Syllabus: Pearson - A Level Business
Module: 1.1 Meeting Customer Needs
Lesson: 1.1.1 The Market

Introduction

This article supports teaching the Pearson Edexcel A Level Business course, specifically Topic 1.1.1: The Market, under the broader theme of Meeting Customer Needs. It’s designed for teachers, SLT, careers leads, and headteachers seeking clarity on curriculum alignment, classroom application, and real-world impact.

This topic introduces students to how markets operate, how demand and supply interact, and the different structures and types of markets. It lays the groundwork for deeper microeconomic analysis in later themes and connects directly with Paper 1 of the A Level Business qualification.

Key Concepts

From the Pearson A Level specification, students must be able to:

• Define and explain different types of markets, including mass and niche markets.

• Understand the difference between business-to-consumer (B2C) and business-to-business (B2B) markets.

• Analyse how markets are segmented and how businesses target and position their products.

• Identify and explain the importance of market size, share, and growth.

• Explore the difference between product- and market-oriented businesses.

• Understand the role of dynamic markets and how they evolve, including the impact of online retailing and innovation.

• Apply knowledge of competitive environments and their influence on decision-making.

This section builds the analytical vocabulary students need to evaluate real businesses and develop commercial awareness.

Real-World Relevance

Students often grasp these concepts best through practical examples. A few plug-and-play options for discussion:

• Streaming platforms (e.g., Spotify): operating in a mass, digital, and highly dynamic market—how have they responded to changing customer needs?

• Gymshark: a niche market success story targeting fitness-conscious Gen Z customers via influencer-led marketing and direct-to-consumer (D2C) channels.

• Supermarkets vs. Local Producers: how do businesses in highly competitive environments position themselves differently based on customer expectations?

Encourage learners to bring in their own examples and analyse them through the lens of segmentation, targeting, and competition. Tools like Enterprise Skills’ Business Simulations allow students to run a fictional company and explore how their choices affect market share and revenue—ideal for consolidating this knowledge through experience.

How It’s Assessed

Assessment of this topic appears in Paper 1, Marketing and People. Expect questions such as:

• Short-answer questions requiring definitions or basic application of terms like “market segmentation” or “niche market.”

• Data-response questions using case studies—students interpret market share data, assess strategic responses to change, or evaluate positioning decisions.

• Extended open-response questions that require analysis and evaluation of business decisions in context, often using command words like assess, analyse, evaluate, and discuss.

Students need to develop a balance between precise use of terminology and the ability to make supported judgements based on evidence.

Enterprise Skills Integration

This topic is ideal for building:

• Decision-making: through strategic choices about market entry or positioning.

• Problem-solving: identifying how to respond to customer needs in a changing market.

• Commercial awareness: spotting trends, evaluating competitor behaviour.

• Quantitative skills: calculating market share and interpreting data from charts or tables.

Enterprise Skills’ simulations bring these abilities to life by allowing students to act as decision-makers in competitive markets. They select products, target market segments, set prices, and manage budgets—all mapped directly to Pearson’s specification.

Careers Links

Understanding how markets function is foundational to multiple careers:

• Marketing: segmentation, positioning, and targeting.

• Product Management: adapting to dynamic markets.

• Entrepreneurship: identifying gaps and seizing opportunities.

• Consulting & Market Research: interpreting market data to inform strategy.

This topic supports Gatsby Benchmark 4 (linking curriculum learning to careers) and can easily be extended to Benchmark 5 (encounters with employers) using Enterprise Skills’ employer-informed simulations.

Teaching Notes

Time-saving tip: Start with student-led research into local or national brands. Who is their target market? How do they position themselves? Build a class wall of market examples.

Common pitfalls:

• Confusing market share with market size.

• Treating market types (e.g., niche/mass) as fixed, when many brands operate in hybrid models.

• Overlooking dynamic market forces (tech, trends, competitors).

Extension activity: Use the Skills Hub platform to drop in interactive tasks that let students test their understanding by choosing strategies and seeing simulated outcomes. No extra setup needed—just plug-and-play, syllabus-aligned activities that reinforce learning and build confidence.

Support differentiation with scaffolds like market mapping exercises or guided case studies for mixed ability groups.