7/8

EXPLORATORY
ELECTRICAL INSTALLATION
AND MAINTENANCE

Department of Education • Republic of the Philippines

 Environment and Market
Week 8
MARICEL E. LUCENA
Writer

The learner will be able to:

- analyze the market needs
- determine the possible products and services that will meet the need

Directions: Choose the letter of the best answer. Write your answer on a separate sheet of
paper.
1. This is generated by examining the goods and services sold outside by the community.
A. Business Creation C. Business Concept
B. Business Pricing D. Business Idea
2. A process of making a new product to be sold to the customers.
A. Product Analysis C. Product Development
B. Product Conceptualization D. Product Implementation
3. These are luxuries, advantages and desires that every individual considers
beyond necessary.
A. Wants C. Requirements
B. Desires D. Needs
4. This is the factor or consideration presented by a seller as the reason that one
product or service is different from and better than that of the competition.
A. Unique Selling Plan C. Unique Pricing Policy
B. Unique Selling Proposition D. Finding Value-Added
5. In this stage, the needs of the target market are identified, reviewed, and
evaluated.
A. Concept Development C. Project Development
B. Economic Analysis D. Refine Specification

Directions: Categorize the following Personal Entrepreneurial Competencies (PECs) according

to their cluster.
- Persistence - Opportunity seeking
- Commitment to work contract - Self-confidence
- Persuasion and networking - Information seeking
- Systematic planning and monitoring - Risk taking
- Demand for efficiency and quality - Goal setting

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 Achievement cluster Planning cluster Power cluster

To be successful in any kind of business venture, potential entrepreneurs should always look
closely at the environment and market. They should always be watchful of the existing
opportunities and constraints. The opportunities in the business environment are those factors
that provide possibilities for a business to expand and make more profits. Constraints, on the
other hand, are those factors that limit the ability to grow, hence reducing the chance of
generating profit. One of the best ways to evaluate the opportunities and constraints is to
conduct (Strengths, Weaknesses, Opportunities and Threats) SWOT Analysis.

SWOT analysis is a managerial tool to assess the environment. This gathers important
information, which in turn, is used in strategic planning. Strengths and Weaknesses are internal
in an organization. Basically they relate to resources owned by an organization, things that you
have control over, and as well as the extent of its marketing.

Opportunities and threats exist in the external environment. Opportunities relate to the market,
to the development of new technologies, and external factors such as government policies,
climate, and trends. Threats relate to what the competition is doing as well as legal and other
constraints

Product Development
When we talk of product development, we are referring to a process of making a new product to
be sold by a business or enterprise to its customers. Product development may involve
modification of an existing product or its presentation, or formulation of an entirely new product
that satisfies a newly defined customer’s needs and/or want and/or a marketplace.

The term development in this module refers collectively to the entire process of identifying a
market opportunity, creating a product to appeal to the identified market, and finally,
testing, modifying and refining the product until this will be ready for production. This product
can be any item to be sold to the consumers.

There are basic, yet vital questions that you can ask yourself. When you find acceptable
answers to these, you may now say that you are ready to develop a product and/or render
service.
1. For whom are the product/services aimed at?
2. What benefit will the customers expect from it?
3. How will the product differ from the existing brand? Or from their competitor?

Likewise, needs and wants of the people within the area should also be taken into big
consideration. Everyone has his or her own needs and wants. However, people have different
concepts of needs and wants. Needs in business are important things that every individual
cannot do without in a society. These include:
1. Basic commodities for consumption

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 2. Clothing and other personal belongings
3. Shelter, sanitation and health
4. Education

Basic needs are essential to every individual so he/she may be able to live with dignity and
pride in the community of people. These needs can obviously help you generate business
ideas and subsequently to product development.

Wants are desires, luxury and extravagance that signify wealth and an expensive way of living.
Wants or desires are considered above all the basic necessities of life. Some examples are the
eagerness or the passion of every individual which are non-basic needs like; fashion
accessories, shoes, clothes, travelling around the world, eating in exclusive restaurants,
watching movies, concerts, plays, having luxurious cars, wearing expensive jewelry, perfume,
living in impressive homes, and others.

Needs and wants of people are the basic indicators of the kind of business that you may engage
in because it can serve as the measure of your success. Some other good points that you might
consider in business undertakings are the kind of people, their needs, wants, lifestyle, culture
and tradition, and social orientation.

To summarize, product development entirely depends on the needs and wants of the
customers. Another important issue to deal with is the key concepts of developing a product.
The succeeding topic shall enlighten you about the procedure in coming up with a product.

Concepts of Developing a Product

Concept development is a very critical phase in the development of a product. From this stage,
the needs of the target market are identified and competitive products are reviewed before the
product specifications are defined. The product concept is selected along with an economic
analysis to come up with an outline of how a product is being developed. Below is a figure that
shows the stages of concept development of a product.

The process of product development follows these steps:

A. Identify Customer Needs - Using a survey form, interviews, researches, focus group
discussions, and observations, an entrepreneur can easily identify customers’ needs and wants.
In this stage, the information that can be possibly gathered are product specifications
(performance, taste, size, color, shape, lifespan of the product, etc.). This stage is very
important because this would determine the product to be produced or provided.
B. Establish Target Specifications - Based on customers’ needs and reviews of competitive
products, you may now establish target specifications of the prospective new product and/or
services. Target specifications are essentially a wish-list.
C. Analyze Competitive Products - It is imperative to analyze existing competitive products to
provide important information in establishing product/services specifications. Other products
may exhibit successful design attributes that should be emulated or improved in the new
product/service.
D. Generate Product Concepts - After having gone through the previous processes, you
may now develop a number of product concepts to illustrate the types of product/service that
are both technically feasible and would best meet the requirements of the target specifications.
E. Select a Product Concept - Through the process of evaluation between attributes, a final
concept is selected. After the final selection, additional market research can be applied to obtain
feedback from certain key customers.
F. Refine Product Specifications - In this stage, product/service specifications are refined on
the basis of input from the foregoing activities. Final specifications are the result of extensive
study, expected service life,and projected selling price, among others and are being considered
at this stage.

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G. Perform Economic Analysis - Throughout the process of product development, it is very
important to always review and estimate the economic implications regarding development
expenses, manufacturing costs, and selling price of the product/services to be offered/provided.
H. Plan the Remaining Development Project - In this final stage of concept development you
may prepare a detailed development plan which includes a list of activities, the necessary
resources and expenses, and a development schedule with milestones for tracking progress.

Finding Value
People buy for a reason. There should be something in your product/services that would give
consumers a good reason to go back and buy more. There must be something that has to make
you the best option for your target customers; otherwise they have no reason to buy what you
are selling. This implies further, that you offer something to your customers that will make them
value or treasure your product/ services. The value that you incorporate into your product is
called a value proposition. Value proposition is “a believable collection of the most persuasive
reasons that people should notice you and take the action you are asking for.” Value is created
by fulfilling deep desires and solving deep problems. This gets the people moving and spending
for your product/service.

Innovation
Innovation is the introduction of something new in your product/services. This may be a new
idea, a new method or a device. If you want to increase your sales and profit, you must
innovate. Some of the possible innovations in your products are change of packaging, improved
taste, color, size, shape and perhaps price. Some of the possible innovations in providing
services are application of new improved methods, additional featured services,and possibly
freebees.

Unique Selling Proposition (USP)

Unique Selling Proposition is the factor or consideration presented by a seller as the reason that
one product or service is different from and better than that of the competition. Before you can
begin to sell your product or service to your target customers, you have to sell yourself on it.
This is especially important when your product or service is similar to those around you. USP
would require careful analysis of other businesses’ ads and marketing messages. If you analyze
what they say or what they sell, not just their product or service characteristics, you can learn a
great deal about how companies distinguish themselves from competitors.

Here is how to discover your USP and use it to increase your sales and profit:
1. Use empathy. Put yourself in the shoes of your customers. Always focus on the needs of the
target customers and forget falling in love with your own product or services. Always remember,
you are making this product or providing for the target customers to eventually increase sales
and earn profit and not make this product or services for yourself. Essential questions such as
what could make them come back again and again and ignore competition? Most possible
answers will be focused on the quality, availability, convenience, cleanliness, reliability, and
friendliness.
2. Identify what motivates your customers. It is very important for you to understand and find
out what drives and motivates your customers to buy your product/service. Make some efforts to
find out, analyze, and utilize the information on what motivates the customers in their decisions
to purchase the product/services.
3. Discover the actual and genuine reasons why customers buy your product instead of a
competitor. Information is very important in decision making. A competitive entrepreneur
always improves their products/services to provide satisfaction and retention of customers. As
your business grows, you should always consider the process of asking your customers
important information and questions that you can use to improve your product/services.

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ACTIVITY 1
Directions: Select a successful entrepreneur/practitioner. Conduct an interview or make an
online research by utilizing the sets of questions below. Document the interview or your online
research.
1. How did you identify your customers?
2. What were your considerations in selecting your customers?
3. Explain how your product/services become unique to other product/s.
4. Did you consult somebody before you engage in this business? Cite sample insights that
you gained from the consultation.
5. What were your preparations before you started the actual business?
6. What creative and innovative techniques did you adopt to your product/services? What
was the effect of the innovative techniques to the sales and profits of your business?
7. What strategy did you consider to have a unique selling proposition to your
product/service?

Generating Ideas for Business

The process of developing/generating business ideas is not a simple process. Some people just
think of a bunch of business ideas, but some really are without ideas. There are two problems
that arise; first is the excessive generation of ideas that can make them forever remain in the
dreaming stage and second is when they do not have ideas and want to become
entrepreneurs. The most optimal way is to have a systematic approach in generating and
selecting a business idea that will be transferred to real business.

Here are some basic yet very important considerations you may use to generate possible ideas
for business:

1. Examine the existing goods and services. Are you satisfied with the product? What do
other people who use the product say about it? How can it be improved? There are many ways
of improving a product from the way it is made to the way it is packed and sold. You can also
improve the materials used in crafting the product. In addition, you introduce new ways of using
the product, making it more useful and adaptable to the customers’ many needs.
2. Examine the present and future needs. Look and listen to what the customers, institutions,
and communities are missing in terms of goods and services. Sometimes, these needs are
already obvious and felt at the moment. Other needs are not that obvious because they can
only be felt in the future, in the event of certain developments in the community. For example, a
province will have its electrification facility in the next six months. Only by that time will the
entrepreneur could think of electrically-powered or generated business such as photocopier,
computer service, digital printing, etc.
3. Examine how the needs are being satisfied. Needs for the products and services are
referred to as market demand. To satisfy these needs is to supply the products and services
that meet the demands of the market. The term market refers to whoever will use or buy the
products or service, and these may be people or institutions such as other businesses,
establishments, organizations, or government agencies. There is a very good business
opportunity when there is absolutely no supply to a pressing market demand.
4. Examine the available resources around you. Observe what materials or skills are
available in abundance in your area. A business can be started out of available raw materials by
selling them in raw form and by processing and manufacturing them into finished products. For
example, in a copra-producing town, there will be many coconut husks and shells available as
“waste” products. These can be collected and made into coco rags/doormat and charcoal bricks

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and sold profitably outside the community. A group of people in your neighborhood may have
some special skills that can be harnessed for business. For example, women in the Mountain
Province possess loom weaving skills that have been passed on from one generation to the
next generation. Some communities set up weaving businesses to produce blankets, as well as
decorative items and various souvenir items for sale to tourists and lowland communities.
Business ideas can come from your own skills. The work and experience you may have in
agricultural arts, industrial arts, home economics, and ICT classes will provide you with
business opportunities to acquire the needed skills which will earn for you extra income, should
you decide to engage in income-generating activities.
5. Read magazines, news articles, and other publications on new products and
techniques or advances in technology. You can pick up new business ideas from Newsweek,
Reader’s Digest, Business Magazines, “Go Negosyo”, KAB materials, Small-Industry Journal.
The Internet serves as a library where you may browse and surf on possible businesses. It will
also guide you on how to put the right product in the right place, at the right price, at the right
time. Listing of possible businesses to set up in an area may also be available from banks or
local non-government organizations.

Key Concepts in Selecting a Business Idea

Once you have embarked on identifying the business opportunities, you will eventually see that
there are many possibilities that are available for you. It is very unlikely that you will have
enough resources to pursue all of them at once. Which one will you choose? You have to select
the most promising one from among a hundred and one ideas. It will be good to do this in
stages. In the first stage, you screen your ideas to narrow them down to about five choices. In
the next stage, trim down the five choices to two options. In the final stage, choose between the
two and decide which business idea is worth pursuing. In screening your ideas, examine each
one in terms of these factors:
1. How much capital is needed to put up the business?
2. How big is the demand for the product? Do many people need this product and will
continue to need it for a long time?
3. How is the demand met? Who is processing the products to meet the need (competition
or demand)? How much of the need is now being met (supply)?
4. Do you have the background and experience needed to run this particular business?
5. Will the business be legal, not going against any existing or foreseeable government
regulation?
6. Is the business in line with your interest and expertise?

Environmental Scanning
There is a need to conduct environmental scanning to identify the needs and wants of people,
the niche for your business mission, and to give attention to trends and issues. This may also
serve as an evaluation of the type of entrepreneurial activity appropriate in the community.
Environmental scanning is defined as a process of gathering, analyzing, and dispensing
information for tactical or strategic purposes. The environmental scanning process entails
obtaining both factual and subjective information on the business environments in which a
company is operating. The development and innovative technological changes will make the
industry competitive and help it advance in terms of communication.

As a future entrepreneur, you must be well-equipped in this kind of advancement and

progression of your environment particularly in technology so as to secure the success of your
future business. Always think of something new, something novel, authentic, reinvent the
existing ones, and create your new version of goods/products, and services. For instance, your
own hair straightening is herbal, while in the other salons it is made of synthetic chemicals. This
kind of change being made will affect the existing principles in business and industries which will
lead to meeting the needs and wants of people in the community.

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Branding
Branding is a marketing practice of creating names, symbols or designs that identifies and
differentiates products/services from other products/services. It is also a promise to your
customers. It tells them what they can expect from your product/ services and it differentiates
your offerings from other competitors. Your brand is derived from who you are, who you want to
be and who people perceive you to be. Branding is one of the most important aspects of any
business. An effective brand strategy gives you a major edge in increasingly competitive
markets The features of a good product brand are as follows:
● Delivers the message clearly
● Confirms your credibility
● Connects your target prospects emotionally
● Motivates the buyer
● Concretizes user loyalty

Here are some simple tips to publicize your brand.

● Develop a tagline. Write a meaningful, unforgettable, and easy to remember statement
that captures the essence of your brand.
● Get a great logo. Create a logo suitable to your business and consistent with your tagline
and display prominently.
● Write down your brand messaging. Select key messages you want to communicate
about your brand.
● Be true to your brand. Deliver your brand promise.
● Be consistent. Be reliable and consistent every time.

In generating business ideas, you should first identify what type of business is suited to you.
You should analyze and scan the potential environment, study the marketing practices and
strategies of your competitors, analyze the Strengths, Weaknesses, Opportunities, and Threats
(SWOT) in your environment to ensure that the products/goods and services you are planning
to offer will be patronized and are within the easy reach by your target markets/consumers.

ACTIVITY 2
Directions: Try to list down all the probable business opportunities which you may wish to
venture in. Remember to consider the ideas and suggestions discussed in this lesson. Use the
suggested matrix below to indicate your choice. Write your answers in your notebook.

Example: Selling milk tea drinks

Positive Factors Negative Factors

Strengths Opportunities Weakness Threats

People who aspire to start a business need to explore the economic, cultural and social
conditions prevailing in the area. Needs and wants of the people in a certain area that are not
met may be considered as business opportunities. Identifying the needs of the community, its

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resources, available raw materials, skills, and appropriate technology can help a new
entrepreneur in seizing a business opportunity. People keep on searching for new things, new
trends, and new issues. For these reasons, an entrepreneur must hurriedly respond to these
needs and wants of people.

Product Conceptualization
Directions: Using the steps below, develop your own concept for your product/services. You
may use a separate sheet of paper or your notebook to write your answers.
1. Identify customer's needs
2. Establish target specifications
3. Analyze a competitive product
4. Generate product concept
5. Select a product concept
6. Refine product specification
7. Prepare a development plan

Directions: Choose the letter of the best answer. Write your answer in a separate sheet of
paper.
1. It is a marketing practice of creating names, symbols or designs that identifies and
differentiates products/services from other products/services.
A. Branding C. Innovation
B. Unique selling proposition D. Basic needs
2. From this stage, the needs of the target market are identified and competitive
products are reviewed before the product specifications are defined.
A. Unique selling proposition C. Branding
B. Concept development D. Innovation
3. It is the introduction of something new in your product/services.
A. Branding C. Innovation
B. Finding value D. Branding
4. Factor or consideration presented by a seller as the reason that one product or
service is different from and better than that of the competition.
A. Branding C. Innovation
B. Unique selling proposition D. Basic needs
5. Essential to every individual so he/she may be able to live with dignity and pride
in the community of people.
A. Wants C. Basic needs
B. Desires D. Requirements
6. In this stage, the needs of the target market are identified, reviewed, and
evaluated.
A. Concept Development C. Project Development
B. Economic Analysis D. Refine Specification
7. This is a meaningful and unforgettable statement that captures the essence of
your brand.
A. Product Naming C. Branding
B. Unique Selling Proposition D. Tagline
8. These are luxuries, advantages and desires that every individual considers

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 beyond necessary.
A. Wants C. Requirements
B. Desires D. Needs
9. This is generated by examining the goods and services sold outside by the
community.
A. Business Creation C. Business Concept
B. Business Pricing D. Business Idea
10. A process of making a new product to be sold to the customers.
A. Product Analysis C. Product Development
B. Product Conceptualization D. Product Implementation

Now that, you have all the needed information, are you ready to test your ability to generate
your own business idea? If your answer is yes, start studying the sample vicinity map of a
community with a population of three thousand people. A new housing project will be
constructed. This housing project targets the homeowners who are young couples with two kids.

In this activity, you need to answer the questions that may lead to the generation of a probable
business. Your answers to these questions will serve as the bases in formulating your own
business ideas.
1. Who do you think are your target consumers/markets?
2. Where is the most ideal location to situate your business?
3. Which products or services would appeal to your target consumers/markets?
4. Can you say that you have seized the most feasible business opportunity?

TEAM LEADER/VALIDATOR PAULINO M. SANDIGIO

ILLUSTRATOR ZOREN VALDISIMO

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