Starter Define with a partner Dynamic market Market

Starter – Define with a partner • • • Dynamic market Market share Market size Niche market Mass market Remember you need a full explanation to get 2 marks.

Glossary • Dynamic market; a market that is constantly changing to suit customers needs and wants • Market share; the % of a market that a business, product or service has • Market size; measured by volume of sales or value • Niche market; a subset of a normal market that caters for specific consumer needs and wants • Mass market; products or services that are sold or advertised to everyone at the same time in the same way

Market Positioning - Define • • Market mapping Added value Product differentiation Competitive advantage

Glossary • Market mapping; Market mapping is about positioning the products/service a business plans to provide • Added value; value added is when a business chooses to enhance the quality of a core product by providing extras to improve a customer’s utility/experience • Product differentiation; How a business differentiates its products; through reputation, service, features or value • Competitive advantage; An advantage a business has over its competitors, allowing it to generate larger than average turnover for the industry

How much would you pay for this? Think! Pair! Share!

Inputs 7 p per sandwich 1 p per sandwich Total cost per sandwich = 28. 2 p 20 p per sandwich 0. 2 per sandwich

How much would you pay for this? Why? Think! Pair! Share!

How much would you pay for this? Why? £ 1. 80

It’s because of added value! The difference between what a business pays its suppliers and the price it charges. Tesco charges more because they made it into a sandwich and it’s convenient!

How much added value? £ 1. 80 Added value is equivalent to the increase in value that a business creates by undertaking the production process. £ 1. 80 – 28. 2 p = £ 1. 518 added value

USP Unique Selling Point • A USP is a characteristic of a product that makes it different from other similar products sold in the market • A USP makes a product worth paying extra for

Quality • Businesses with a reputation for producing high-quality goods/services are able to charge a premium price for their products • Some customers insist on best quality products

Convenience • Customers are prepared to pay more for a quick service and the convenience of readymade or pre-assembled products • The benefit of this is saved time

Branding • A strong brand stands out from the competition and has its own image and reputation which some customers are able to associate with • Brand choice can say a lot about a customer

Design • A product that has a distinctive design will stand out from the competition • Customers will be able to see this difference and will be prepared to pay the higher price

Market Research -Define • • Qualitative data; Quantitative data; Product orientation; Market orientation; Primary market research; Secondary market research; Market segmentation;

Glossary • Qualitative data; data gathered that is numerical such as % of customers who buy more than once a week • Quantitative data; non numerical data such as how customers use the product • Product orientation; to sell products and services that the business wants to produce • Market orientation; to sell products or services based on customer needs and wants • Primary market research; information which has to be gathered • Secondary market research; information which already exists • Market segmentation; a whole market can be divided into sections called segments

Mind Map In groups make a mind map for one topic area: Market Research Market types Market Positioning

Homework • Data Response Page 27, 28 – Due Tuesday • Write revision notes. Bring these to class next Tuesday

Past Paper Question from 2014 2 (a) In February 2012, football star David Beckham launched a range of men’s underwear called Bodywear. This range is only being sold in H & M high street stores. This business opportunity for H & M is best described as a form of : A test marketing B trade-off C market mapping D market differentiation Answer ________ (1) (b) Explain your answer. (3) (Total for Question 2 = 4 marks)