Theme 1: Marketing & People This theme enables students to understand how businesses identify opportunities and to explore how businesses focus on developing a competitive advantage through interacting with customers. Students develop an understanding of how businesses need to adapt their marketing to operate in a dynamic business environment. This theme also considers people, exploring how businesses recruit, train, organise and motivate employees, as well as the role of enterprising individuals and leaders. 1.1 Meeting customer needs Subject content 1.1.1 The market What students need to learn: a) Mass markets and niche markets: characteristics market size and market share brands b) Dynamic markets: online retailing how markets change innovation and market growth adapting to change c) How competition affects the market d) The difference between risk and uncertainty

Some markets operate at snail’s pace Some markets operate at snail’s pace. Heinz launched Baked Beans in 1901 and in 2014 the Heinz factory in Wigan was still producing one billion cans a year. Others are dynamic, implying short ____________________ life ___________________ and highly competitive ________________________. In the mobile phone sector, technological change, _________________________ and competition are the key factors. In bookselling and music distribution, online retailing has been the driving influence (though that could also be categorized as __________________________ change). Choose from these words: cycles, technological, product, innovation, markets.

Dynamic Markets – competitive and fast moving markets Markets are moving at a fast pace and businesses need to be ready to adapt…

Online retailing 2003: £8.3million  2014: £975million

How markets change

Innovation & Market growth

Adapting to change

Discuss how the entrance of Amazon has had on it’s competitors such as WH Smith?

Competition in the market… Good or bad thing? For who?

Homework – Knowledge check State 3 advantages of giving products brand names. (3) State two advantages to customers of online retailing (2) What is meant by a dynamic market? (2) How might the nature of a market change over time? (2) State 3 reasons why a market might grow? (3) Describe two ways a business might adapt to changes in markets. (6)