Marketplace: Teen Nightclubs


This lesson printed from:

Posted July 27, 2006

Standards: 7, 14

Grades: 9-12

Author: Council for Economic Education Technology Staff

Posted: July 27, 2006

Updated: November 29, 2007


Ask your average teenager where they can hang out on the weekends and most will tell you there aren't many options. The movies, the mall and someone's house just about sum it up. So an intrepid entrepreneur in Los Angeles is looking to cash in on this underdeveloped market, by opening up a string of clubs for the under-21 club.


Advertising, Entrepreneur, Entrepreneurship, Markets


  • Identify effective marketing and promotional methods.
  • Describe factors that affect a business's success rates.
  • Understand that market prices are determined through the interaction of buyers and sellers.


Ask teenagers where they can hang out on the weekends and most will tell you there aren't many options. The movies, the mall, and someone's house just about sum it up. So an intrepid entrepreneur in Los Angeles is looking to cash in on this underdeveloped market by opening up a string of clubs for the under-21 club. Trang Ho has the story. See the marketplace audio segment for more information.

DancingOne factor that influences the success of a new business is its capacity to attract customers from an under-served market. In this lesson, students analyze the success of a nightclub for teens by reference to this factor and others.


[Note to teacher: The following link requires RealPlayer .]


Activity 1

Assign the students to listen to the Marketplace audio file about Teen Nightclubs (or read the printed transcript of it.) Play from 14:40 through 18:30. As they listen to the audio file, the students should complete an outline of important information contained in the story. Then they will use their outlines to answer factual and evaluative questions about economic concepts addressed within the story.

While the students are listening, they will use the Note-Taker to find supporting details concerning the following three factors as they relate to the success of Club One-Seven:

  • Marketing and Promotional Strategies
  • Income Potential for the Nightclub
  • Nightclub Manager's Concern for Safety of the Guests

Dancing TwoAs the students listen, they also will record words that are unfamiliar to them and words that denote important economic concepts. Then they should listen to the audio file again to gather additional supporting details and possible definitions of the vocabulary words, using context clues. These details and definitions will also be recorded in the Note-Taker.

Finally, the students will be asked a series of questions related to the story. The following questions are found at the end of the Note-taker interactivity:


1. What were some of the marketing strategies used by the Club One-Seven?

a. Radio, television, magazine advertisements
b. Television, billboards, paying teens to spread the word
c. Magazine, radio, paying teens to spread the word [correct answer]
d. School newspapers, magazines, television

2. Do you think these are effective strategies for marketing to teens? Are these traditional or innovative strategies? In addition to marketing strategies, what other factors contribute to the success of Club One-Seven?

3. How does Club One-Seven make money?

a. It charges customers a $20 cover charge. [correct answer]
b. It charges annual membership fees.
c. It sells advertising space on the walls.
d. All of the above.

4. What factors contributed to the decision to charge customers a $20 cover charge? What do you think would happen if the club raised the cover charge to $30?

5. How does Club One-Seven address safety and security?

a. No drugs or alcohol are allowed.
b. No weapons are allowed.
c. No smoking is allowed.
d. All of the above. [correct answer]

6. How do you think these safety and security rules will affect attendance? What additional rules do you think will help increase attendance?

Activity 2:
Visit the UCM Museum web site for information regarding renting a room for private parties.

You have just been hired by the manager of the museum to encourage the organizers of high school proms to use the building for their proms. Develop a marketing campaign to target schools within a two-hour radius of the UCM Museum. Consider the following:


  1. What 'traditional' marketing strategies might work when targeting teenagers? [Running commercials on top-40 radio stations, printing discount coupons on the entertainment page of the Friday night newspaper, etc. might work when targeting teenagers.]

  2. What 'innovative' marketing strategies can you think of that might be more effective when targeting teenagers? [Answers will vary]

  3. Since teenagers are an 'under served market,' how might that affect your campaign? [Students can emphasize the point that there are few entertainment facilities created specifically for teenagers]

  4. Is there anyone else you need to consider (other than the teens at the school) who might influence a school's decision? [Other than the teens at the school, parents, teachers, and administrators need to be considered.]

  5. How will your campaign address those additional people? [Students can focus on the safety record of Club One-Seven]


Evaluation 1: Collect the students' Note-Taker Activity responses. Check to be sure that the students have referred to the key concepts discussed during the activity.

Evaluation 2: Collect a copy of students' answers for Activity 2. Look for thoroughness and supporting information in their answers.

Evaluation 3: Have the students present their ideas from Activity 2 to the class. Have them work in groups to discuss similarities and differences among and between the ideas.


DancingBy the conclusion of this lesson, the students should be able to identify at least three main factors in the success of the UCM Museum and Club One-Seven.


Activity 1
Various factors contribute to the success of Club One-Seven. Examine how other companies appeal to their buyers. Students will complete "Marketplace: Corporate Leap Frog" to further explore concepts of advertising, competition, and price.

Activity 2
Students will examine the basic concepts of business competition and the roles of buyers and sellers. They will complete "Marketplace: What Is Competition?"

Activity 3
Part of Club One Seven's success is the fact that it is serving an underdeveloped market. Create a business that will provide competition to Club One Seven by serving the same market.