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3.1.2 Market changes

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Learning outcomes

■ You will be learning about market changes:

■ Why customer/consumer spending patterns may change

■ The power and importance of changing customer needs
■ Why some markets have become more competitive
■ How business can respond to changing spending patterns and increased
competition
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Research Starter

■ What happened to Blackberry – the first smartphone!

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What about Tesco?

■ Watch the 2 videos

■ Use our criteria to discuss what is happening

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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
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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

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How businesses can respond to
changing spending patterns and
increased
■ Innovate
competition
■ Unique selling points

■ Adapt promotional/pricing strategy

■ Add more value

■ Extend product life cycle

■ Develop new products

■ Encourage loyalty

■ Diversify
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Task 2

■ Brainstorm & Refine your ideas