources of finance used by PureGlow Ltd.
2.[2]
Calculate the net profit for the month. Show all your working.
3.[2]
Explain one reason why profit is important for a business like PureGlow Ltd.
4.[2]
Identify one element of the marketing mix that was changed and explain its potential impact.
5.[2]
Outline one reason why creating a marketing plan is useful when launching a new product.
Question 3
SLPaper 2
Solveta Ltd.
Solveta Ltd. is a private limited company that manufactures eco-friendly packaging materials for global e-commerce businesses. The company recently launched a major marketing campaign to enter three new export markets. This campaign involved substantial investment in promotion, pricing adjustments, and changes to distribution (place) to align with regional consumer expectations.
To fund this expansion, Solveta used a mix of retained profit, a medium-term loan, and newly issued share capital. While sales revenue has increased, rising logistics and distribution costs have impacted short-term liquidity. The finance department has released Solveta’s statement of financial position and asked the marketing and finance teams to assess its implications for profitability and cash flow.
Figure 1. Solveta Ltd. Statement of financial position as at 30 June 2024
| Item | $ |
|---|---|
| Assets | |
| Non-current assets | |
| Property, plant and equipment | 600,000 |
| Less: Accumulated depreciation | (150,000) |
| Net non-current assets | 450,000 |
| Current assets | |
| Cash | 60,000 |
| Debtors | 85,000 |
| Stock | 105,000 |
| Total current assets | 250,000 |
| Total assets | 700,000 |
| Liabilities | |
| Current liabilities | |
| Bank overdraft | 12,000 |
| Trade creditors | 48,000 |
| Short-term loan | 40,000 |
| Total current liabilities | 100,000 |
| Non-current liabilities | |
| Borrowings—medium term | 180,000 |
| Total liabilities | 280,000 |
| Net assets | 420,000 |
| Equity | |
| Share capital | 300,000 |
| Retained earnings | 120,000 |
| Total equity | 420,000 |
1.[2]
Explain one reason Solveta Ltd. may have chosen to use more than one source of finance for its international marketing campaign.
2.[2]
Suggest one element of the marketing mix Solveta adjusted to support its international expansion
3.[2]
Calculate the current ratio and acid test ratio for Solveta Ltd. Show all your working.
4.[2]
Outline what these liquidity ratios suggest about Solveta’s short-term financial position.
5.[2]
Comment on how Solveta’s cost and revenue structure may affect its profitability.
Question 4
HLPaper 2
AstraPod Ltd.
AstraPod Ltd. is a growing company that designs and sells interactive educational tablets aimed at a niche market: schools and tutoring centres. The firm recently launched a marketing campaign that combined online influencer-led explainers with national education magazine ads. After steady early growth, the company now plans to scale into broader B2B contracts with public schools. It is considering adjusting its strategy from design-led innovation to more feedback-driven development.
Below is AstraPod Ltd.'s Statement of Financial Position as of 31 December 2024.
Statement of Financial Position: AstraPod Ltd. (as at 31 December 2024) (All figures in $m)
| Non-current assets | |
|---|---|
| Property, plant and equipment Accumulated depreciation ** Non-current assets ** | 1,200 (200) 1,000 |
| Current assets Cash Debtors Stock **Current assets ** I ** Total assets ** | 250 300 150 700 1,700 |
| Current liabilities Trade creditors Bank overdraft Short-term loan ** Current liabilities ** | 150 50 200 400 |
| Non-current liabilities Long-term borrowings I ** Total liabilities ** | 300 700 |
| ** Net assets ** Retained earnings | 1,000 1,000 |
| Total equity | 1,000 |
Additional information:
-
Annual credit purchases = $1,200 million
-
The factory and production machinery was purchased for $1,500 million and is expected to last 15 years.
-
AstraPod's marketing campaign generated widespread social media engagement and national coverage.
-
Product development has historically been led by the engineering team with limited market feedback.
1.[2]
Calculate:
(i) Creditor days
(ii) Depreciation expense using the straight-line method
2.[2]
Using the information provided, distinguish between a market-oriented and product-oriented approach.
3.[2]
Identify one feature of through the line promotion and explain how AstraPod's campaign reflects this.
4.[2]
Outline whether AstraPod is currently operating in a niche market or mass market
5.[2]
Explain one limitation of AstraPod Ltd.'s current depreciation method
Question 5
HLPaper 3
SparkFit Apparel Ltd.
Resource 1 - Newspaper Article
"Local Apparel Brand, SparkFit, Strives to Compete in the Global Activewear Market"
Resource 2 - Financial Statement (Income Statement 2023)
Income Statement for the Year Ending December 31, 2023
Operating Expenses:
| Item | Amount |
|---|---|
| Sales Revenue | £1,200,000 |
| Cost of Sales | £800,000 |
| Gross Profit | £400,000 |
| Expense | Amount |
|---|---|
| Marketing | £50,000 |
| Administrative Expenses | £100,000 |
| Total Operating Expenses | £150,000 |
| Item | Amount |
|---|---|
| Operating Profit | £250,000 |
| Interest | £20,000 |
| Retained Profit | £230,000 |
Despite a 20% increase in revenue compared to 2022, SparkFit faces pressure from production and marketing expenses, impacting profitability.
Resource 3 - Marketing Strategy Flowchart
Market Research - Identify target demographics interested in eco-friendly activewear.
Product Development - Focus on sustainability and quality in material sourcing.
Digital Advertising - Emphasis on social media platforms like Instagram and TikTok.
Influencer Partnerships - Engage with eco-conscious influencers for brand authenticity.
Customer Feedback Loop - Integrate customer feedback for continuous product improvement.
Resource 4 - Consumer Research Summary
A survey conducted by MarketWatch Research among 5,000 UK-based consumers aged 18-34 reveals that 73% of respondents favor brands with sustainable practices. However, only 45% are willing to pay a premium for these options. For SparkFit, this signals both opportunity and challenge, as the eco-conscious market may not guarantee increased sales without pricing strategies that resonate with young buyers.
Competitors have also increased eco-friendly offerings, emphasizing SparkFit’s need for a compelling brand identity and distinct positioning.
Resource 5 - Marketing Campaign Report
1.[2]
Using an appropriate business management theory, identify a human need that SparkFit’s products satisfy for their target consumers.
2.[6]
Outline two challenges SparkFit faces in scaling their digital marketing efforts. Support your answer with evidence from the resources.
3.[17]
Based on the resources and your business knowledge, recommend a comprehensive marketing strategy to improve SparkFit’s brand awareness and competitiveness over the next five years. Your strategy should consider product positioning, digital marketing channels, pricing, and brand partnerships.
Question 6
SLPaper 2
PureTech Ltd (PT)
PureTech Ltd (PT) is a successful manufacturer of water purification systems. An industry analyst recently highlighted PT's brand, PureFlow, as one of the company's strongest assets. Following a market-oriented approach, PT invests significantly more in market research than its competitors.
PureTech's product lines include:
- PureFlow Filters, a high-quality range of water filtration systems that account for 70% of the company's revenue and profit. However, the market for these filters is stagnant.
- PureClassic, an older line of basic filtration units that is nearing the end of its product life cycle. Production of this line will be discontinued later this year.
Both PureFlow Filters and PureClassic units are sold through specialized high-end retailers across Europe. PT follows a price leadership strategy for these products, with customers perceiving the brand as offering premium-quality systems worth the higher price.
The company is considering launching a new product line called PureGo, a range of portable water purifiers aimed at the 15–19 age group. This would target a different, but highly competitive, market segment. Focus group studies revealed that many young, budget-conscious consumers are interested in affordable portable purifiers for travel and outdoor activities. The new products would be distributed through mass-market outdoor retail chains, and customers could also order online with next-day delivery options.
1.[4]
Apply the Boston Consulting Group (BCG) matrix to PT's current product portfolio.
Question 7
HLPaper 2
Question 51 PulseFuel Ltd.
PulseFuel Ltd. is a startup producing high-performance energy drinks aimed at endurance athletes. The company prides itself on its proprietary electrolyte formula, which forms the basis of its USP. Although sales have grown rapidly, production costs remain high and most sales are made on credit. PulseFuel Ltd. is considering adjusting its pricing strategy to gain market share in the short term.
Table 1 shows PulseFuel Ltd.'s cash flow forecast for the first quarter of 2025.
Table 1: Cash flow forecast for PulseFuel Ltd. for the first three months of 2025 (All figures in $000)
| January February March | |||||
|---|---|---|---|---|---|
| Opening balance | 3 | 1 | (2) | ||
| **Cash inflows ** | |||||
| Credit sales collected | 250 | ||||
| Crowdfunding contributions 25 | |||||
| Investor seed funding | 100 | ||||
| Total cash inflows | |||||
| Cash outflows | |||||
| Packaging and ingredients 120 120 120 120 | 1 130 | ||||
| Wages | 30 | ||||
| Equipment leasing | 10 10 | 10 | |||
| Distribution and marketing 17 | 50 | ||||
| Total cash outflows | 220 | ||||
| Net cash flow | (2) | 130 | |||
| Closing balance | (2) | 128 |
Answer all the questions.
1.[2]
Using Table 1, calculate:
(i) The total net cash flow for the quarter
(ii) The closing balance at the end of March
2.[2]
Explain one reason why PulseFuel Ltd. might be profitable but still experience negative cash flow in its first two months.
3.[2]
Suggest one external source of finance, other than crowdfunding or seed investment, that would help PulseFuel Ltd. smooth early cash flow problems. Justify your answer.
4.[2]
Identify the pricing strategy PulseFuel Ltd. may be considering and explain how this could affect its short-term and long-term positioning.
5.[2]
Explain how PulseFuel Ltd.'s USP could help support a move toward premium or contribution-based pricing in future.
Question 8
SLPaper 2
Question 52 AstraPod Ltd.
AstraPod Ltd. is a growing company that designs and sells interactive educational tablets aimed at a niche market: schools and tutoring centres. The firm recently launched a marketing campaign that combined online influencer-led explainers with national education magazine ads. After steady early growth, the company now plans to scale into broader B2B contracts with public schools. It is considering adjusting its strategy from design-led innovation to more feedback-driven development.
Below is AstraPod Ltd.'s Statement of Financial Position as of 31 December 2024.
Statement of Financial Position: AstraPod Ltd. (as at 31 December 2024) (All figures in $m)
| Non-current assets | ||
|---|---|---|
| Property, plant and equipment | 1,200 | |
| Accumulated depreciation | (200) | |
| Non-current assets | 1,000 | |
| Current assets | ||
| Cash | 250 | |
| Debtors | 300 | |
| Stock | 150 | |
| Current assets | 700 | |
| Total assets | 1,700 | |
| Current liabilities | ||
| Trade creditors | 150 | |
| Bank overdraft | 50 | |
| Short-term loan | 200 | |
| Current liabilities | 400 | |
| Non-current liabilities | ||
| Long-term borrowings | 300 | |
| Total liabilities | 700 | |
| Net assets | 1,000 | |
| Retained earnings | 1,000 |
| Total equity | 1,000 |
Additional information:
-
Annual credit purchases = $1,200 million
-
The factory and production machinery was purchased for $1,500 million and is expected to last 15 years.
-
AstraPod's marketing campaign generated widespread social media engagement and national coverage.
-
Product development has historically been led by the engineering team with limited market feedback.
1.[2]
Calculate:
(i) Creditor days
(ii) Depreciation expense using the straight-line method
2.[2]
Using the information provided, distinguish between a market-oriented and product-oriented approach.
3.[2]
Identify one feature of through the line promotion and explain how AstraPod's campaign reflects this.
4.[2]
Outline whether AstraPod is currently operating in a niche market or mass market
5.[2]
Explain one limitation of AstraPod Ltd.'s current depreciation method
Question 9
HLPaper 2
Question 52 AstraPod Ltd.
AstraPod Ltd. is a growing company that designs and sells interactive educational tablets aimed at a niche market: schools and tutoring centres. The firm recently launched a marketing campaign that combined online influencer-led explainers with national education magazine ads. After steady early growth, the company now plans to scale into broader B2B contracts with public schools. It is considering adjusting its strategy from design-led innovation to more feedback-driven development.
Below is AstraPod Ltd.'s Statement of Financial Position as of 31 December 2024.
Statement of Financial Position: AstraPod Ltd. (as at 31 December 2024) (All figures in $m)
| Non-current assets | |
|---|---|
| Property, plant and equipment Accumulated depreciation ** Non-current assets ** | 1,200 (200) 1,000 |
| Current assets Cash Debtors Stock **Current assets ** I ** Total assets ** | 250 300 150 700 1,700 |
| Current liabilities Trade creditors Bank overdraft Short-term loan ** Current liabilities ** | 150 50 200 400 |
| Non-current liabilities Long-term borrowings I ** Total liabilities ** | 300 700 |
| ** Net assets ** Retained earnings | 1,000 1,000 |
| Total equity | 1,000 |
Additional information:
-
Annual credit purchases = $1,200 million
-
The factory and production machinery was purchased for $1,500 million and is expected to last 15 years.
-
AstraPod's marketing campaign generated widespread social media engagement and national coverage.
-
Product development has historically been led by the engineering team with limited market feedback.
1.[2]
Calculate:
(i) Creditor days
(ii) Depreciation expense using the straight-line method
2.[2]
Using the information provided, distinguish between a market-oriented and product-oriented approach.
3.[2]
Identify one feature of through the line promotion and explain how AstraPod's campaign reflects this.
4.[2]
Outline whether AstraPod is currently operating in a niche market or mass market
5.[2]
Explain one limitation of AstraPod Ltd.'s current depreciation method
Question 10
SLPaper 2
UrbanGlide Ltd (UG)
UrbanGlide Ltd (UG) is a private limited company that sells bicycles in a major German city. The shop is located in a prime spot near the city center. In 2018, UG sold 1,200 bicycles at a price of €2,200 each. The business operates with minimal variable costs.
UG carries a single brand of bicycle called Swift, which is known for its high-quality craftsmanship. The main competitors in the market include:
| Brand | Price (€) | Consumer Opinion |
|---|---|---|
| EcoRide | 2,800 | Medium quality |
| ChicWheels | 2,300 | Low quality |
| Sprint | 1,900 | Low quality |
Over the past five years, ChicWheels and Sprint have both gained popularity, despite some quality issues, due to their trendy designs. ChicWheels has effectively built a brand image as a stylish option, while EcoRide bikes, being electric-powered, attract environmentally-conscious consumers. Swift, ChicWheels, and Sprint bicycles all run on traditional pedal power.
Despite Swift's reputation for quality, UG's market share has been declining over the last five years, with the brand's manufacturer also losing ground across Germany. UG attributes this to the manufacturer’s lack of investment in refreshing the brand’s image. Swift bicycles tend to appeal more to an older demographic in Germany, whereas younger consumers prefer trendier products. UG uses below-the-line promotions, which have less impact on market perception compared to the manufacturer's above-the-line campaigns that focus on Swift's quality.
One strategy for Swift could be to maintain its current brand identity while exploring new geographic markets where its existing appeal may be stronger, such as in Eastern Europe or Africa, rather than attempting to reposition the brand in the existing market.
1.[4]
Explain the relationship between Swift's product life cycle and UG’s marketing mix.
2.[4]
Draw a perception map for all four brands of bicycle.