What do you remember from last lesson?

Do Now!

Make a list of any products/ services that you think are popular amongst 16-19 year olds.

Do Now!

Understanding Markets

By the end of this lesson you should be able to:

1. Understand the key features of physical and virtual markets.

2. Identify the main factors that can affect demand and identify examples.

3. To understand market segmentation including how and why used and the benefits and limitations.

Learning Objectives

Nature and Types of Markets

Local Market National

Market

Customers are only a short distance

away

Geographically dispersed market -

customers spread over a large area.

VS

LO1) Understand the key features of physical and virtual markets.

Nature and Types of Markets

No physical presence but

exists virtually.

Many businesses have moved from

‘brick to click’

Virtual Markets

Can you give some examples of virtual

businesses?

What are your views about virtual business?

Are there any advantages or disadvantages to this

method?LO1) Understand the key features of physical and virtual markets.

List….

The factors that could affect demand for products or services.

What are the factors affecting demand?

LO2) Identify the main factors that can affect demand and identify examples.

Market Segments

LO3) To understand market segmentation including how and why used and the benefits and limitations.

What is market segmentation?

Where the market is broken down into smaller sections with similar characteristics.

What is the purpose of

market segmentatio

n?

Market Segments

LO3) To understand market segmentation including how and why used and the benefits and limitations.

Watch the video about JuJu.

What are some of the issues with their targeting?

What segment should they be aiming for?

Market segments in action

Market Segments

LO3) To understand market segmentation including how and why used and the benefits and limitations.

Match the product to the correct segment.

What are the benefits and limitations of market segments?

LO3) To understand market segmentation including how and why used and the benefits and limitations.

BENEFITS Better understanding of

needs of market. Able to meet the needs. Less expensive to develop

targeted product. Less wasteful of resources. Differentiate – charge

higher price.

LIMITATIONS Depends on

entrepreneurs knowledge of market.

Segmentation is an approximation of behaviour.

May not be suitable for businesses with limited markets.

Read the case study and answer question 1, 2 and 3.

Segmentation in Cinema and TV

Write down….

A question based on todays lesson and test your peers.

Finally…..

You should now be able to:

1. Understand the key features of physical and virtual markets.

2. Identify the main factors that can affect demand and identify examples.

3. To understand market segmentation including how and why used and the benefits and limitations.

Re-cap Learning Objectives