1. 3.1.3 Market Changes

2. Learning Outcomes
To understand why customer/consumer spending patterns may change
To understand the power and importance of changing customer needs
To understand why some markets have become more competitive
To understand how businesses can respond to changing spending patterns and increased competition.

3. Research Starter
What happened to Blackberry – the first smartphone!

4. What about Tesco? Watch the 2 videos
Use our criteria to discuss what is happening

5. What do consumer spending patterns change?
The stage of the economic cycle
Fads/Fashions
New technology
Innovation
Marketing – what is ‘cool’ what is not?
Law changes
Lifestsyle changes
Pressure groups

6. Why some markets become more competitive?
More competitors entering – domestic & global (globalisation)
Growing market
Government controls over monopolistic businesses
Low barriers to entry – technology
Changing business landscape e.g. 3D printing

7. How businesses can respond to changing spending patterns and increased competition
Innovate
Unique selling points
Adapt promotional/pricing strategy
Add more value
Extend product life cycle
Develop new products
Encourage loyalty
Diversify

8. Task 2
Brainstorm & Refine your ideas