Market Segmentation Mastery

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Curriculum Context

This 15-minute lesson is designed for Year 10 Business Studies students, aligning with the UK GCSE Business curriculum, specifically under AQA GCSE Business Unit 2.2: Understanding Markets and Customers. The lesson focuses on "Marketing Segmentation: Importance to a Business." Students will explore how and why businesses segment the market and the impact segmentation has on success.

Objectives

By the end of the session, students will:

1. Understand the core reasons why businesses use segmentation.
2. Identify the benefits of segmentation to a business.
3. Analyse how market segmentation aids in meeting customer needs and boosts profitability.

Assessment Opportunities

The class will engage in quick formative assessment tasks, including discussion, targeted questioning, and a short pair activity to reinforce understanding.

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Lesson Flow Overview

Time Allocation: 15 minutes
Mode of Learning: Interactive, visual, and student-centred.

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Lesson Flow Details

Part 1: Introduction to Market Segmentation (2 minutes)

Teacher Input

• Start with a hook question to immediately engage students:
  "When was the last time you saw an advert that really made you feel it was designed ‘just for you’? Why do you think some businesses are so good at this?"

• Define Market Segmentation in a relatable way:
  "Segmenting a market means dividing customers into groups based on shared characteristics so businesses can meet their needs better. It helps businesses stay competitive and profitable in a crowded market—kind of like knowing what different members of your family want for dinner!"

• Brief introduction to the four key segmentation methods for context: Age, Income, Location, and Lifestyle.

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Part 2: Why Businesses Segment the Market (4 minutes)

Switch to a visual and interactive approach to cater to a range of learning styles.

Teacher Input:

• Present three tailored reasons for why businesses segment the market:
  1. Customer Targeting: Products are better matched to specific customer needs.
  2. Efficient Use of Resources: Marketing money better spent on the most valuable customer groups.
  3. Competitive Advantage: Staying ahead of rivals by offering tailored services or products.

Activity:
Use a think-pair-share exercise to engage students:
Present these two businesses on the board: a luxury car brand (e.g., Jaguar) and a fast-food chain (e.g., McDonald’s).
Prompt students to discuss in pairs:

1. Who do these businesses target?
2. How do they use segmentation to match customer needs?
3. Why is segmentation essential in their industries?

Follow-Up: Select a few pairs to share their insights with the class. Draw contrasts between products and customer targeting strategies.

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Part 3: Real-World Impact of Segmentation (5 minutes)

Activity:
Turn the class into business analysts.

1. Place four scenario cards at different stations in the classroom (or on the board if movement isn't possible). Each card briefly describes a company and their market (e.g., a toy company, fitness app, online grocery store, and high-end fashion brand).

2. Students split into small groups and ‘visit’ each station for 1 minute. Their task is to identify a key characteristic the company might use to segment its audience. For example:

   • A toy company might focus on age.
   • A fitness app might segment by lifestyle goals or habits.
   • High-end fashion could focus on income or prestige.

3. Reconvene and discuss as a class, highlighting how segmentation impacts marketing strategy for businesses in different industries. This allows students to apply theoretical knowledge in a real-world context.

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Part 4: Recap and Quickfire Summary (3 minutes)

Teacher Input:

• Summarise the key takeaway points, asking targeted recap questions:
  "Who can tell me the three main reasons businesses segment their markets?"
  (Customer targeting, resource efficiency, competitive advantage.)
  Then,
  "What happens if a business DOESN’T segment its market properly?"
  (E.g., wasted resources, missed customer needs, weaker competitiveness.)

Mini ‘Exit Challenge’:
Pass around small flashcards. Each student writes down:

1. One reason why businesses segment markets.
2. One benefit for businesses doing so successfully.

Collect these as they leave the room for a quick snapshot of learning and to adjust misconceptions in the next lesson if necessary.

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Differentiation

• Visual Learners: Use slides or printouts with a chart of segmentation types (e.g., age, income, location, etc.).
• Auditory Learners: Discuss real-life examples aloud, reinforcing with verbal questioning.
• Kinesthetic Learners: Include movement in the station activity or hands-on card sorting for market characteristics.
• Higher Ability: Encourage detailed analysis when discussing the long-term impacts of segmentation on competition.
• Lower Ability: Simplify the language used in scenario cards or group them with a peer for support during discussions.

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Resources Needed

1. Scenario cards (4 scenarios with identifiable segmentation characteristics).
2. Slides or visual aids (optional but useful for showing segmentation types visually).
3. Flashcards for the exit challenge.
4. Stopwatch or timer for interactive segments.

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Teacher Reflection and Next Steps

• Reflect on the exit flashcards to gauge knowledge retention and understanding.
• Use insights to build the next marketing lesson, perhaps diving deeper into case studies of UK businesses excelling in segmentation.