CKY Module 2 EM

Download as pptx, pdf, or txt
Download as pptx, pdf, or txt
You are on page 1of 36

Environment and Market Module 2

Prepared by: LOIDA F. ROSALIN


TIII-LSTHS
Introduction

• People who aspire to start a business need to explore


the economic, cultural and social conditions prevailing in
an 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 resources,
available raw materials, skills, and appropriate
technology can help a new entrepreneur in seizing a
business opportunity.
Introduction

• To be successful in any kind of business venture, potential


entrepreneurs should always look closely at the
environment and market.
• The opportunities in the business environment are those
factors that provide possibilities for a business to expand
and make more profits.
• One of the best ways to evaluate the opportunities and
constraints is to conduct SWOT (Strengths, Weaknesses,
Opportunities and Threats) 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 the
organization, by the things that you have control over, and as
well as to 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.
OBJECTIVES

• At the end of this module, you are expected to:


•  identify what is of ―value‖ to the customer;
•  identify the customer to sell to;
•  explain what makes a product unique and competitive;
•  apply creativity and innovative techniques to develop
marketable product; and
•  employ a unique selling proposition (USP) to the
product and/or service.
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. The 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, wants and/or a market place.
Product Development

• 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 it
becomes ready for production.
Product Development

• There are basic, yet vital questions that you can ask
yourself about product development. When you find
acceptable answers to these, you may now say that you
are ready to develop a product and/or render services:
• 1. For whom are the product services aimed at?
• 2. What benefits will the customers expect from it?
• 3. How will the product differ from the existing brand?
From its competitor?
Product Development

• Likewise, needs and wants of the people within an area should also be
taken into big consideration. Everyone has his/her own needs and
wants. However, everyone has different concepts of needs and wants.
Needs in business are important things that every individual cannot
live without in a society. These include:
• 1. basic commodities for consumption;
• 2. clothing and other personal belongings;
• 3. shelter, sanitation and health; and
• 4. education.
Product Development

• 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 will enlighten you about the procedure in
coming up with a product.
TASK 1.
Identify the needs and wants of people in your community with
regard to their age bracket? The first 2 columns were made for you,
all you have to do is to write down known products from your
community in the next two columns.
TASK 2.
Write down the products found in your community
in the next two columns. The first two columns are
made for you.
TASK 3.

Directions: After performing all the activities 1& 2 above, answer


the following questions. Write your answer in a piece of paper and discuss
your answers with your classmate.

1. Why is there a need to know the family income of your future


consumers/target markets?
2. Why is it important to know the needs and wants of your
future consumers/target markets?
3. Do you know now what business you want to venture in the
near future?
Concepts of Developing a Product

• Concept development is a critical phase in the


development of a product. In 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.
Figure 3: Concept Development
Identify Customer Needs:

• Using survey forms, 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, life span of the product, etc.). This stage is very
important because this would determine the product to be
produced or provided.
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.
Analyze Competitive Products:

• It is imperative to analyze existing competitive


products to provide important information in
establishing product or services specifications.
Other products may exhibit successful design
attributes that should be emulated or
improved upon in the new product or services.
Generate Product Concepts:

• After having gone through with the previous processes, you


may now develop a number of product concepts to
illustrate what types of product or services are both
technically feasible and would best meet the requirements
of the target specifications.
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.
Refine Product Specifications:

• In this stage, product or services specifications are


refined on the basis of input from the foregoing
activities. Final specification as the results of
extensive study, expected service life, projected
selling price and among others are being considered
in this stage.
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 or services to be offered or
provided.
Plan the Remaining Development Project:

• In this final stage of concept development, you may


prepare a detailed development plan which
includes list of activities, the necessary resources
and expenses, and development schedule with
milestones for tracking progress.
Finding Value

• People buy for a reason. There should be something in


your product or service that would give consumers a good
reason to go back and buy for 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‘re selling. This implies further, that you offer
something to your customers that they will make them
value or treasure your product or service.
Finding Value

• The value that you incorporate to your product is


called value proposition. Value proposition is ―a
believable collection of the most persuasive
reasons people should notice you and take the
action you‘re asking for.‖ Value is created by
fulfilling deep desires and solving deep problems.
This is what gets people moving, what people
getsspending for your product or service.
Innovation

• Innovation is the introduction of something new in your


product or service. 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, improve 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
competitions. 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.
Unique Selling Proposition (USP)

• 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's how to discover your USP and use it to
increase your sales and profit:

• 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 service. Always
remember, you are making this product or providing for the
target customers to eventually increase sales and earn profit
and not making this product or service for you. Essential
question such as what could make them come back again and
ignore competition should be asked to oneself. Most possible
answers may be focused on quality, availability, convenience,
cleanliness, and reliability of the product or service.
Here's how to discover your USP and use it to
increase your sales and profit:

• 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 or service. Make some efforts
to find out, analyze and utilize the information
that motivates the customers in their decisions
to purchase the product or service.
Here's how to discover your USP and use it to
increase your sales and profit:

• Discover the actual and genuine reasons why customers


buy your product instead of a competitor's. Information is
very important in decision making. A competitive
entrepreneur always improve this products or services to
provide satisfaction and of course 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
or service.
Task 3: Interview

• In order to firm up your understanding of the topic


previously presented, you will be tasked to form a
group and conduct an interview with a successful
entrepreneur or practitioner. You have to
document this interview and present this to the
whole class for reflection and appreciation.
Directions: Select a successful entrepreneur or practitioner.
Conduct an interview using the set of questions below. Document
the interview and present this to the class.
• 1. How did you identify your customers?
• 2. What were your considerations in selecting your customers?
• 3. Explain how your product or service becomes unique compared to other
products.
• 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 or
service? 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 or service?
Task 4: Video Viewing

• In order to deepen your understanding of the lesson, perform the following


tasks:
• 1. Browse the internet and view the topics related to:
• a. customers‘ needs and wants
• b. techniques in identifying customers‘ needs and wants
• c. creativity or innovations in products and services
• d. unique selling proposition
• e. product development
• 2. Prepare a short narrative report about the aforementioned topics. You may
highlight the ―aspect‖ that increases your knowledge of product development.
Task 5: Product Conceptualization

• Direction: Using the space and figures below,


develop your own concept for your product or
service. Utilize bullets in every stage of product
conceptualization in listing important key ideas.

You might also like