Module 2 Recognize A Potential Market

Republic of the Philippines
Department of Education
Region VI-Western Visayas
Division of Antique
ANTIQUE NATIONAL SCHOOL
T.A. Fornier St., San Jose de Buenavista, Antique
ENTREPRENEURSHIP
Recognize a Potential Market
Quarter 1 – Module 2
Prepared by:
LOURENE J. GUANZON
Subject Teacher
Checked and Noted by:
SALVADOR J. SEMBRAN, PhD

Asst. Principal II
Introductory Message
Welcome to the Entrepreneurship for Grade 12 Self-Learning

Module (SLM) on Recognize a Potential Market
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.
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 tasks.
2. Read the instructions carefully before doing each task.
3. Observe honesty and integrity in doing the tasks and
checking your answers.
4. Finish the task at hand before proceeding to the next.
5. Return this module to your teacher 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. Always bear in
mind that you are not alone.
What This Module is About
This module will introduce you to recognizing a potential

market.
The following are the lessons contained in this module:
Lesson 1- Analyze the Market Needs

Lesson 2 – Understand Market, Product and Services
Lesson 3 - Understand Viability, Profitability and Customer
Requirements.
Lesson 4- Best product or service that will meet the market
need.
At the end of this module, you should be able to:
1. Analyze market needs;

2. Determine the possible product/s or service/s that will
meet the need;
3. Screen the proposed solution/s based on viability,
profitability, and customer requirements; and
4. Select the best product or service that will meet the market
need.
QUARTER 1-MODULE 2 Entrepreneurship
Lesson 1 – Analyze the Market Needs
Market Analysis is a quantitative and qualitative assessment of a

market. It looks into the size of the market both in volume and in
value, the various customer segments and buying patterns, the
competition, and the economic environment in terms of barriers to
entry and regulation.
“Marketplace Needs” is a marketing concept that relates to the

functional or emotional needs or desires of a market.
Main Customer Needs

1. Price-the amount of money that has to be paid to acquire a given
product. It is a measure of value
2. Quality-it is the degree to which the product or service meets
the customers’ expectation.
3. Choice-it the act of making or selecting a decision when faced
with two or more products or service providers
4. Convenience-an element of customers’ experience that saves
the customer time and effort
Components of Market Analysis

1. Customer Description-person or company that receives,
consumes or buys a product or service
2. Customer Perception-refers to customers’ awareness, their
impressions and their opinion about a certain business, product,
brand or service rendered
3. Market Trends-perceived tendency of financial markets to

move in a particular direction over time
4. Market Projection-a core component of a market analysis. It

projects the future numbers, characteristics and trends in your
target market.
5. Market Competition-the rivalry between companies selling
products or rendering services with the goal of achieving revenue,
profit and market share growth.
A convenient way of doing market survey is to prepare simple
questionnaires which can be used by entrepreneurs to remind
themselves of which questions to ask.
Activity 1.1
Direction: Prepare a Survey Questionnaire for a new
product/service you want to introduce.
Basic Question in Market Analysis

The following table shows the seven basic questions that
you must be asked in preparation for any major market analysis.
How to conduct a Market Analysis?

1. Determine the purpose of your study.
2. Look at your industry’s outlook.
3. Pinpoint target customers.
4. Compare your competition.
5. Gather additional data.

6. Analyze your findings.
7. Put your analysis into actions.
Market Analysis Methodologies
1. Focus Group Discussion (FGD) is one of the most common

qualitative research tools. It is effective in extracting consumer and
non-consumer experiences regarding products, places or
programs. This method can also be used for generating initial
insights.
FGD can be used to address substantive issues such as:

• Understanding consumers’ perception, preferences, and
behavior concerning a product category;
• Obtaining impressions on a product concept;
• Generating new ideas about older products;
• Developing creative concepts and copy material for
advertisements;
• Securing price impressions; and
• Obtaining preliminary consumer reaction to specific
marketing programs.
Four Key Decisions to be made in FGD
• Respondents Selection
1. Definition of respondents.
2. Classification of respondents; and
3. Screening of respondents
• Sample size
• Data gathering
1. Selection and preparation of the venue and equipment;
2. Formulation of the discussion agenda; and
3. Drawing out significant insights from the participant.

• Data Analysis
1. Integration of the information gathered;
2. Some observations on respondent’s behaviour; and
3. Listing of recommendations and report writing.
Nine steps in conducting FGD

• Develop research objectives;
• Determine the participants profile;
• Determine the appropriate compensation/token for the
participants;
• Develop participants; screener questionnaire;
• Recruit the participants;
• Select good facilitator;
• Develop facilitators discussion guide;
• Arrange for the venue and logistics; and
• Analyze the results of the FGD.
2. Survey/Interview is the most preferred instrument for in-depth

quantitative research. The respondents are asked a variety of
questions which are often about their personal information, their
motivation and their behaviour. It can be conducted via telephone,

mail or personal.
3. Observation technique is probably one of the best ways of

gathering data about customers in their natural setting without
having to interact or talk to them.
Methods of Generating New Product/Services

1. Focus Group
A moderator leads a group of 8-14 participants through an open,
in-depth discussion in a directive or non-directive manner. This is
an excellent method for generating and screening ideas and
concepts.it allows people to be stimulated to
greater creativity.
2. Brainstorming
Good ideas emerge when the brain storming effort focuses on a
specific product or market area.
Rules of Brain Storming:

• No criticism of ideas or suggestions. Every idea even the
wildest non-feasible idea is accepted;
• Freewheeling discussion is encouraged;
• Quantity of ideas is desired; and
• Combinations and improvements of ideas are encouraged.
3. Problem Inventory Analysis

Consumers are provided with a list of problems and are asked to
identify products that have those problems. Results must be
carefully evaluated as they may not actually reflect a new business
opportunity.
Sources of New Product/Services

1. Consumer
Monitor potential ideas and needs from customers and formally
arrange for consumers to express their opinions.
2. Existing Products and Services

Analysis of Products and services uncovers ways to improve
offerings that may result in a new product or service.
3. Distribution Channels
Channel members can help suggest and market new products.
4. Government (patent office)

Files of the Patent Office can suggest new product possibilities.
5. Research and Development

Conduct research on your market and your customers’ needs. This
results to the development and identification of new and improved
product and services.
Generating New Product/Services for Conventional or

Innovative Businesses
Conventional ideas can be taken from tried and tested business
models like opening up a snack bar in competition with almost 100
others in a particular city. For innovative businesses, however, a
product can be introduced that is not yet known to the market.
Needless to say, it is where experimentation and boldness in
business come in
1. Conventional business scenario

a. Start a business that you are familiar with;
b. Start a business due to the needs of existing business contacts;
c. Gain business inspiration from your hobby or interest;
d. Gain inspiration from imported items; and
e. Explore the possibility of import business.
2. Innovative business scenario

a. Gain inspiration from the needs and wants of the costumers;
b. Gain an inspiration from the problems and issues that bothered
you and your peers;
c. Study the usual or existing solutions and venture in the
alternative solution; and
d. List down existing products and find out their other uses from
what was stated.
Survey of Market Size and Value

A different set of questions is needed when assessing the
size of the market for a particular type product and the value of the
market (the amount of money spent on that product or service type
each month or year). At the same time it is possible to gather
information about the types of people who buy a particular product
or service and where we can avail them.
The information gathered from potential consumers can be
analysed by the entrepreneur to get a good idea of the quality
characteristics of the product/service that consumers prefer, the
total demand for the product and the total value of the market.
This involves making a number of assumptions and it is important
to consider the following:
• are the people interviewed really representative of all
potential;
• was the number of people interviewed enough? And
• were people giving accurate information?
Below is a sample questionnaire about market size and value:

Activity 1.2
Direction: Make/Prepare a survey questionnaires about market
size and value for the product which you would like to sell.
Market share and competition
Market surveys and calculation of market size and value are

important to find out whether the demand for a product really
exists.
It is therefore important from the outset, to estimate the

proportion of the total market that a new business could reasonably
expect to have. This is referred to as market share.
It is often difficult to estimate a realistic market share. The

figure depends on a large number of variables.
In many cases, new entrepreneurs over-estimate the share

that they could expect, with the results that production operates at
only a small proportion of the planned capacity.
This figure should not be assumed to represent the scale of

production that could be expected. Even if no one else is currently
making a product locally.it is likely that once a new business starts
production and is seen by others to be successful, they too will

start up in competition.
Example:
Estimates of market share for a new food business with different
levels of competition
Activity 1.3
Direction: On a separate sheet of paper, follow the format
presented below to prepare an estimate share for the product you
want to introduce.
Competitors
Competitors are very important to the success or failure of a
new business. The entrepreneur should recognize that there are
different types of competitors.
• General competitors
• Type competitors
• Brand competitors
They also compete with the profit margin and level of service
that they offer to the retailers and with special offers or incentives
to costumers.
New entrepreneurs must therefore assess each of these

factors using a Strength, Weakness, Opportunities and Threats
(SWOT)analysis.
Example of a SWOT Analysis of a New Business in Relation to Competitors

Activity 1.4
Direction: Prepare a SWOT analysis of the product you want to
introduce in the market, follow the format given below.
Lesson 2 –Understand Market, Product and Services
Entrepreneurs take a deep study on how they will know

better on their potential market (how?). Know their wants and
needs including the demands; that includes the products they are
looking for, and what good and services have to be given to the
customers and how to deliver the products to the customers in a
safest way not to harm them because customers are the (VIP),the
very important person of all the entrepreneurs.
In market, there is a capability to purchase a product/service that

can be variable as it can expand or contact depending on certain
factors.
Market demand is the total demand of all potential customers for

a specific product/service over a specific period in a specific
market area.
Value, consumers have different needs and buying capacities,

consumers assign varying values on the same product or service.
The product with the highest quality does not always provide the
highest value for customers. In valuing customer, an entrepreneur
must give the good brand and quality of the product to their
customer, the product that suits their different needs that gives full
satisfaction in using and consuming it especially the consumer
goods.
Satisfaction, to ensure the maximum customer value and

satisfaction, entrepreneurs and marketers must: balance product
or service quality and price, establish consistency among product
availability, level of customer service and efficiency and have the
consumer and atmosphere feel comfortable and convenient.
Products are considered tangible goods wherein the goods can

be seen and touched or the intangible service that the enterprise
offers to its customers to satisfy their needs and produce the
expected results.
Services are the intangible goods wherein you will be paid

according to your profession, skills, and talents.
TYPES OF PRODUCTS
There are three types of product which can be distinguished

via consumption and tangibility. These are durables, non-durables
and services.
1. Durables- these are the products which have long interval

between repeat purchases because of their long-lasting nature.
(Example. television sets like HAIER and LG. cars like Toyota and
Mitsubishi etc.)
2. Non-durables- products have stronger repeat purchases

because they are consumable. (Example: shampoo, bar soap,
biscuits etc.)
3. Services- these are the products which are essentially

intangible because
there are no physical items involved (example: training services,
food vending,
dental and rental services etc.)
CATEGORIES OF PRODUCTS
1. Convenience Products have the lowest risk and lowest effort in

buying the products because consumers will not spend a lot of time or
money in buying those products and can be sold by wholesales.
(example; staple goods)
2. Preference Products are consumer goods that have the specific

preferences for brands or suppliers but are willing to make substitution
when necessary.
3. Shopping Products are products that consumers feel are worth the
time and effort to compare with other competing products. (example:
tiles)
4. Specialty Products are unique, customized products which have

their own niches, and this commands utmost loyalty from another buyer.
Activity 2
Direction: Fill up the table by filling the missing words using the different
types of products. Write answers on a separate sheet of paper.
Lesson 3 - Understand Viability, Profitability and Customer

Requirements.
Determining a Viable Business Idea

How do you verify your idea to work out whether your
chosen businesses are often successful and support you achieve
your career goal as an entrepreneur? Here are some processes to
consider:
1. Research the market.
Search the web, visit libraries, and look for industry reports’
information about costs, competition, the size and viability of your
target market. Search for blogs, magazines, trade journals,
newspapers, and other media intended at your
potential customer base.
2. Determine if there’s a paying customer.
To have a successful business, you will certainly need to

solve a problem for a particular customer. But before resolving on
an idea, identify who your perfect customers are, what their income
is, what their buying habits are, and how they create purchasing
decisions. You will get this information by conducting surveys
online, interviewing potential customers, and examining for
existing data on your demographic. Once you compile the
outcomes, you will have a clearer picture of your paying customer.
3. Solicit honest feedback.
Bounce your business idea off of your family, friends, and peers to
obtain some objective, real-world advice. Ask to prospective
customers, local storeowners, and even your competition (being
careful not to bargain your idea) to acquire their take on fair pricing
for your services and what they presently pay or charge for them
4. Consider your marketing strategy.
Since you maybe have limited time and resources, you want
to make sure to get the most bang for your marketing bucks.
Fortunately, many marketing strategies these days are fairly
inexpensive.
5. Evaluate the costs of your venture.
To make a sense of how many sales must be generated to

hide your expenses and eventually bring in some cash, you will
need to know how much it costs to run your business each month.
The following may assist you assess to answer those questions.
• Cost of materials. How much will the cost of inventory,

ingredients or product components?
• Cost of labor. If you’re doing the work yourself, what is your
time value? If you’re paying an employee, subcontractor or
freelancer to work, how much time and money will it take
that person to provide the product or services?
• Overhead. A part of your daily business expenses, like
phone, electricity, rent, heat, insurance, water, accounting,
legal, admin support and marketing, should be reflected in
your pricing.
• Pricing. Once you’ve calculated your costs, choose what
you’re going to charge your customers. Remember, you
must cover your costs and earn a profit on every sale or you
will end up out of business quickly.
If you are doing the legwork, you will acquire better

understanding whether you have a viable idea to make a profitable
business.
Most entrepreneurs turn up with a business idea, organize
a business plan, raise the needed capital (either investors or
personal savings), then bring it to market and hope to survive.
Here are some ways to guarantee success and profitability
to start up a business:
Ways to Ensure Success and Profitability in Starting a

Business:
1. Start by identifying a customer you want to attend.

Imagine if you could spend all day with the people you enjoy
the best. Who would they be? Now, imagine if you could add worth
to these people you care a lot, enrich their lives, and get paid to do
it!
For many of today’s most successful entrepreneurs, this is
not a illusion of their imagination. It is their reality because they
begin by recognize the customers they want to serve. You too can
do it!
Begin by classifying the people you want to wake up every
day and trade your life to serve. This simple first phase will ensure
you will feel fulfilled and satisfied as you begin an intense process
of launching your business.
2. Exchange ideas to your customers.
Once you have identified your ideal customer, you have two
options to consider: you can guess what products or services they
want or need, or you can talk and ask them what they want. Seems
like a clear choice, right?
The reality is that many businesses predict what their

customers want. This is the reason why most of them startups to
fail. They do not know the needs of their customers.
To set yourself apart, ask your customers with the goal of
identifying a problem that is profound and painful. Once you
discover a pain that is consistently shared among them, you know
to take the next step.
3. Let your customers create your business.
Your customers are marketing geniuses, as they can exactly tell

the solution to solve their pain.
4. Presell your product.
Identify the way you should charge for your solution.

Remember, your customers are marketing geniuses. Ask them, “If
I were to buy something like this to market, how much would this
be?” Then ask them to pay for it upfront.
You can offer incentives to them as a beta-user or founding
member by adding supplementary value to them. Here are some
few ways to consider:
A. Giving an intimate access to you as the founder.

They will provide feedback on the development of the
solution that will help you both customized your needs.
B. Offer to lock this starting rate in for the life.
It is easy to detect customer’s interest. But this is not
enough validation to introduce your business. If they are willing to
put their money where their doorway is, then you have confirmed
your business and locked in a customer base.
5. Launch the business with sufficient funds.
Once you have pre-sold avail enough to cover your startup

costs, you are ready to take action and put up a business. This
allows you to start with a tough customer base that you can work
closely with to guarantee the product is exactly what they are
looking for.
6. Create your MVP and let your customers develop it.
Your job is to get a minimum viable product (MVP) to your

established members. If you have done a good job setting
opportunities, members are expecting to give you feedback to
enhance the product. Let them help you make it better! You will
end up with an improved product, and they will feel emotionally
secured to you and the solution.
7. Scale your business.
It is time to scale the business. Some ways can do this is by

investing in marketing and considering partnerships and joint
ventures. You can assure invest in these areas because you have
a product that are created for your ideal customers. This means
you are not predicting it will work -- you know it will work
because your customers stated you so. If you are ready into
entrepreneurship, follow some steps to assure your success and
profitability.
Knowing Your Customer Needs or Achieving Customer

Requirements
Though good your product or service is, the simple truth is

that no-one will buy it if they don't want or e they don't need it. You
won't convince anyone that they want or need to buy unless you
clearly understand what it is your customers really want.
Knowing and understanding customer needs is main point
of every successful business, whether it sells directly to persons or
other businesses. Once you have this information, you can use it
to attract potential and existing customers that buying from you is
in their top interests.
Why do your customers need you?

Every business needs a purpose for their customers to
purchase from them and not their competitors which is often called
a Unique Sales Proposition (USP). Your USP can be
acknowledged by completing the phrase "Customers will buy from
me because my business is the only..."
Your USP can transform as your business or your market
changes, and you can have different USPs for various types of
customer.
For Example:
• A stationery store could bargain a free same-day delivery
service for its business
customers within an area - an effective USP for businesses that
need fast delivery.
• The same stationery store could bargain also a 5 percent
discount to businesses that spend more than ₱100,000 a
month - this would be a USP for cost-conscious customers.
All of these USPs can be effective because they are

determined by what the customer looks for when making decision
to buy.
It is a better idea to review your USPs regularly. Consider
asking your customers why they purchased from you. This will
convey you what they think your USP may differ from what you
think from your own USP.
It is also important to check continuously what your competition
is doing. Remember - your competitors are doing the same, make
your own unique USP.
The Customer's Current Supplier

Chances are your prospective customer is already
purchasing something the same to your product or service from
someone else. Before you can sell it, you need to know the
following:
• who the customer's current supplier is
• if the customer is satisfy with their current supplier
• if it can offer the customer any benefits - and, if so, what
those benefits would be.
The easiest way to identify a prospective customer's is find out

what benefits they're looking for, you view a better chance of being
able to sell to them. The benefits may be associated to amount or
levels of service. Are there some benefits that your business can
offer better than those the prospective customer already receives?
If there are, these should form the foundation of any sales strategy
you make. But before that, you need to know first your prospective
customer. Here are some tips:
1. Who they are. Find out your customers' demographic profile

such as their gender, age, marital status and occupation. If you sell
to other industries, find out the size and kind of business they are.
For example, are they a small private company or a mega
corporate company?
2. What they do. If you sell a product directly to a customer, it is

better to know their occupations and interests. This will help you to
have an understanding of what their business is trying to achieve.
3. Why they buy. Knowing why customers buy a product or

service can be easier to identify their needs to the benefits your
business can offer.
4. When they buy. Approaching a customer just at the time they

want to buy, will massively increase your chances of success.
5. How they buy. Some people prefer to online, while others prefer
a face-to-face meeting are some ways to purchase their product.
6. How much money they have. Business can be more

successful if you can match you’re offering to what you know your
customer can afford.
7. What makes them feel good about buying. If you know what
makes them comfortable, you can serve them in the way they
prefer.
8. What they expect of you. For example, do not disappoint

customers expecting reliable delivery from you, stand to gain
repeat business.
9. What they think about you. Customers likely to buy more if

they enjoy dealing with you. And you can only solve problems if
you know what they are.
10. What they think about your competitors. Know your

customers view your competition, you stand a better chance of
continuing ahead of your rivals.
Activity 3.1
Assessment 1: DRAW ME!
What you need:

A4 size bond paper
Ruler
Pencil/pen
Any coloring materials
What you have to do:
1) If you are an entrepreneur, think of your own viable and
profitable business to start-up.
2) Copy the box on the next page including the title in an A4 size
bond paper with 1-inch margin on all sides.
3) In the box, draw or illustrate your viable and profitable business
applying the tips that have been discussed.
4) Below the illustration, write a short explanation on choosing that
business.
5) Make your output presentable and creative.
Activity 3.2
Direction: Read the situation carefully. Answer the following
requirements in each task.
Tasks:
1. Copy the sample questionnaire in a separate sheet of paper.
2. Using the guide questions on the next page, interview at two (2)
adult members in your family/relatives with in your compound.
3. Write down their separate responses in each provided column.
4. Review each response. Below the questionnaire, write a
summary and a conclusion if your ideal business will meet your
customer needs or requirements.
Lesson 4 - Best product or service that will meet the market

need.
The following are few questions to help you narrow your

focus in the selection of the best product or service that will work
for you:
1. What are your primary considerations for choosing a

particular product?
Make a list of your selection criteria, and what you think are
important to you in identifying what business to engage in.
There are several reasons why it is necessary to select a product.

These factors include:
a. financial gain to your company,
b. low capital requirements,
c. favorable return rate,
d. adaptable successful strategy,
e. ready for manufacturing and innovation,
f. easy to reach sources or suppliers,
g. relatively low risk and realistic time frame.
2. Can you meet the needs of the customer and solve a

specific problem?
Your product must be an answer to a need or an
opportunity. You need to know how your products or services can
assist customers. This must have a proper significance that can be
understood, desired and needed by consumers. Include in your
product information and sales materials how customers can benefit
from your products.
Example: helping to reduce time, effort and expense.

3. How capable are you in producing your own product?

Just as an athlete needs to know his physical condition
before he enters a race, you must also know if you have the time,
resources and capability to produce your product.
Many entrepreneurs make the mistake of going forward with
a business idea only to find that they cannot afford the manpower
required, or do not have the resources to outsource the product
development. You must also evaluate at the onset how you can
scale up the production if there is a strong demand for the product.
4. What is the size of your potential reachable market?

You need to at least get an idea of the size of your market.
Know who are likely to use or benefit from your products. Many
small and home business entrepreneurs view market research as
an unwanted and costly expense, but realize who can pay off in
the long run, and how large the market is.
5. Would you need to comply with government rules and

regulations?
New laws or government rules and regulations can impact
your product. There are items that can be instantly sold without
government approval, such as fresh agricultural products and
home-made delicacies.
Others, however, require permits, licenses and approval
from the government such as pharmaceutical, cosmetics, milk
formula, processed foods, electronic appliances and gadgets and
other consumables that needed regulations for public or
consumer’s safety.
Depending on the type of your business, government
policies and guidelines may take effect and sometimes may
require you to obtain special certification, permit or license from
various agencies. Foods, drugs or medicines, and cosmetic
products are frequently scrutinized by the Food and Drug

Administration (FDA) until they are made available to the public.
6. Can the product be superior in quality, presentation or

marketing when there is a comparable product?
This entails knowing and understanding your unique selling
proposition.
Unique selling proposition is the one thing that makes your
product different than any other. It enumerates all the advantages,
benefits and answers customer’s needs and wants.
It is one reason they think consumers will buy the product even
though it may seem no different from many others just like it. The
product may have a lower price or more attractive packaging, or it
might taste or smell better, or last longer.
Below shows the Venn diagram of Unique Selling Proposition:
Meanwhile, a FAB (Features, Advantages and Benefits) Analysis

is needed when establishing a unique selling proposition.
The FAB Analysis

Before you can finally make your very own Unique Selling
Proposition, you need to do the FAB (Features, Advantages and
Benefits) Analysis. This is done to determine the quality and
competitiveness of the product you want to market.
Features tell about what’s intrinsic to the product or service. It

contains facts that are useful for customers in his or her decision
to buy.
Advantages should make potential customers think about what
makes your product the best option. It lists down your product’s
strengths over competitors.
Benefits are the main reason why the feature is important to the
buyer. Oftentimes these can motivate or convince the buyer
coupled by his developed positive emotions towards the product.
7. What are the potential sales, growth, profits, and time for
payback?
Before starting your business, run your numbers first. This
requires a careful study through extensive research or by creating
your own business plan.
A business plan is an important aspect in considering any
type of venture.
The following are the factors to be taken into account:
a. from the nature of your business,
b. how much capital would you need,
c. what customers’ need will you be able to meet,

d. where to find materials; and
e. what kind of suppliers will be your partners.
Of paramount importance are the figures or numbers you

would like to see and realize during the course of your business.
There must be projections of sales, expenses, profits for a certain
period of time and how long will you be able to double your capital
or retrieve your initial investment. A smart business plan can save
your business from falling apart. As the saying goes: “If you fail to
plan, you are planned to fail”. Study the example in Table 2.
Activity 4.1
Direction: Review the following business groups or category.

Enircle one which you think will satisfy you then explain why you
choose it. If none of the given choices, write your own business
group and justify your answer.
Activity 4.2
Directions: Identifying your passion, skills, customers need to be
solved and your product’s competitive advantage.
What you need

Pen or pencil
Activity Sheet/Short bond paper
What you have to do

Read the paragraphs thoroughly then supply the needed
information below. Copy and answer it in a separate sheet.
Passions and skills I have:
My Passions:
• _____________________________________________
• _____________________________________________
My Skills:
• _____________________________________________
• _____________________________________________
Customer’s need or problem I will solve:

• _____________________________________________
• _____________________________________________
Evidence that my service or product is different or better

(competitive advantage):
• _____________________________________________
• _____________________________________________
Activity 4.3
In the previous activities, you were tasked to choose the category

of business that interests you or very passionate about and have
identified which customers need you want to address. Now, let us
focus on the product that is brewing in your mind by making
Features, Advantages and Benefits (FAB) Analysis.
What you need

FAB Analysis Activity Sheet
Pen, Pencil and coloring materials
What you have to do

1. Review the FAB Analysis.
2. Copy the FAB Analysis template below on another sheet of
paper
3. Write the answers that required in the following statements:
a. Think of your favorite product.
b. Write the new name of your product.
c. Draw your new product.
d. List down the features in column 1, advantages in column 2 and

the benefits in column 3. (Follow the format of the given example
of FAB Analysis in the Discover part)
Reflection
In this module, I learned that…

____________________________________________________
____________________________________________________
____________________________________________________
References
Printed Materials:
De Guzman, Angeles A, (2018).Entrepreneurship for SHS. Quezon City,
Philippines: Lorimar Publishing ,Inc.
Morato, Eduardo A, (2016).Entrepreneurship. Manila, Philippines :Rex

Publishing, Inc.
Go C & Go J (2017). Principles and Practices in Marketing in the Philippines

(pp 216-222). Quezon City, Philippines: Josiah and Carolina Go Foundation,
Inc.
Morato, Eduardo A Jr. (2016). Entrepreneurship (pp 8-9, 60). Manila,
Philippines: Rex Bookstore, Inc.
Torres, Oscar & So, Real (2016). Principles of Marketing (pp 4-11). Quezon
City, Philippines: Vibal Group,Inc.
Acierto, Marife Agustin-. 2017. Entrepreneurship K to 12 Basic Education

Curriculum Senior High School – Applied Track Subject. Room 215 ICP
Building, Cabildo St., Intramuros Manila: Unlimited Books Library Services &
Publishing Inc.
Website
http://www.google.search.com

Module 2 Recognize A Potential Market

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Republic of the Philippines

Checked and Noted by:

SALVADOR J. SEMBRAN, PhD

Welcome to the Entrepreneurship for Grade 12 Self-Learning

The following are some reminders in using this module:

1. Use the module with care. Do not put unnecessary mark/s

If you encounter any difficulty in answering the tasks in this

This module will introduce you to recognizing a potential

The following are the lessons contained in this module:

Lesson 1- Analyze the Market Needs

At the end of this module, you should be able to:

1. Analyze market needs;

Lesson 1 – Analyze the Market Needs

Market Analysis is a quantitative and qualitative assessment of a

“Marketplace Needs” is a marketing concept that relates to the

Main Customer Needs

Components of Market Analysis

3. Market Trends-perceived tendency of financial markets to

4. Market Projection-a core component of a market analysis. It

Basic Question in Market Analysis

How to conduct a Market Analysis?

5. Gather additional data.

1. Focus Group Discussion (FGD) is one of the most common

FGD can be used to address substantive issues such as:

Four Key Decisions to be made in FGD

3. Drawing out significant insights from the participant.

Nine steps in conducting FGD

2. Survey/Interview is the most preferred instrument for in-depth

motivation and their behaviour. It can be conducted via telephone,

3. Observation technique is probably one of the best ways of

Methods of Generating New Product/Services

Rules of Brain Storming:

3. Problem Inventory Analysis

Sources of New Product/Services

2. Existing Products and Services

4. Government (patent office)

5. Research and Development

Generating New Product/Services for Conventional or

1. Conventional business scenario

2. Innovative business scenario

Survey of Market Size and Value

Below is a sample questionnaire about market size and value:

Market share and competition

Market surveys and calculation of market size and value are

It is therefore important from the outset, to estimate the

It is often difficult to estimate a realistic market share. The

In many cases, new entrepreneurs over-estimate the share

This figure should not be assumed to represent the scale of

production and is seen by others to be successful, they too will

New entrepreneurs must therefore assess each of these

Example of a SWOT Analysis of a New Business in Relation to Competitors

Lesson 2 –Understand Market, Product and Services

Entrepreneurs take a deep study on how they will know

In market, there is a capability to purchase a product/service that

Market demand is the total demand of all potential customers for

Value, consumers have different needs and buying capacities,

Satisfaction, to ensure the maximum customer value and

Products are considered tangible goods wherein the goods can

Services are the intangible goods wherein you will be paid