A-Level Business/Year 12 · 3.1.3 Marketing management/Markets and marketing data
Topic page · AS Paper 1 · A-level Paper 1 (and Paper 3 for strategy)

Markets and marketing data

Marketing decisions start with numbers: how big the market is, how fast it grows and how much of it you hold. This page shows you how to calculate those numbers and what they mean.

If a firm's sales go up, why might the examiner still say it is doing badly?

Spec pointAQA 3.1.3
YearYear 12 (AS and A-level)
PapersAS Paper 1 · A-level Paper 1 (and Paper 3 for strategy)
ModelNone (formulas: market growth, market share, return on marketing spend)
Typical marks2 to 15
Where this sits on your specification
AQA AS Business 7137
3.1.3
Marketing management · Year 12
AQA A-level Business 7138
3.1.3
Marketing management · Paper 1
Outgoing A-level 7132 (exams June 2027)
Partly in 7132 section 3.3
Partly in 7132 section 3.3 (Decision making to improve marketing performance). Market size, growth and share were taught there. Return on marketing spend and the C2C and goods-versus-services implications are new or lightly covered in 7138.
Short answer

Marketing data tells a business how big its market is, how fast it grows and what share it holds. Students calculate market growth, market share and return on marketing spend, read sales by region, product or store, and judge whether correlation shows cause. The type of market (B2B, B2C or C2C) and the level of competition shape which marketing works.

Year 12 or Year 13?

Year 12 (7137/7138): This is core AS content (the first-year qualification) under 3.1.3 Marketing management. Learn the three formulas exactly, and practise reading data tables. You will meet this content again in A-level Paper 1, and Paper 3 draws on it when judging strategy.

Year 13 (7132, June 2027): You studied market size, growth and share in 7132 section 3.3. Use this page to check your formulas and to practise interpreting sales data. Treat return on marketing spend and C2C markets as extras: they may help your evaluation but are not the core of your course.

Section IWhat the specification asks and the core calculationsMarket size, growth, share and return on marketing spend, with a worked example.

The specification asks you to calculate, interpret and analyse marketing data. Market size is total sales of all firms in a market, in value (£) or volume (units). A segment is one part of that market, such as students or families. Segment size is the sales in that part.

Marketing data helps a business set objectives, choose where to compete and judge whether its spending worked. A number alone says little, so always compare it with something: last year, a rival or the whole market.

Market growth (%) = change in market size / original market size x 100
Market share (%) = sales of product, brand or business / total market sales x 100
Return on marketing spend = profit from marketing activities / marketing spendSales growth uses the same pattern as market growth: change in sales divided by original sales, then x 100.

Illustrative figures: a market was worth £400m last year and £440m this year. Market growth = £40m / £400m x 100 = 10%. A firm sells £55m this year. Its market share = £55m / £440m x 100 = 12.5%.

Illustrative figures: a campaign cost £60,000 and produced £90,000 of profit. Return on marketing spend = £90,000 / £60,000 = 1.5. Each £1 spent returned £1.50 of profit. A result below 1 means the spending did not earn back its cost.

Reading sales data in more than one way

Firms split sales data by region, product or store. This shows where growth or decline is hiding. A rise in total sales can hide one store that is falling fast.

Sales volume is the number of units sold. Sales value is volume x price. Illustrative figures: 10,000 units at £5 gives £50,000. Next year 9,000 units at £6 gives £54,000. Value rose 8% but volume fell 10%, so more customers were lost even though revenue rose.

Percentages, index numbers and correlation

An index number sets a base year at 100. Index = value / base value x 100. Illustrative figures: sales of £200k (base, index 100), £230k (index 115) and £250k (index 125). The rise from 115 to 125 is 10 index points, but the percentage change is 10 / 115 x 100 = 8.7%. Do not mix up points and percentages.

Correlation describes how two sets of data move together. Positive means both rise together. Negative means one rises as the other falls. Strong means the points sit close to a line. Weak means they are scattered. Correlation does not prove that one thing caused the other.

No named model from Annex 8 (the specification's list of sophisticated concepts) is needed here. The Boston Matrix, which you meet elsewhere, does use market share and market growth, so these skills feed into it.

Strong positive correlationWeak correlationMarketing spendMarketing spendSalesSalesLine of best fit
Figure 1. Two scatter graphs of sales against marketing spend. On the left the points sit close to a rising line, so correlation is strong and positive. On the right the points are scattered, so correlation is weak.
Section IIHow types of market shape marketingB2B, B2C, C2C, goods versus services, and market conditions.

A B2B market (business to business) sells to other firms. Buyers are few, orders are large and decisions involve several people. So marketing relies on personal selling, relationships and technical detail rather than mass advertising.

A B2C market (business to consumer) sells to individuals. Buyers are many and decide quickly, often on emotion and price. So marketing uses branding, promotion and convenient distribution.

A C2C market (consumer to consumer) is where individuals sell to each other, usually through an online platform. The platform firm does not sell the goods. It markets trust, safety and ease of use, and it earns fees.

Goods are physical and can be stored. Services are intangible and used when produced, so quality varies and you cannot hold stock. Service marketing therefore stresses people, process and reputation, because customers cannot test the product first.

Market conditions

The degree of competition is how many rivals there are and how alike they are. In a crowded market, firms need clear differences or low prices. In a market with few rivals, firms may compete on non-price factors.

Competitive behaviour means how rivals act: price cuts, new products, promotion. A firm must respond or lose share. Market growth matters too. In a growing market, firms can gain sales without taking customers from rivals. In a mature or shrinking market, one firm's gain is another's loss, so competition becomes sharper.

Real data shows this. In Kantar's four weeks to 5 October 2025, UK take-home grocery sales grew 4.1%, while Lidl grew 10.8% and raised its share to 8.2%.[3] Lidl grew far faster than the market, so it took share from rivals.

Section IIIMarketing data in real businessesWhat the numbers look like when firms report them.

Firms publish sales growth, share and like-for-like figures. Like-for-like sales compare shops that traded in both periods. They remove the effect of opening new shops, so they show whether existing customers are buying more.

Greggs reported total sales of £2,151m in 2025 against £2,014m in 2024, a rise of 6.8%.[2] Like-for-like sales in company-managed shops rose only 2.4%.[2] The gap tells you that much of the growth came from new shops, not busier old ones.

Market share can move even when sales rise. In Kantar's December 2025 data, Tesco's sales were 4.3% higher and its share rose 0.2 percentage points to 28.7%.[1] Aldi's sales rose 3.9% but its share stayed at 10.1%.[1] Aldi grew, but only in line with the market, so it did not gain share.

Notice the phrase percentage points. A rise from 28.5% to 28.7% is 0.2 percentage points, not 0.2%.

Section IVEvaluating marketing data and the mistakes that lose marksWhat the numbers depend on, and the errors to avoid.

Data helps judgement, but it has limits. Evaluation is about what the figure depends on.

  • Time period: one good quarter may be a seasonal peak, so look at trends.
  • Source: a firm's own data is accurate about itself but may not cover the whole market.
  • Market definition: share looks high in a narrow market and low in a wide one.
  • Causes: strong correlation between advertising and sales may reflect a third factor, such as weather or a rival's closure.
  • Profit versus sales: a campaign can raise sales and still earn a return on marketing spend below 1.
  • Context: the right use of the data depends on the firm's objectives, market type and stage of market growth.

Mistakes that lose marks

Dividing by the new figure instead of the original when finding growth. Writing market share as a share of the firm's own sales. Calling a rise in share a rise in sales, or the reverse.

Mixing up percentage points and percentages. Treating correlation as proof of cause. Stopping at the number without saying what it means for this business, so you earn AO1 only and miss AO3 and AO4.

Key termsKeywords to use preciselyThe terms examiners expect you to define and use correctly on this topic.
Market sizeThe total sales of all firms in a market, measured in value (£) or volume (units).
Market shareA firm's sales as a percentage of total market sales.
Market growthThe percentage change in the size of a market over a period.
Return on marketing spendProfit from marketing activities divided by marketing spend, showing the profit earned for each £1 spent.
Index numberA figure that sets a base year at 100 so that later values can be compared with it.
CorrelationA measure of how closely two sets of data move together, which can be positive or negative and strong or weak.
B2B, B2C and C2CMarkets where businesses sell to businesses, businesses sell to consumers, or consumers sell to each other.
Like-for-like salesSales growth measured only in outlets that traded in both periods, so new openings are excluded.
How it is examinedSix question archetypesDefine, Explain, Analyse, Assess, Evaluate and quantitative questions, with the AOs each one rewards.

Every AQA Business question uses one of five command words, each with a fixed mark tariff, and quantitative questions sit inside the 9 and 15-mark formats. The A-level papers have no 2 or 4-mark questions. Open each format to see how this topic appears in it. All questions here are original Curriculum Circle practice questions, not board questions.

ARCHETYPE 01Define2 marks · AS onlyAO1

On this topicYou are asked for a precise meaning of a data term, such as market share or a C2C market.

What earns the marksTwo marks for AO1: one for a correct core meaning and one for a precise detail, such as the percentage or the platform role.

CC practice questionDefine the term 'market share'. [2 marks]

ARCHETYPE 02Explain4 marks · AS onlyAO1 · AO2

On this topicYou explain how a figure or market type affects a firm, in one developed point linked to the business.

What earns the marksAO1 for knowing the term and AO2 for applying it to the named firm in the case.

CC practice questionExplain one way in which selling to other businesses (B2B) rather than to consumers might change the marketing of a firm making industrial cleaning equipment. [4 marks]

ARCHETYPE 03Analyse6 marksAO1–AO3

On this topicYou build a chain of reasoning from a number to a consequence, such as how a fall in market growth affects competition.

What earns the marksAO1 for the concept, AO2 for the context and AO3 for a developed chain using because and so.

CC practice questionAnalyse how slowing market growth might affect the marketing of Kiln & Co, a chain of 30 coffee shops in northern England. [6 marks]

ARCHETYPE 04Assess9 marksAO1–AO4

On this topicYou weigh up what a data set shows, such as whether rising sales prove a marketing campaign worked.

What earns the marksAO1 to AO3 for arguments on both sides, and AO4 for a judgement that says what it depends on.

CC practice questionAssess whether a rise in sales of 12% proves that the new advertising campaign at Kiln & Co was a success. [9 marks]

ARCHETYPE 05Evaluate15 marksAO1–AO4

On this topicYou compare two courses of action using data, such as expanding in one region or raising spend in another, and recommend one.

What earns the marksAO1 to AO4, with the highest credit for a justified recommendation that uses the figures and states its limits.

CC practice questionKiln & Co can open five shops in the North East or spend £150,000 on a loyalty app. Evaluate which option it should choose. [15 marks]

ARCHETYPE 06Quantitative9 or 15 marksAO1–AO4

On this topicYou calculate growth, share or return on marketing spend from a table, then use the result to support a judgement.

What earns the marksAO1 for the correct formula and AO2 for using the figures, with AO3 and AO4 for what the result means and how reliable it is.

CC practice questionIllustrative figures: the market was worth £80m in 2025 and £92m in 2026. Kiln & Co sales were £8m in 2025 and £9.2m in 2026. Its campaign cost £400,000 and earned £500,000 of profit. Calculate market growth, market share in 2026 and return on marketing spend, then assess whether the campaign was a success. [9 marks]

Assessment objectivesWhat the examiner is testingAO1 to AO4, their weightings, and what each one means on this topic.
 WeightWhat it isWhat it means on markets and marketing data
AO132.5% AS · 24.44% A-levelKnowledge and understanding of terms, concepts, theories, methods and modelsKnow the three formulas exactly, the meanings of B2B, B2C and C2C, and the terms for correlation and index numbers.
AO227.5% AS · 24.44% A-levelApplication to the business context in the case studyUse the case figures and the firm's market type. Name the region, product or store and quote the number.
AO320% AS · 26.66% A-levelAnalysis of issues and their impact on individuals and organisationsLink a number to a cause and a consequence, such as slow market growth leading to sharper price competition and lower margins.
AO420% AS · 24.44% A-levelEvaluation of quantitative and qualitative information to make judgementsJudge what the data proves. Weigh time period, market definition and correlation against cause, then reach a conclusion.

Weightings are approximate and taken from the AQA AS 7137 and A-level 7138 specification [0].

Exam applicationA model chain of reasoningAnalysis, then evaluation, on an original practice question.

Hearth & Crumb, a fictional bakery chain, can open three shops in a fast-growing region or spend £120,000 on a loyalty app for existing customers. Evaluate which option it should choose. [15 marks]

Analysis

New shops raise sales volume because the region's market is growing, so the firm can win customers without taking them from rivals. This lifts total sales, so it also lifts market share if the firm grows faster than the market. The app targets existing customers, so it may raise sales per customer and repeat visits, and its return on marketing spend can be measured from loyalty-card data.

Evaluation

The choice depends on the figures. If the new region's market grows faster than the firm's current one and competition there is weak, shops are the stronger choice. If the app's return on marketing spend is above 1 in the pilot, it is cheaper and lower risk. Strong correlation between app use and sales does not prove the app caused the rise, because loyal customers may simply use it more. I would recommend the app first, because it can be measured quickly, then shops once growth data is confirmed.

Why this works

The answer uses data twice, to build the chain and to question what the data proves, which is how AO3 and AO4 are earned.
Real worldWhere you have already seen thisCurrent, dated examples you can use for AO2, each with its source.
01

In Kantar's December 2025 data, Tesco's sales were 4.3% higher than a year earlier and its market share rose 0.2 percentage points to 28.7%.[1] Aldi's sales rose 3.9% while its share stayed at 10.1%.[1]

02

Greggs reported total sales of £2,151m in 2025, up 6.8% from £2,014m in 2024.[2] Like-for-like sales in company-managed shops grew by 2.4%, so new shops explained much of the growth.[2]

03

In the four weeks to 5 October 2025, Kantar found UK take-home grocery sales up 4.1%, while Lidl's sales grew 10.8%.[3] Lidl's share rose 0.5 percentage points to 8.2%.[3]

Going deeperThe five branchesFive planned pieces, each built to train one assessment objective.

Everything above is the topic page. The pieces below take it further. Each one trains a particular assessment objective rather than covering the topic again, and they are added over the year.

Trains AO2
Branch 01 · The Case
Greggs: growth from new shops or busier shops?
A case study that splits Greggs' 2025 sales growth into new-shop and like-for-like effects and judges what each says about demand.
Planned · Jan 2027
Trains AO1 · AO3
Branch 02 · The Model
Market share step by step
A worked set of calculations for market growth, market share and return on marketing spend from a single data table.
Planned · Feb 2027
Trains AO1 · AO3
Branch 03 · The Misconception
Sales up, share down: the misconception
An explanation of why rising sales can still mean a firm is losing ground, and how to write it in an answer.
Planned · Mar 2027
Trains AO4
Branch 04 · The Examiner's Line
The sentence that turns a number into a judgement
A guide to the closing line that says what a figure proves, what it hides and what it depends on.
Planned · Apr 2027
Trains AO1–AO4
Branch 05 · The Question
Practice question: should the firm trust the correlation?
One 15-mark question on marketing data answered at two grades, with the differences marked up.
Planned · May 2027
ReferencesSourcesEvery figure and fact on this page, with links.
  1. [0]AQA (2025). AS and A-level Business specification 7137/7138, version 1.1 (November 2025)
  2. [1]Kantar (2025). Promotions, premium own label and no alcohol options: inside Britain's £13.8bn Christmas grocery shop
  3. [2]Greggs plc (2026). Greggs 2025 preliminary results
  4. [3]Kantar (2025). Shoppers struggle to juggle cost, sustainability and health

Figures and facts were checked against these sources on 2 November 2026. Worked numbers labelled "Illustrative figures" are invented for teaching.

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Where the depth lives

For more practice with data tables and marked answers, the CC Business revision platform and the Inner Academy's recorded lessons go further.

See the Business platformThe Inner Academy