1 2 1 Customer needs Worksheet From Edexcel

1. 2. 1. Customer needs

Worksheet

From Edexcel Identifying and understanding customer needs: • What customer needs are: • • price quality choice convenience • The importance of identifying and understanding customers: • generating sales • business survival

Lesson objectives • To be able to identify and understand customer needs • To be able to discuss the importance of identifying and understanding customers

Starter • Which of these products do you need?

How about these products? • • • Aftershave Body scrub Toner Chapstick Washing machine cleaner Tumble dryer sheets • Can you think of others?

What customer needs are

Customer needs - price • Customers need a product or service that is the right price • Customers will have expectations about the price that they will pay for the goods How much do you think this jacket costs? Find out here Men´s clothing Jackets Superdry Polar Wind Attacker

Customer needs - quality • Customers need products that are of a satisfactory quality • For example the more you pay for a watch the more you expect it to last, keep time, look smart and for the strap not to break

Does quality matter?

Customer needs - choice How many types of yoghurt can you see in a supermarket?

Choice • Not every customer wants the same product or service, so businesses may produce a range

Customer needs convenience • In 1927, an entrepreneurial worker at the Southland Ice Company in Texas began selling milk, bread, and eggs from a storefront on the ice dock to make a little extra money. • Having access to ice for preserving the groceries, Joe Thompson was able to sell when other local grocery stores were closed in the late evenings and on weekends. • For the first time, the local community could shop outside of typical business hours, whenever it suited them. • Soon after, Joe added petrol and various other food, drinks, and "convenience" items to his inventory in a new store with the trading hours of 7 a. m. to 11 p. m. • By 2016, 7 -Eleven has grown to 56, 600 locations worldwide and is the prototype for convenience shops

The importance of identifying and understanding customers

Generating sales • A business needs to generate sales to survive • It can do this through: – Lowering the price – Promoting the product through advertising – Running a competition or other promotional activity – Improving the product • There are other methods of generating sales which depends on the product or service*

Business survival • If a business does not identify and satisfy customer needs it will not survive, simple two step plan; 1) find out what the customers want and need from a product and service 2) provide that product or service List here of businesses that went bust in 2016

Plenary • Have a look at this Tweet – what do you think is going on here?

Sample question 1

Answer question 1 • Answers are B and D • One mark for each correct answer

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