Unit #2: Market Research

Lesson 2: Identifying Target Markets

Curriculum Area: Social Sciences
Subject: Business Studies (NCEA Level 2 / NZC Level 7)
Time: 60 minutes
Class Size: 25 students
Unit Title: Market Research Mastery
Lesson Focus: Students will explore how to define and analyse target markets using demographic, psychographic, and behavioural characteristics. They will develop customer profiles based on real-world case studies and apply their learning to products relevant to life in Aotearoa New Zealand.

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Learning Intentions

By the end of this lesson, ākonga will be able to:

• Identify different market segmentation methods: demographic, psychographic, behavioural, and geographic.
• Apply these methods to analyse real-world consumer products.
• Define and justify target market characteristics for a selected product.
• Create a customer profile using data analysis and critical thinking.

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Key Competencies

This lesson supports the development of the following Key Competencies from The New Zealand Curriculum:

• Thinking – critically analysing market data and consumer behaviour.
• Relating to others – working collaboratively and respectfully in paired analysis.
• Using language, symbols, and texts – interpreting marketing language and market segmentation data.
• Managing self – organising work and staying focused during pair and independent tasks.
• Participating and contributing – sharing ideas during discussion and peer feedback.

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Values

This lesson reflects the values of innovation, inquiry, and curiosity, and supports students to be future-focused citizens who can confidently analyse economic information relevant to their lives.

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Prior Knowledge

In Lesson 1, students explored the concept and purpose of market research and its place within the product development cycle. They discussed why understanding the customer is central to effective marketing.

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Resources

• Printed or digital copies of 3 different product case studies (NZ and Pacific-based, e.g. Whittaker’s Artisan Chocolate, Eco Store Cleaning Products, and Pacific Fusion Fashion).
• Stickers or sticky notes for brainstorming activities.
• Printed worksheet: Customer Profile Builder
• Whiteboard with markers / Smartboard
• Access to NZ demographic statistics profiles if possible (e.g. local council stats or Stats NZ – no live links needed for class time)

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Lesson Sequence

1. Karakia and Roll (2 minutes)

Start with a short karakia and warm welcome. This recognises manaakitanga and ensures focus before learning begins.

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2. Hook: “Guess the Customer” (8 minutes)

Whole Class Interactive Game

• Present a mystery product on the board (e.g. NZ-made eco-friendly yoga mat).
• Ask students: "Who do you think the target customer is?"
• Take quick-fire answers. Encourage them to justify their guesses ("Because it's eco-friendly, it’s probably for people who care about sustainability").
• Reveal key customer data – compare with guesses.

Purpose: Breaks ice, captures attention, and highlights intuitive ideas about customer characteristics.

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3. Input: Segmentation Models (10 minutes)

Teacher-led mini-lecture and discussion

Use the whiteboard or Smartboard to introduce and explain four segmentation types:

• Demographic – age, gender, income, education
• Psychographic – lifestyle, values, attitudes
• Behavioural – usage rate, brand loyalty, benefits sought
• Geographic – location (urban/rural, regions, etc.)

Examples provided for each based on popular NZ brands.

Question to class: “Can anyone think of a product that's clearly designed for a rural community in Aotearoa?”

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4. Pair Task: Decode the Data (15 minutes)

Paired Analysis Activity

• Distribute three case studies (one per pair). Explain that each pair chooses one product to analyse based on the segmentation types.
• Use the Customer Profile Builder worksheet to help guide the analysis. They must identify who they think the product’s intended customer is, and why.
• Prompt student thinking by encouraging them to look at branding choices, pricing, language used, environmental impact, etc.

Differentiation Tip: Provide an audio-recorded version of the task instructions or allow oral responses if preferred.

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5. Independent Task: Build a Customer Avatar (15 minutes)

Creative Thinking Activity

• Students now individually select any product they know and use (can be clothing, food, tech, etc.).
• On a blank A3 half-folded page (or digitally), they’ll create a customer avatar:
  • Name, age, lifestyle, interests
  • Job, spending habits, values
  • Where they live, why they’d purchase the product
  • Add drawings, doodles, or images if time allows

Optional Challenge: "Name your market segment" – invent a catchy name that captures the target market (e.g. “Eco Explorers” for green-minded adventure seekers).

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6. Peer Feedback & Reflection (7 minutes)

Gallery Walk or Pair Share

• Students pair up and exchange avatars. They must give one positive comment and one clarifying question.
• Ask reflective questions:
  • “What surprised you about your partner’s customer profile?”
  • “Would your product sell well to their avatar?” Why or why not?

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7. Wrap-Up and Exit Ticket (3 minutes)

Quick Write & Revise Thinking

Each student writes down:

• One new insight about target markets
• One change they’d now make to their own customer profile

Collect these as formative assessment for understanding.

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Assessment and Evidence of Learning

• Completion and quality of the Customer Profile Builder worksheet
• Engagement with case study analysis
• Creative and justified customer avatars
• Exit ticket responses aiding informal formative assessment

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Teacher Notes

This lesson supports the NCEA Level 2 Social Sciences focus on analysing economic world issues and draws specifically from Business Studies contexts. The analysis of customer behaviour and market segmentation ties into developing economic literacy and critical thinking consistent with the Big Ideas in the NCEA Learning Matrix: People make decisions to improve outcomes and Understanding people’s needs shapes enterprises.

You may choose to incorporate local examples from your community or partner with local businesses for increased authenticity across this unit.

Encourage ākonga to begin connecting these examples to their own enterprise ideas, preparing them for a mini-project in Lesson 5.

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Homework / Extension Opportunity

Students are asked to go home and observe/record 3 advertisements they see in one evening (on TV, TikTok, YouTube, etc.). They must come prepared in the next lesson to describe who they think the ad is targeting and why.

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Next Lesson: How to Collect and Interpret Market Research Data (Lesson 3 of 6) – including surveys, interviews, and digital tools.