I received an email from Lara – AS Level student – about whether or not CIE Business Studies students need to know the details of UK-oriented information. Here’s the question and my answer below:
Hey Luke, quick question.
On page 257 of the prescribed text book a list of socio-economic groups in the UK are given. Do we need to know those? Will we be asked UK orientated questions in the exams in May?
No, you don’t need to know the specifics of the UK socio-economic groups; these are provided as an example of how one might use demographics/socio-economic groups in market segmentation. Socio relates to social class and economic relates to income category.
According to your syllabus: “The emphasis should be on the application of concepts and issues to the local context (i.e. the candidate’s
own country), where appropriate” (page 7). For example, if a question about market segmentation asked for you to consider your own country in your answer, you could mention previously disadvantaged communities and those more economically advantaged in suburban areas of South Africa. Hence we may find that a supplier of soaps and detergents is likely to market a more affordable range of cleaning products to the previously disadvantaged community, whilst a wider range – including higher quality, luxurious goods – may be targeted and supplied to the ‘wealthier’ market segment.
Both the economically disadvantaged community and the wealthier customers are market segments – they are part of the larger market for soaps and detergents, and an even larger market for household retail products.
Hope this helps! Let me know if you need any further clarity.