12

ENTREPRENEURSHIP
Quarter 1 – Module 3:
Recognizing Potential Market
Entrepreneurship– Grade 12
Supplementary Learning Resource
Quarter 1 – Relevance of the Course
First Edition, 2020

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Published by the Department of Education Region III

Nicolas T. Capulong, PhD, CESO V
Ronilo Al K. Firmo, PhD, CESO V
Librada M. Rubio, PhD

Development Team of the Module

Writer: Cristoper C. Liwanag

Maria Aurea Rueda
Editor: Gladys Glo M. Bondoc
Reviewers: Ma. Victoria C. Vivo, EdD
Cherry Len C. Briones
Gladys Glo M. Bondoc
Frederick John A. Macale

Management Team: Norma P. Esteban, EdD, CESO V

Leonardo C. Canlas, EdD. CESE
Fatima M. Punongbayan
Teresa R. Manlapaz, PhD
Arnelia R. Trajano, PhD
Salvador B. Lozano
Nora C. Lising, PhD

Printed in the Philippines by Department of Education – City of Malolos

Office Address: Bulihan, City of Malolos, Bulacan
Telefax: (044) 812-2006 / 812-2007
E-mail Address: [email protected]
 12

Entrepreneurship
Quarter 1 – Module 3:
Recognizing Potential Market

This instructional material was collaboratively developed by writer and

graphic designer, edited and reviewed by the Regional Quality Assurance
Team of DepEd Region III.
We encourage teachers and other education stakeholders to email
their feedback, comments, and recommendations to the Department of
Education at [email protected].

We value your feedback and recommendations.

Introductory Message

For the facilitator:

Welcome to the Entrepreneurship for Grade 12 Alternative Delivery Mode

(ADM) Module on Recognizing Potential Market!

This module was collaboratively designed, developed and reviewed by educators both
from public and private institutions to assist you, the teacher or facilitator in helping
the learners meet the standards set by the K to 12 Curriculum while overcoming
their personal, social, and economic constraints in schooling.

This learning resource hopes to engage the learners into guided and independent
learning activities at their own pace and time. Furthermore, this also aims to help
learners acquire the needed 21st century skills while taking into consideration their
needs and circumstances.

In addition to the material in the main text, you will also see this box in the body of
the module:

Notes to the Teacher

This contains helpful tips or strategies that
will help you in guiding the learners.

As a facilitator you are expected to orient the learners on how to use this module.
You also need to keep track of the learners' progress while allowing them to manage
their own learning. Furthermore, you are expected to encourage and assist the
learners as they do the tasks included in the module.
For the learner:

Welcome to the Entrepreneurship for Grade 12 Alternative Delivery Mode (ADM)

Module on Recognizing a Potential Market for Entrepreneurs!

The hand is one of the most symbolized part of the human body. It is often used to
depict skill, action and purpose. Through our hands we may learn, create and
accomplish. Hence, the hand in this learning resource signifies that you as a learner
is capable and empowered to successfully achieve the relevant competencies and
skills at your own pace and time. Your academic success lies in your own hands!

This module was designed to provide you with fun and meaningful opportunities for
guided and independent learning at your own pace and time. You will be enabled to
process the contents of the learning resource while being an active learner.

This module has the following parts and corresponding icons:

What I Need to Know This will give you an idea of the skills or
competencies you are expected to learn in the
module.

What I Know This part includes an activity that aims to

check what you already know about the
lesson to take. If you get all the answers
correct (100%), you may decide to skip this
module.

What’s In This is a brief drill or review to help you link

the current lesson with the previous one.

What’s New In this portion, the new lesson will be

introduced to you in various ways such as a
story, a song, a poem, a problem opener, an
activity or a situation.

What is It This section provides a brief discussion of the

lesson. This aims to help you discover and
understand new concepts and skills.

What’s More This comprises activities for independent

practice to solidify your understanding and
skills of the topic. You may check the
answers to the exercises using the Answer
Key at the end of the module.

What I Have Learned This includes questions or blank

sentence/paragraph to be filled in to process
what you learned from the lesson.

What I Can Do This section provides an activity which will

help you transfer your new knowledge or skill
into real life situations or concerns.
 Assessment This is a task which aims to evaluate your
level of mastery in achieving the learning
competency.

Additional Activities In this portion, another activity will be given

to you to enrich your knowledge or skill of the
lesson learned. This also tends retention of
learned concepts.

Answer Key This contains answers to all activities in the

module.

At the end of this module you will also find:

References This is a list of all sources used in developing

this module.

The following are some reminders in using this module:

1. Use the module with care. Do not put unnecessary mark/s on any part of the
module. Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities
included in the module.
3. Read the instruction carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with it.
If you encounter any difficulty in answering the tasks in this module, do not
hesitate to consult your teacher or facilitator. Always bear in mind that you are
not alone.

We hope that through this material, you will experience meaningful learning and
gain deep understanding of the relevant competencies. You can do it!
 What I Need to Know

This module was designed and written with you in mind. This will help you
understand Entrepreneurship, its definition, characteristics, types and functions.
This path will also discuss insights on the need to study the subject to the
community and society. The language used recognizes the diverse vocabulary level
of students. The lessons are arranged to follow the standard sequence of the course.
Hence, the order in which you read them can be changed to correspond with the
textbook you are now using.

The module is composed of the lessons, namely:

Lesson 1 – Market Analysis / Potential Market

After going through this module, you are expected to:

1. describe the concept of market segmentation ;and
2. identify the approaches in segmenting the market.

What I Know

PRE-ASSESSMENT

Select the best answer by writing them on a separate sheet of paper.

_____ 1. It is an entrepreneurial marketing strategy designed primarily to

divide the market into small segments
a. Market Segmentation c. Market Positioning
b. Market Targeting d. Service Analysis

_____ 2. It means having similar interests, preferences, needs, wants, and

other related variables.
a. Accountability c. Homogeneous
b. Competition d. Heterogeneous

_____ 3. It refers to a person’s locality, climate, culture and even ethnicity.

a. Geographic c. Psychological
b. Demographic d. Behavioral
_____ 4. It is considering the age, race, religion, gender, family size,
ethnicity, income, and education of a customer.
a. Geographic c. Psychological
b. Demographic d. Behavioral

_____ 5. It refers to the needs, wants, attitude and lifestyle of a person.

a. Geographic c. Psychological
b. Demographic d. Behavioral

What’s In
Looking at your previous lesson on Module 2, what are the job’s opportunity
as an entrepreneur?

What’s New

Answer the following questions. Write your answers in a separate sheet of

paper.
1. During this pandemic time, what do you think is the best products/services
to establish that will be essential to target market who can’t go outside their
home?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
2. How can you identify the market needs?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
 What is It

Everyone has potential to be an entrepreneur. If this statement is true, let us

study its relevance and discover your skills and interests. These lessons would give
you not only the unearthing of Entrepreneurship but also realize your abilities and
capacities.

Lesson
MARKET SEGMENTATION
1

Why is it important for the entrepreneur to recognize and describe the

customers of his / her planned business venture?

For a simple reason that not all will become customers of your chosen
business. It is crafted as the product is made to take advantage of market
opportunities for the specified market. For example, there are different types
of diapers available in the market. Some are for age range that is why they go
by sizes. Others are for sensitive skin or for overnight use. There are even
diapers for adults. This approach indicates that the business has defined or
identified the specific customer or market for each diaper product.

MARKET IDENTIFICATION
Target market identification is the tool used to define prospective consumers
using income, geographic, and lifestyle aspects of a market and census
information for sales and marketing campaigns, advertisement and
promotions (Lake, 2019).

There are three strategic marketing approaches that will assist the
entrepreneur in defining the specific market of the product. These are:

1. Market segmentation
2. Market targeting, and
3. Market positioning
 Market Market Market

Segmentation Targeting Positioning

Who is the
market?

Lesson The Three Entrepreneurial Marketing

2 Strategies to Identify the Market

Market segmentation is an entrepreneurial marketing strategy designed

primarily to divide the market into small segments with distinct needs,
characteristics, or behavior (Kotler & Armstrong, 2014). The market as a
whole is made up of different segments with different characteristics,
behavior, culture, traditions, and needs. As it is not possible to serve the
whole market efficiently when consumers are heterogeneous, the
entrepreneur must only find ways to appeal to homogeneous consumers. This
is generally achieved by segmentation of the market.

The commonly used methods for segmenting the market are:

1. Geographic Segmentation - The overall market is split by regional

locations in the Philippines, such as regional divisions, districts,
counties, towns, and so on. Where an entrepreneur segments the total
market into a smaller section using a regional segmentation. Climate,
dominant ethnic group, culture, density (rural or urban) and classification
of geographical unit are considered as variables.

2. Demographic Segmentation – the common demographic variables are

gender, age, income, occupation, education, religion, ethnic group, and
family size which are most used and easiest method for segmenting the
market since there is a direct relationship between demographic
variables to the needs and wants of the customers. For manufacturers
of beauty care and skin essentials target on gender and age.
 3. Psychological Segmentation – the variables considered are needs and
wants, attitude, social class, personality traits, knowledge and
awareness, brand concept, and lifestyle that mainly affects how
customers think and believe. Nowadays, most manufacturers of skin
care products focus on whitening and having natural ingredients as the
demand arises from the awareness of customers on harmful
ingredients.

4. Behavioral Segmentation – the factors under this segmentation

include perceptions, knowledge, reactions, benefits, loyalty, and
responses. Most grocery stores offer points reward system each
purchase of a customer leading to loyalty and constant buying behavior
of the customer.

Market targeting is a step in the market identification process that seeks to

classify a group of customers with similar desires and characteristics. They
are the business segment that the business plans to target. At this stage, the
entrepreneur has divided the whole market into different segments and is in
the process of evaluating each of the segment, thus selecting which target
market he / she intends to serve.

In this process, the entrepreneur should be careful in choosing a market

segment using a proper and critical evaluation of every segment considering
the following factors:

1. Size of segment and its expected growth are indicators in doing

business in a certain location. As an entrepreneur, one has to consider
competition if there are existing businesses even if the segment is
growing.

2. Existing and probable structure of the segment – as an entrepreneur,

questions about level of competition, existing and potential substitute
products, present and potential buyers in the segment, and bargaining
powers of both the customer and suppliers in the segment should be
considered.

3. Capability of the business – the very essential factor for this is the
internal environment of the business and the resources. Does the
business have what it takes for the existing opportunity?

Business positioning literally refers to the method of deciding the location

of business in the market. In order to assess the proper role of the planned
undertaking, the entrepreneur must perform an industry review of the
various qualities that are strong in the industry. On the other hand,
market positioning refers to the process of arranging a product to occupy
a clear, distinct, and desirable place in relation to other competing
products in the mindset of target consumers (Kotler & Armstrong, 2013).
 The following questions will be helpful in differentiating market
positions:
How is the product viewed by the customers in the market?
Is the product superior or inferior?
Is the price reasonable for the product?

In determining the market position of a product, these steps will be your

guide:
1. Determine if the market position is distinct from competitors in terms
of value and benefits for customers’ advantage.
2. Evaluate the advantages or benefits of each possible market position
3. Decide on the market position
Remember the two dimensions that differentiate a product from its
competitors, “lower price” and “more benefits”. Customers tend to buy
products with reasonable prices, thus weighing the benefits thereof.
After considering target position based on price and quality, the next
step is to determine how many attributes or benefits of the product.
Even a single attribute considered distinct from other products would
be enough for you as an entrepreneur to focus on promoting this to the
customers.

Lastly, in deciding on the market position two major dimensions should

be looked upon these are the price and quality.

Try looking at the following questions as your guide:

1. Should the product be sold at a higher price for to its attributes and
benefits?
2. Should the product be sold at the same price as the competitor's price
in spite of its benefits?
3. Should the product be sold at the same price as the competitor's
because they have similar benefits?
4. Should the product be sold at a lower price because it has less
benefits?
5. Should the product be sold at a higher price despite its lower benefits?

It is usually perceived that lower priced products have less or

inferior quality with less benefits and higher priced products have
better quality and more benefits.
 What’s More

I. Write True if the statement is correct. Otherwise write false and state your
reason briefly on a separate sheet of paper.

________ 1. All customers have the same wants.

______________________________________________________

________ 2. Market segmentation applies only to small

entrepreneurial ventures.

______________________________________________________

3. In geographic segmentation, the total market may be

________ divided based on the income of the population.

______________________________________________________

4. Demographic segmentation involves dividing the total

________ market based on the gender of the customers.

______________________________________________________

5. It is a must for the entrepreneur to segment the market.

________

______________________________________________________
 What I Have Learned

Answer the following items on a separate sheet of paper.

1. Discuss the things to consider before establishing a business

nowadays.
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________

2. Why is it important to identify the customers for your planned

business venture?
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________

3. As an entrepreneur, which is the most important method for

segmenting market and why?
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________

What I Can Do

POST LESSON ACTIVITY

MARKET ANALYSIS
Write the word True if the statement is correct and False if is incorrect on a
separate sheet of paper.

__________ 1. Market segmentation is necessary before establishing a business.

__________ 2. Entrepreneur must consider the needs and wants of his target
market.
__________ 3. An entrepreneur must identify the traits and characteristics of his
/ her target market.
__________ 4. Lower priced items have better quality and more benefits.
 __________ 5. People want more benefits at a reasonable price in buying items.
__________ 6. An entrepreneur must consider the location of his business and
this is called market positioning.
__________ 7. In analyzing the capability of the business, its resources should
not be considered.
__________ 8. Loyalty and rewards point are considered factors for psychological
segmentation.
__________ 9. Lifestyle is considered a factor in behavioral segmentation.
__________10. An entrepreneur should not identify his target market.

Assessment

Watch and observe three products being advertised or promoted on television.

Evaluate the segmenting methods used by the producers of the particular
products. Follow this format in making your report.

Product brand name Method used for segmenting

Product 1

Product 2

Product 3

Additional Activities

Let’s do it!

Instruction: Think of a product with several product lines that you wish to
manufacture, for example kakanin such as suman and puto. Determine the
segmenting approach that you think appropriate to use. Follow the format in
making your report.

Cosmetics Method used for segmenting

Foundation

Eye-brow pencil

Lip Tint
What can I do? What’s More
1. True 1. False – That is
2. True why Market
3. True Segmentation
4. False should be done.
5. True 2. False –
Identification of
6. False
the capability of
7. False your business is
8. False considered.
9. False 3. False – income
10. False is a factor of
demographic
segmentation
4. True
5. True
Pre-Assessment
1. A
2. C
3. A
4. B
5. C
Key to Corrections
References

Lake, L. (2019, August 05). What Is Target Market Identification? Retrieved October
09, 2020, from https://www.thebalancesmb.com/what-is-target-market-identification-
2295569

Aduana, N. L. (2016). Chapter 4 Market Identification. In Entrepreneurship in

Philippine Setting for Senior High School (pp. 137-161). Quezon City: C & E
Publishing.

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