Active learning ideas
Understanding the market is the first step in any successful marketing strategy. This topic covers primary research (collecting new data) and secondary research (using existing data), as well as the vital process of market segmentation, dividing a market into groups of customers with similar needs. Students also tackle the more technical concept of Price Elasticity of Demand (PED), which measures how sensitive customers are to changes in price.
Activity 01
Groups are given a generic product (e.g., a reusable water bottle). They must segment the UK market using demographic, geographic, and psychographic criteria, then design a specific 'value proposition' for one of those segments.
What is the difference between primary and secondary research?
Activity 02
Students act as managers of two competing coffee shops. They are given different PED values for their customers. They must decide whether to raise or lower prices and then calculate the impact on their total revenue based on the elasticity of their segment.
How does market segmentation work?
Activity 03
Post examples of different research methods (e.g., a focus group transcript, a social media poll, a government census report). Students move around and note the strengths and weaknesses of each for a specific business goal, such as launching a new vegan snack.
Why is price elasticity of demand crucial?
A few notes on teaching this unit
Watch Out for These Misconceptions
Secondary research is always better because it's cheaper and faster.
Secondary research can be outdated, biased, or not specific enough to the business's needs. A 'Data Reliability' check activity helps students see why primary research is often necessary despite the cost.
If a product is 'inelastic', the business should just keep raising the price forever.
Even inelastic products have a limit; eventually, customers will stop buying or find an alternative. Using a 'Price Ceiling' simulation helps students understand that PED is a snapshot in time, not a permanent rule.
Methods used in this brief
Setting Marketing Objectives
Understand how marketing objectives like market share and brand loyalty align with overall corporate goals. Students will evaluate the importance of setting clear, measurable marketing targets.
8 methodologies
The Marketing Mix
Investigate the 7Ps of the marketing mix and how they are integrated to create a cohesive marketing strategy. Students will analyse how the product life cycle influences pricing and promotional decisions.
8 methodologies