1. Starter Activity List all the places you can purchase An ipod A TV
A car
What are the similarities and differences in these places that you have identified?

2. Lesson Objectives To understand what makes a market
To be able to consider the importance of a USP and Competitive Advantage

3. What is a Market?
A market is a system that allows buyers and sellers to come together and agree to trade a product for an agreed price.
It may not be in a physical place – indeed e- commerce is making this less important.

4. Market/Product Orientation
If a firm has conducted extensive Market Research to identify a potential customers needs – then provides a product that meets this need – we say they are Market Driven – or have Market Orientation
If a firm has spent time developing a product that it will convince customers to purchase – it is Product Orientated
Dyson/ipod/ps3/organic food range – market or product orientation – discuss in pairs

5. USP
Firms will seek a USP to give them a Competitive Advantage over its rivals
Unique Selling Point
What do you think is the USP of
Asda
Budweiser beers

6. USP = Low Prices
Budwiser - “King of beers” - USP = Taste

7. Market Differentiation
Makes the business/product stand out from its rivals
Branding
Competitive pricing – gained through efficiency/size
Quality – high price
Think of two examples of each

8. Niche Markets Some products are purchased by almost everyone
Cadburys dairy milk
Pepsi
Some products are aimed at a very specific part of the market, at customers with distinct characteristics e.g.
Gender
Age
Income
occupation

9. Homework & DST Task Essential preparation for next lesson
Ask 5 people to complete the following
Map your results on a graph
How many cans of Pepsi would you purchase a week if it cost
10 pence per can
50 pence per can
£1 per can
£2 per can

10. Plenary In Groups Think of an idea for a new magazine List
Its name
Its USP
Its place in the market – is it a niche
Prepare a presentation – dragons den style