This lesson covers market segmentation and the factors that influence demand. It discusses the differences between physical and virtual markets, and provides examples of virtual businesses. The key factors affecting demand are identified. Market segmentation is explained as dividing the market into subgroups with similar characteristics. The benefits of segmentation include better understanding customer needs and being able to target products more efficiently, while limitations are that segments are an approximation and knowledge of the market is required. Real-world examples of segmentation in cinema and television are provided.

1. Do Now!
What do you
remember from last
lesson?

2. Do Now!
Make a list of any
products/ services
that you think are
popular amongst
16-19 year olds.

3. Understanding Markets

4. Learning Objectives
By the end of this lesson you should be able to:
1. Understand the key features of physical and virtual
markets.
2. Identify the main factors that can affect demand and
identify examples.
3. To understand market segmentation including how and
why used and the benefits and limitations.

5. Nature and Types of Markets
Geographically
Customers are only a dispersed market
short distance away - customers
spread over a
large area.
LO1) Understand the key features of physical and virtual markets.

6. Nature and Types of Markets
Can you give some examples
of virtual businesses?
No physical presence
but exists virtually.
What are your views about
Many businesses have virtual business?
moved from ‘brick to
click’
Are there any advantages or
disadvantages to this method?
LO1) Understand the key features of physical and virtual markets.

7. What are the factors affecting
demand?
List….
The factors that
could affect demand
for products or
services.
LO2) Identify the main factors that can affect demand and identify examples.

8. Market Segments
What is market
segmentation?
What is the
purpose of
Where the market is market
broken down into segmentation?
smaller sections with
similar
characteristics.
LO3) To understand market segmentation including how and why used and the benefits and limitations.

9. Market Segments
LO3) To understand market segmentation including how and why used and the benefits and limitations.

10. Market segments in action
Watch the video about
JuJu.
What are some of the
issues with their
targeting?
What segment should
they be aiming for?

11. Market Segments
Match the product
to the correct
segment.
LO3) To understand market segmentation including how and why used and the benefits and limitations.

12. What are the benefits and limitations
of market segments?
BENEFITS LIMITATIONS
Better understanding of Depends on
needs of market. entrepreneurs
Able to meet the needs. knowledge of market.
Less expensive to develop Segmentation is an
targeted product. approximation of
Less wasteful of behaviour.
resources. May not be suitable for
Differentiate – charge businesses with limited
higher price. markets.
LO3) To understand market segmentation including how and why used and the benefits and limitations.

13. Segmentation in Cinema and TV
Read the case study
and answer
question 1, 2 and 3.

14. Finally…..
Write down….
A question based
on todays lesson
and test your peers.

15. Re-cap Learning Objectives
You should now be able to:
1. Understand the key features of physical and virtual
markets.
2. Identify the main factors that can affect demand
and identify examples.
3. To understand market segmentation including how
and why used and the benefits and limitations.