Syllabus: Pearson Edexcel AS Business Module: Meeting Customer Needs
Lesson: 1.1.1 The Market

Introduction

The “1.1.1 The Market” topic forms a foundation for the Pearson Edexcel AS Business course (Theme 1: Marketing and people). It introduces learners to the concept of a market and how customer needs are identified and met. The focus is on understanding the dynamics of different types of markets and how businesses use market data to make informed decisions. This unit aligns closely with Pearson’s specification by building core business acumen early, while also providing a natural route into practical applications – something both examiners and employers value.

Key Concepts

According to the Pearson Edexcel AS Business specification, learners should be able to:

• Define what a market is, distinguishing between mass and niche markets.

• Understand market size, market share and how these metrics are measured.

• Explain the importance of competition in markets and its influence on price and product decisions.

• Distinguish between product- and market-oriented businesses.

• Understand how businesses identify and adapt to dynamic markets, including changes in consumer behaviour and the impact of innovation.

• Recognise risk and uncertainty in market activity and the need for businesses to anticipate and respond to external changes.

This topic is closely linked to market mapping and segmentation (covered later in Theme 1), so it’s worth signposting that early on.

Real-World Relevance

The COVID-19 pandemic reshaped markets globally = some shrank overnight (international travel), while others grew exponentially (e.g. home fitness equipment). A contemporary example is the shift in grocery retailing: Aldi and Lidl have steadily grown market share in the UK by responding to changing customer needs – price sensitivity, convenience, and quality – while larger players like Tesco have had to innovate with formats like “GetGo” checkout-free stores.

In niche markets, brands like Oddbox (wonky veg boxes) or Lush (ethical cosmetics) illustrate how understanding and meeting customer values – sustainability, ethics, transparency – can define a market position and attract loyal segments.

How It’s Assessed

Assessment of this topic in Pearson Edexcel AS Business typically appears in Paper 1: Marketing and People. Expect a mix of:

• Multiple-choice and short-answer questions to test definitions (e.g., “Define market share”).

• Data response questions analysing shifts in market size or consumer trends.

• Application questions using real-world scenarios to explore how a business responds to changing customer needs.

• Command words include: explain, analyse, evaluate, calculate, and discuss.

Common pitfalls include misinterpreting market share vs. market size and confusing niche with small.

Enterprise Skills Integration

This topic is rich for embedding enterprise skills. Students can explore:

• Problem-solving: How do businesses adapt when customer needs shift rapidly?

• Decision-making: Should a new business target a mass or niche market?

• Analytical thinking: Use of market data (e.g. Mintel, YouGov) to interpret customer trends.

• Creativity and innovation: Ideation tasks around new product development to meet unmet needs.

Enterprise Skills’ MarketScope AI tool can be used here to simulate market trends and challenge students to adapt business plans accordingly.

Careers Links

This topic aligns well with Gatsby Benchmarks, particularly:

• Benchmark 4: Linking curriculum learning to careers – understanding how marketing, customer analysis and product design fit into roles like Market Research Analyst, Brand Manager or Product Developer.

• Benchmark 2: Learning from labour market information – students can use ONS data or tools like Statista to explore market growth sectors.

It’s also relevant for students considering careers in:

• Consumer behaviour and insights

• Digital marketing

• Product innovation

• Business development

Teaching Notes

Tips:

• Start with what students know: their own shopping habits. Then build up to more abstract concepts like market orientation.

• Use local businesses or current campaigns for real-life grounding.

• Encourage students to critique product offerings based on whether they meet a real customer need or are just marketing fluff.

Common pitfalls:

• Students often equate “niche” with “better” or “smaller” rather than “targeted”.

• Confusion between “market share” (a business metric) and “market size” (a whole market metric).

Extension ideas:

• Have students conduct a mini market survey and calculate estimated market size.

• Task groups to pitch a new product idea tailored to an unmet customer need, using MarketScope AI to validate assumptions.

By focusing not just on the theory, but how businesses apply it to thrive in a rapidly shifting landscape, this unit sets the tone for a dynamic and relevant AS Business experience.