A2 Unit 8 Business Planning – Lesson 5

Who reads this magazine? Write down 3 key facts about the typical reader of this magazine and what evidence on the cover told you this? Starter exercise

 Identify different types of market segment  Identify market segments for business ideas  Understand importance of market segment for business idea. LESSON OBJECTIVES

 This is working towards AO1 which is marked out of 16:  Mark Band one (1-4 marks): A description/list of the Business Proposal  Mark Band Two (5-8 marks): A Partial explanation of the business proposal  Mark Band Three (9-12 marks): An explanation of business proposal  Mark Band Four (13-16 marks) A thorough explanation of the business proposal. SUCCESS CRITERIA

MARKET SEGMENTATION MIND MAP Market Segments DemographicGeographic Psychographic/Lifestyle Behavioural Age Urban v Rural Opinions Ethnic Group Country Family Size Personality Inner city v suburb ACORN Classification Socio Economic Group Interests/Activities Religion Rate of Usage Lifestyle Loyalty Income Time of Consumption Sex Benefits sought Stage in Life Cycle UK region Study the mind map below. Place the different methods of segmenting markets under the correct heading

Demographic  Age  Sex  Ethnic Group  Family Size  Stage of Life Cycle  Religion  Income  Socio- Economic Groups Geographic  Country  UK region  Urban v Rural  Inner City v Suburbs Psychographic  Personality  Interests/Activities  Opinions  Lifestyle Behavioural  Rate of Usage  Benefits Sought  Time of Consumption  Loyalty Market Segments

MARKET SEGMENTATION  Describe the type of customers for your product. You should try to segment in 2 ways: 1.Find out as much about the place ( geographical segmentation) that your business is in. There are a variety of different sources of information by googling 2011 Census  1%20-%20First%20Release%20Summary.pdf 1%20-%20First%20Release%20Summary.pdf  the-humber/harrogate the-humber/harrogate  tasetList.do?a=7&b= &c=HG1+4DP&d=13&g= &i=1x1003x1032&m=0&r=0&s= &enc=1& domainId=15 tasetList.do?a=7&b= &c=HG1+4DP&d=13&g= &i=1x1003x1032&m=0&r=0&s= &enc=1& domainId=15

MARKET SEGMENTATION Describe the type of customers for your product. You should try to segment in 2 ways: 2. Find out as much about the typical customer for your product/service by  Gender  Age  Geography  Social Class  Why They Buy?  How often they Buy?  Lifestyles You may be able to conduct secondary research specific to your product/service or search more generally by the industry e.g who drinks soft drinks? humber/harrogate

 Here is the start of a definition of market segment. Copy the start of the definition onto your whiteboard/ read out the definition  A market segment is a group of customers……..  Student number 1 add something extra to the definition.  Now pass your board onto student 2 next to you, who reads the definition and adds something extra to it or it can be done orally.  Repeat. WHAT HAPPENED NEXT - MARKET SEGMENTS PLENARY