Imran Joe Nasir TEACHERS DESK Nice Jack Door IT03 Board Maruf Radu Ria Rabbab 12/11/2018 Ria Shuyeb Maruf Brijesh Harry Charlotte Lidia Mason Bonnie Aditya Rahat Asil Yugesh Nasir Bareera Anthony Trish UPDATE THIS Yassir Balween Jahangir Shamar TEACHERS DESK Nice Jack Door Second warning seat IT03 Board

1.1.2 Understanding customer needs 12/11/2018 GCSE Business 1.1.2 Understanding customer needs

Start of lesson drills Planner on the desk Pen/stationary available 12/11/2018 Start of lesson drills Planner on the desk Pen/stationary available Exercise book open on the desk Date copied from the board Title copied from the board DIRT time Ready to learn Reminder

12/11/2018 Expectations Be in the right place, at the right time doing the right thing: Be respectful of others and allow them to learn Complete all homework tasks set and come to me if you have any problems completing it Respect all school equipment Bring the correct equipment (pens, books etc.) to our class Act as respectable young adults like business individuals Reminder

Silent DIRT time Dedicated Improvement and Reflection Time 12/11/2018 Silent DIRT time Dedicated Improvement and Reflection Time Ensure the market research A5 worksheet has been completed Revisit the Grace and Peter market research questions Finish questions 1-3 Reattempt any questions I have asked you to Make any presentation changes that I have asked E.g. underline dates and titles, use rulers to draw tables, make definitions more obvious. When you have done that, there will be a challenge activity to do. Well done for getting this far!

Put a new title in your books 12/11/2018 Customer demand Put a new title in your books

Demand learning objectives 12/11/2018 Demand learning objectives By end of the lesson, you should be able to: Describe demand Describe effective demand Calculate revenue from different demands Explain what a demand curve is showing

12/11/2018 Demand The amount that an individual or individuals are willing to buy at any given price. For demand to be meaningful, it has to be backed up by the ability to pay. This is called effective demand. For virtually all products demand increases as price falls and vice versa

What does customer demand depend on? 12/11/2018 What does customer demand depend on? Price of your products as well as competitors Fashion and taste How easy it is to find and buy – is it accessible? How well it is promoted – is it advertised and promoted well? Seasonality The weather

What is the overall aim of the business? 12/11/2018 What is the overall aim of the business? The overall aim of the business is to make money by: Meeting demand through getting them to try your product and continue to use your product/service. This is called repeat purchase. How can businesses achieve repeat business?

Demand for Mars Bars in a school: 12/11/2018 Demand for Mars Bars in a school: Price Quantity Demanded £0.20 400 £0.25 350 £0.30 300 £0.35 250 £0.40 200 £0.45 150 £0.50 100

This is what it looks like on a graph 12/11/2018 This is what it looks like on a graph

What does the graph show? 12/11/2018 What does the graph show? The demand curve is downward sloping because as the price of Mars bars increase, less people are prepared to pay the higher prices, so demand decreases. This company should therefore think carefully what price to sell their chocolate bars.

What is Supply? Definition The amount of goods that producers are willing to supply / sell at a given price SUPPLY AND PRICE In virtually all cases supply increases as price increases and vice versa. This is because producers are aiming to make profit. * If the good is sold at a high price they will make more profit. * If it is sold at a low price they will either make very little profit or even a loss

Supply and Mars bars Price Quantity Supplied £0.20 100 £0.25 150 £0.30 200 £0.35 250 £0.40 300 £0.45 350 £0.50 400

This is what the Supply Graph looks like

What does the graph show us? The Supply curve is upward sloping (a positive correlation). This means that businesses want to supply their products at the highest possible product. This is so that it earns them the most amount of profit. BUT! Thinking back to our Demand curve customers want to pay the lowest price, so there has to be….

The Equilibrium Price equilibrium is found where supply and demand are equal. This is the point where both sellers and buyers are happy with the price and quantity.

How much are you prepared to pay for a Mars Bar?