1. 1.1.2 Understanding customer needs
28/11/2018
GCSE Business
1.1.2 Understanding customer needs

2. Start of lesson drills Planner on the desk Pen/stationary available
28/11/2018
Start of lesson drills
Planner on the desk
Pen/stationary available
Exercise book open on the desk
Date copied from the board
No new title today
Ready to learn
Reminder

3. 28/11/2018
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

4. Demand learning objectives
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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

5. Demand recap What is Demand? What is Effective Demand
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Demand recap
What is Demand?
What is Effective Demand
Name 5 things demand depends on
What is repeat purchase?
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.

6. Homework Don’t forget that I gave you a demand worksheet on Wednesday
28/11/2018
Homework
Don’t forget that I gave you a demand worksheet on Wednesday
What we will do today will help you answer the worksheet
This is due on Monday 21st September P2

7. Starter https://www.youtube.com/watch?v=RP0j3Lnlazs
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Starter
From 18 Seconds to 4 min 10 Seconds

8. Demand for Mars Bars in a school:
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Demand for Mars Bars in a school:
Price
Quantity Demanded
Revenue
£0.20
400
£80
£0.25
350
£87.50
£0.30
300
£90
£0.35
250
£0.40
200
£0.45
150
£67.50
£0.50
100
£50

9. This is what it looks like on a graph
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This is what it looks like on a graph

10. What does the graph show?
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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.

11. What is Supply?
Supply - 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

12. 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

13. This is what the Supply Graph looks like

14. 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 price. 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….

15. 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.

16. How much are you prepared to pay for a Mars Bar?
What affects your demand for the product?

17. Factors affecting demand
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Factors affecting demand
3min 14secs
Make notes on the factors affecting demand

18. Activity – Demand poster
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Activity – Demand poster
Create a poster to explain the factors which affect demand for your favourite product.
They might include:
The price
The price of rival brands
Fashion and taste
How easy it is to find and buy
How well promoted it is
Whether there was a chance to trial the product
There are more examples in your exercise book!
You have 20 minutes

19. Plenary – Lets wrap up demand
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Plenary – Lets wrap up demand
Demand street

20. Homework Don’t forget that I gave you a demand worksheet on Wednesday
28/11/2018
Homework
Don’t forget that I gave you a demand worksheet on Wednesday
This is due on Monday 21st September P2