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?

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

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.

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

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

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

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

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

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

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