Refer to the As Fair As case study (SL/HL paper 1 Nov 2018).

Describe two elements of a marketing plan (line 21) for AFA.

Refer to the As Fair As case study (SL/HL paper 1 Nov 2018).

With reference to AFA, explain why applying appropriate principles and ethics of accounting practice is important.

PLEASE NOTE: This content is not included in the syllabus for 2024 exams onward. Related parts of this multi-part question may be used. 

The main elements of a marketing plan are:

• details of the marketing objectives of the business including target market
• sales forecasts
• marketing budget including financial projections
• marketing strategies (which may include 4Ps at SL, 7Ps at HL)
• detailed action plan

Context:

• Sam has poor understanding of finance, so the budget may not have been done well.
• He may have had problems with forecasts as this is a new business.
• One objective was to only sell coffee.
• Sam had CSR as one of the objectives, which, presumably applied to marketing.

The two elements can both come from the 4Ps provided they are clearly distinguished.

Do not allow elements from a business plan, eg vision statement, unless they are clearly linked to marketing.

Mark as 2 + 2.

Award [1] for each correct element identified and [1] for a description of how that feature relates to AFA. Award a maximum of [2] per element.

PLEASE NOTE: Principles and ethics of accounting is not included in the syllabus for 2024 exams onward. Related parts of this multi-part question may be used.

Refer to Paper 1 markbands for May 2016 forward, available under the "Your tests" tab > supplemental materials.

Accounting principles and ethics include:

• integrity – being straightforward, honest and truthful
• objectivity – avoiding bias, conflict of interest
• professionalism – accounts produced to relevant professional standards
• confidentiality
• accounts need to comply with legal obligations and be compliant with standards set by professional bodies.

Context: in the context of AFA the business is run on ethical and fair trade concepts. Failing in any of the accounting principles and ethics could damage the reputation of the business and AFA could lose sales and customers. Investors will also need reassurance in relation to the ethics of the business. Other stakeholders, such as pressure groups concerned with fair trade, may need to be satisfied.

Discussion of ethics in a wider sense is allowed but [6] can only be achieved if there is some reference to accounting principles.
If ethics are general, and no mention of accounting principles/ethics then maximum award is [3].
If accounting principles only with no reference to ethics/accounting ethics then maximum award is [3].

Be aware that context is difficult, so the same context can be used for the various different principles/ethics.

Accept any other relevant explanation.

Marks should be allocated according to the paper 1 markbands for May 2016 forward section A.

Award a maximum of [3] for a theoretical answer.

Award a maximum of [5] if the explanation is mainly descriptive, but in context.