LESSON TITLE:

ANALYZE THE MARKET NEEDS

Name of Teacher –Writer: GERALDINE M. SABUGO

School: SINAIT NATIONAL HIGH SCHOOL

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 This Self Learning Kit is an innovative material produced by the
Schools Division of Ilocos Sur to meet the standards of the K-12 Curriculum in
providing our teachers and learners relevant and localized content. It focuses
on the different activities that will assess your level in terms of skills and
knowledge that you are expected to do. Go over with the suggested tasks and
accomplish them to develop your knowledge, skills, ability to accomplish your
work on time and build a vision.

At the end of the lesson, you are expected to:

1. Identify the tangible and intangible factors in business
operations
2. Recognize the importance of market needs
3. Prepare a competitor analysis

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 Yesterday, we discussed about the different business
opportunities, on how to screen business ideas, we also
determine the needs and wants of human being and recognize
the importance of SWOT Analysis in putting up a business
establishment. Today, as we go through to our new topic/lesson
you need to go over with this activity.

DIRECTIONS: Fill in the blanks: Complete the statements below by writing your
answer in your notebook.
1. _____________ pertains to the number of people living in the area, their age,
gender, socio-economic status, family size, religion and even growth trends.
2. ______________the laws and policies of the national and local government
units also influence the business operations.
3. ______________ business environment consists of economic, political and
legal, demographic, social, competitive, global, and technological sectors.
Managers must understand how the environment is changing and the impact
of those changes on the business.
4. ______________ are inventions based on the application of science that
create new product or process improvements.
5. ______________ this concerns the physical location of a business store.

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 In this lesson you will learn the different tangible and
intangible factors that affect the business operations. We
will discuss also the market needs, competitor analysis and
marketing analysis.

Business Environment and Market

Before we proceed further to our lesson let us unlock first your vocabulary for
easier understanding. The following are the keywords that you will encounter as we
go through to our lesson.

Before we proceed further to our new lesson let us unlock first your vocabulary for
easier understanding as you go through to our lesson.

 Needs- pertains to the basic needs in life like food, shelter and clothing
 Wants – these are heart desire that you want to others such as
gadgets, car or vehicles.
 Business location- this is the place where they can found your business
venture
 Micro enterprise- is a business operating on a very small scale,
especially one with a sole proprietor and fewer than six employees.
One example is Sari-Sari Store
 Sole proprietor- means individual enterprise or manage by one person
 Resources- pertains to a stock or supply of money, materials, staff, and
other assets that can be drawn on by a person or organization in order
to function effectively.
 Assets- a property owned by a person
 Raw materials- is a basic material that is used to produce goods,
finished products, energy, or intermediate materials that are feedstock
for future finished products.
 Skills- means that a person who is expert in his/her work like
engineers, chef, ICT expert, carpenter and many more.
 Technology- a machinery or equipment commonly used in business
 Tangible factors- in a business location are easily quantifiable (easy to
measure), such as building and gadgets

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  Intangible Factors- it applies to the area of reclamation can be defined
as factors that affect a decision, but that cannot be expressed in
monetary terms. They cannot be touched by anyone.

Examples include employee morale, safety, system reliability, environmental

effects, and politics

 Internal Operations means the management of Devices that are used

to support Licensee's own operations, such as Licensee's payroll,
information technology and bookkeeping operations, and not to support
the operations of a customer of Licensee.
 Tangible factors- Tangible factors in a business location are easily
quantifiable, such as square footage and rent.
 Intangible factors are not quantifiable, such as image.
 Business location- the place where a firm decides to site/put up its
operations.
 Internal business operation- meaning inside the business operation the
strategies being used, marketing plan
 External business operation- pertains to the competitor’s outside the
business
 Barrier- means a fence that prevents movement or access

People who aspire to start a business need to explore conditions prevailing in

an area. Needs and wants of people should be considered as business
opportunities. You need to identify the needs of the community, its resources,
available in raw materials, skills and appropriate technology can help a new
entrepreneur in seizing business opportunity.

The environment plays an important role in determining the type of business

to be put up. Before running a business unit, you need to study first the environment
and market whether it is accessible to everyone, if there are possible customers to
buy your products and if it there are available resources or supplies in the area.

For example, if you’re planning to put up a food business, it is important to

conduct a survey of your probable customers, available supplies and other types of
business in the area. Make sure that your idea of food business is at par or much
better in terms of food offerings compared to the existing food establishments in your
particular locality or community.

The business environment consists of both tangible and intangible factors that
affect either external or internal business operations.

Natural and Physical Environment- This concerns the physical location of a

business’ store. The natural environment also pertains to the natural and man-made
structures that may enhance the beauty of the location.

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Examples are park or a sea front view and living condition

Examples are park, a sea front view, garden

Demography- This pertains to the number of people living in the area, their age,
gender, socio-economic status, family size, religion and even growth trends. These
are invaluable information that can help entrepreneurs in matching their product to
the target market, in deciding for the marketing strategy, pricing and product
packaging among others.

Examples are their lifestyle or the way they live, religion such as Roman Catholic
Iglesia ni Cristo, family size means the number of person living in their home.

Culture- Culture or sub-culture, being the totality of the way of life, ideas and
customs of a set of people or society, primarily influence the types of products that
are acceptable to a particular locality.

For example, we Filipinos are very hospitable when we have visitors, giving their
needs and wants because that is part of our tradition. Another example is Bayanihan.

For example, in our country with a large number or population is bound to

have more demand for baby products.
a. Culture- is the totality of the way of life, ideas and customs of a set of people
or society, primarily influence the types of products that are acceptable to a
particular locality.
For example, we Filipinos are very hospitable in accommodating our visitors
that came from other towns, countries because this is our one way how of
showing respect to others.

A sub-culture also shapes the ‘emotional’ environment of an area. For instance, the
feeling of ‘fear’ for a specific location may serve as a barrier (hindrance) for a
business; a place where one does not feel safe because of the prevalence of crime
will discourage entrepreneurs.

Government Regulations- The laws and policies of the national and local
government units also influence the business operations. Some examples of
policies that directly affect entrepreneurs or business owners are the imposition
(applying) or removal of taxes for products, the establishment of economic zones
and assistance in product labeling and packaging of products.
Before putting up any business see to it that you secured all your needed
requirement. Depending on the location in which your expansion is setting-up,
certain local and regional permits may be necessary to operate in the city or
municipality. Aside from the certificate of registration, your business would also need
to comply with other requirements and must apply for certifications, permits,
licenses, identification numbers from other government agencies and organizations.

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The following are the basic requirements to start commencing your business in the
Philippines:
1. Securities and Exchange Commission /SEC registration
2. DTI registration
3. Mayor’s business permit
4. BIR Registration
5. SSS, PhilHealth, and Pag-Ibig Fund registration

Economy- This pertains to the management of resources and study of the system of
production, distribution, and consumption of goods and services. A country’s
economy influences both the entrepreneurs and consumers as it relates to the
financial matters of business like taxes and interest rates and to the quality of life,
cost of utilities and services, among others.

Technology- Technological changes are inventions based on the application of

science that create new product or process improvements.

Some examples of technological changes are mobile tools that enable online
connection, new business tools for analysis and database, social networks like
Facebook, YouTube, Vlogs, radio and TV and modern, digital equipment.

These advances in technology result to efficiency and productivity at a lesser cost. It

can be observed that sending message through e-mail provides a cheaper and
faster means compared to hand-delivered mails (snail mails). An entrepreneur can
benefit from technological changes by identifying the appropriate technological
solution available in the area or locale.

Analyze the Market Needs

In putting up a business venture determine first on what are your possible

customers, make a market list on the needs and wants of the probable costumers.

Examples of Government Regulations

 Taxes and Financial Regulation
- Internal Revenue Service (IRS) implements the nation's business tax laws.
- Securities and Exchange Commission (SEC) regulates the buying and
selling of stocks and other securities.
 Employee Wage and Hour Rules
- The Department establishes a federal minimum wage and sets rules
regarding pay for overtime work. It is also involved in rule-making on
child labor, family and medical leave, seasonal workers and other areas.
 Workplace Safety
- The Occupational Safety and Health Administration (OSHA) mandates
workplace safety procedures.

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 For instance, Mine Safety and Health Administration, sets standards to
protect miners, who work in one of the nation's most dangerous
industries.
 Discrimination Law

- Anti-discrimination laws identify specific categories of people who are

protected from discrimination in the workplace. Your business cannot
discriminate against these defined categories. That is, you cannot base
your decisions on who to hire or how to advance people within your
organization on the basis of certain features such as race, religion,
gender and sexual preference.

 Environmental Protection

- When it comes to environmental regulation. In addition to major

environmental laws like the Clean Air Act, Clean Water Act, and
Superfund, there are dozens of other statutes that have produced tens of
thousands of pages of federal regulations.

b. Economy- This pertains to the management of resources and study of the

system of production, distribution, and consumption of goods and services.
For example, a country’s economy influences both the entrepreneurs and
consumers as it relates to the financial matters of business like taxes and
interest rates and to the quality of life, cost of utilities and services, among
others.
Technology- Technological changes are inventions based on the application
of science that create new product or process improvements. These
advances in technology result to efficiency and productivity at a lesser cost. It
can be observed that sending message through e-mail provides a cheaper
and faster means compared to hand-delivered mails (snail mails). An
entrepreneur can benefit from technological changes by identifying the
appropriate technological solution available in the area or locale.

Some examples of technological changes are:

-mobile tools that enable online connection
-new business tools for analysis and database
-social networks like Facebook, Instagram, Tweeter, Vlogs, YouTube
-modern, digital equipment like computer, laptop, machine equipment like
welding, grinder etc.

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Analyze the Market
A key part of any successful business is the market analysis. In this lesson
you need to widen and demonstrate both your expertise in your particular market
and the attractiveness of the market.
Marketplace needs is a marketing concept that relates to functional or
emotional needs or desires of a target market.
Functional Needs – if people want a product or service that provides rational
benefits.
Emotional Needs- a provider of entertainment or family activities might
appeal to parents in a specific income group who want to create family
bonding experiences to satisfy emotional needs.
For example, if you have a family reunion you will have a chance to create
more memories together, there will be a bonding or closeness to each other.
Target Marketing- one of the first steps in marketing is to look your target
audience for your products or services and to identify one or more market
segments. Market segment is a smaller group of potential customers with
shared traits, interests, behaviors, usage patterns or lifestyle.
Marketing may be defined as a social and managerial process by which
individuals and groups obtain what they need and want through creating and
exchanging products and value with others.
Other authors would define marketing as the managerial process of
producing, pricing, distributing and promoting products to satisfy the needs,
wants and demands of their respective markets.
The following are two important terms in marketing:
 Needs are states of self-deprivation felt by humans. Needs also stand
for Natural essential elements designed for survival. Examples are
goods, shelter, clothing, money.
 Wants are forms of human needs shaped by culture and individual
personality. These pertain to the preferences of people regarding them
Emotional Needs- a provider of entertainment or family activities might appeal to
parents in a specific income group who want to create family bonding experiences to
satisfy emotional needs.
-For example, you have an event in your family, in that occasion you can developed
family orientation or family bonding.
Target Marketing- is one of the first step you need to do in marketing is to look at
the target audience for your products or services and to identify one or more market
segments. Market segment is a smaller group of potential customers with shared
traits, interests, behaviors, usage patterns or lifestyle.

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-For instance, if you’re planning to create any business venture you want, see to it
that there are possible customers or consumers that will buy your products and
services offered, if they can afford to buy or not based from the lifestyle of your
possible customers.

Market is defined as the sum total of all buyers and sellers in the area or region
under consideration. The area may be the regions, countries and cities. Markets are
simply customers and consumers of a business. Technically, customers are the
buyers of the product while consumers are end users of the product.
Markets are characterized by:
1. Groups of people
2. With money to buy; and
3. Willingness to spend this money they have.
Without these characteristics, target group could not be considered a market.
Products are bundles of attributes and benefits designed to be offered to buyers to
satisfy their needs, wants and demands. Products may be termed goods, if they are
tangible and services if generally intangible.
Product and Services- marketplace needs may include tangible or intangible
needs. A tangible means a customer needs a product that offers tangible benefits.
Tangible product is a product is a physical object that can be perceived by touch
such as a good building, vehicle or gadget.
An intangible needs exist when a customer wants a service that comes with
expertise, time savings or value. Intangible product is a product that can only be
perceived indirectly such as an insurance policy.
Products- are bundles of attributes and benefits designed to be offered to buyers to
satisfy their needs, wants and demands. Products may be termed goods, if they are
tangible and services if generally intangible.
Tangible product is a physical object that can be perceived by touch.
Some example is good building, vehicle or gadget.
Intangible product is a product that can only be perceived indirectly such as an
insurance policy.
Other example is intangible needs, it exists when a customer wants a service that
comes with expertise, time savings or value.
Customer Value is technically defined as the difference between what the customer
gains from the product and what the customer loses from the costs of acquiring such
product.

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Customer satisfaction is the extent to which product tends to meet the
expectations the buyers of a product which they bought to fulfill their need and want.
For example, if your customers buy your products or services and it meet their
expectations meaning to say they are satisfied with your products and services you
offered then later on they will continue to patronizing it, suggest or recommend to
some of your friends to try it also.
Quality originally refers to the product’s freedom from defects. The higher the cost of
the products or services means it is highly durable or it has a high quality.
Exchange is known as the act of obtaining a desired object from someone by
offering something in return. Example of this is the Barter system, exchanging
products/services to others.

Marketing Analysis- determine the sales potential of your products and service, it
attracts customers to your business, and selling to customers and earning repeat
business transactions
Marketing Analysis studies the attractiveness and the dynamics of a special industry.
It is a part of the industry analysis and thus in turn of the global environmental
analysis. Through all of these analyses, the strengths weaknesses, opportunities and
threats (SWOT) of a company can be identified.
How Market Analysis helps:
Quality originally refers to the product’s freedom from defects.
Exchange is known as the act of obtaining a desired object from someone by
offering something in return.
Marketing may be defined as a social and managerial process by which individuals
and groups obtain what they need and want through creating and exchanging
products and value with others. Other authors would define marketing as the
managerial process of producing, pricing, distributing and promoting products to
satisfy the needs, wants and demands of their respective markets.
There are two important terms in marketing and they are the following:
 Needs are states of self-deprivation felt by humans. Needs also stand
for Natural essential elements designed for survival.
Examples: Food, shelter, clothing, money
 Wants are forms of human needs shaped by culture and individual
personality. These pertain to the preferences of people regarding their
survival requirements.
Examples: gadgets, vehicles

Marketing Analysis – is to determine the attractiveness of a market and to

understand its evolving opportunities and threats as they relate to the strength and
weakness of the firm (business). Furthermore, it is use to determine your sales

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potential of your products and services, it attracts your customers to buy and you are
selling your products and services and earning repeat business transactions.
Through all of these analyses, the strengths, weaknesses, opportunities and
threats (SWOT) of a company can be identified. SWOT Analysis is a strategic
planning technique used to help a person or organization identify strengths,
weaknesses, opportunities, and threats related to business competition or project
planning. Finally, with the help of SWOT analysis, adequate business strategies of a
company will be defined.
How Market analysis helps?
A market analysis answers these questions about your customers:
 Who are they?
- determine who your primary customers are and whether these customers
are willing to buy your product or service
 Where are they?
- place where they are located or living.
 What do they need?
- determine their needs and wants
 How do they make their buying decisions?
- ask your possible customers on how do they make plan in buying their
goods.
- How do they budget their money?
 Where do they buy?
- is it in tiangge, mobile vendor, market, grocery store or mall
 How do you reach them with your marketing and sales messages?
Competitor analysis in marketing and strategic management is an assessment of
the strengths and weaknesses of current and potential competitors. This analysis
provides both an offensive and defensive strategic context to identify opportunities
and threats.

Here are the five steps on how to make Competitors analysis?

1. Make a list of your competitors
- List down all your nearby competitors
2. Summarize the products and prices offered by your competitors.
-You make a list of products and services offered by your competitors
3. List each competitor’s strengths and weaknesses
- make a list and compare it to your strengths and weaknesses
- by using of flyers, newspapers, advertisement via television, radio, using
social media like posting your product on Facebook, YouTube, Vlogs.

Competitor analysis - in marketing and strategic management it is an assessment

of the strengths and weaknesses of current and potential competitors. This analysis

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provides both an offensive and defensive strategic context to identify opportunities
and threats. With this evaluation, you can establish what makes your product or
service unique and therefore what attributes you play up in order to attract your
target market.
Here are the steps on how to make a Competitor Analysis:
1. Make a list of your competitors.
2. Summarize the products and prices offered by your competitors.
3. List each competitor’s strengths and weaknesses.
4. Find out the strategies and objectives of your competitors
5. Identify the threats to your business from the competition.
Finally, with the help of SWOT analysis, adequate business strategies of a company
will be defined.

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 For more information and understanding about our topic, I
provide here the additional examples for you. So, see to it
that you’re going to read and analyze them for clearer
understanding.

Here is an example of Internal and external business operations

Natural and Physical Environment Demography

Living Condition Park

Culture Government Regulations

Bayanihan Pagmamano DTI Permit Mayor’s Permit

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Sample Competitors Plan

Competito Pric Locatio Facility Strengt Weaknes Strategy

r e n h s

Standard 80 Excellent Good Excellent Car wash Target a

Car Wash location not easily different
accessible market

Clay Car 65 Fair Good Low Location Target a

wash price different
market

Ray’s 65 Good Fair Low Facility Target a

Wash and price different
Go market

Royal Car 100 Fair Excellen Excellent Location, Offer

Wash t facility high price lower
prices,
better
service,
more
convenien
t location

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 After discussing our lesson, a while back you need to answer
the following activities/ exercises as a measurement of your
understanding the topic. Answer them honestly.

I. Identification. Read and analyze the following statement carefully and

identify what is being asked. Write your answer in your notebook.
1. Pertains to the basic needs in life like food, shelter and clothing
2. These are heart desire that you want to others such as gadgets, car or
vehicles.
3. This is the place where they can found your business venture.
4. It refers to a stock or supply of money, materials, staff, and other assets that
can be drawn on by a person or organization in order to function effectively.
5. A basic material that is used to produce goods, finished products, energy, or
intermediate materials that are feedstock for future finished products.

II. True or False: Read and analyze the following statement carefully, write
True if the statement is correct and write False if the statement is incorrect
and underline the word that makes the statement incorrect. Write your
answer in your notebook.
1. Market is defined as the sum total of all buyers and sellers in the area or
region under consideration.
2. Products are bundles of attributes and benefits designed to be offered to
buyers to satisfy their needs, wants and demands.
3. Culture pertains to the number of people living in the area, their age, gender,
socio-economic status, family size, religion and even growth trends.
4. Technological changes are inventions based on the application of science that
create new product or process improvements.
5. Marketing Analysis is a strategic planning technique used to help a person or
organization identify strengths, weaknesses, opportunities, and threats related
to business competition or project planning.

III. Multiple Choice. Read each question carefully then choose the letter of
your answer. Write your answer in your notebook.

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 1. It is use to determine the attractiveness of a market and to understand its
evolving opportunities and threats as they relate to the strength and weakness
of the firm (business).
a. SWOT Analysis b. Marketing Analysis c. Marketing d. Competitor Analysis
2. It is technically defined as the difference between what the customer gains
from the product and what the customer loses from the costs of acquiring such
product.
a. customer value b. product and services c. intangible product d.
needs,
3. The following are characteristics of market except:
a. Groups of people
b. With money to buy; and
c. Willingness to spend this money they have.
d. Barter
4. In marketing and strategic management it is an assessment of the strengths
and weaknesses of current and potential competitors.
a. barter b. environmental analysis c. competitor analysis d. wants
5. This pertains to the management of resources and study of the system of
production, distribution, and consumption of goods and services.
a. customer satisfaction b. tangible product c. materials d. economy

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I. Fill in the blanks: Read and analyze the statements below. Write your
answer in your notebook.

1. ___________Pertains to the basic needs in life like food, shelter and

clothing.
2. ___________ are heart desire that you want to others such as gadgets,
cars or vehicles.
3. ___________the place where a firm decides to site/put up its operations.
4. ___________pertains to the number of people living in the area, their age,
gender, socio-economic status, family size, religion and even growth trends.
5. ___________ means a fence that prevents movement or access.

II. True or False: Read and analyze the following statement carefully, write
True if the statement is correct and write False if the statement is incorrect
and underline the word that makes the statement incorrect. Write your
answer in your notebook.

1. Exchange is known as the act of obtaining a desired object from someone by

offering something in return.
2. Competitor analysis in marketing and strategic management is an
assessment of the strengths and weaknesses of current and
potential competitors.
3. Culture pertains to the number of people living in the area, their age, gender,
socio-economic status, family size, religion and even growth trends.
4. Customer Value is technically defined as the difference between what the
customer gains from the product.
5. SWOT Analysis determine the sales potential of your products and service, it
attracts customers to your business, and selling to customers and earning
repeat business transactions

III. Multiple Choice. Read each question carefully then choose the letter of
your answer. Write your answer in your notebook.
1. It is use to determine the attractiveness of a market and to understand its
evolving opportunities and threats as they relate to the strength and weakness
of the firm (business).
b. SWOT Analysis b. Marketing Analysis c. Marketing d. Competitor Analysis
2. It is technically defined as the difference between what the customer gains
from the product and what the customer loses from the costs of acquiring such
product.

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b. customer value b. product and services c. intangible product d.
needs

3. The following are characteristics of market except:

a. Groups of people
b. With money to buy
c. Willingness to spend this money they have
d. Barter
4. In marketing and strategic management it is an assessment of the strengths
and weaknesses of current and potential competitors.
a. barter b. environmental analysis c. competitor analysis d. wants
5. This pertains to the management of resources and study of the system of
production, distribution, and consumption of goods and services.
a. customer satisfaction b. tangible product c. materials d. economy

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Demands are simply needs and wants that are backed up by
consumer purchasing power. No matter how strong the need or
want of the market for the product, if they do not have the money to
buy such product, marketers normally will not make the product
available. Markets are simply customers and consumers of a
business. Technically, customers are the buyers of the product
while consumers are end users of the product.
Customer are the people or organization who buy the product or
services companies offer. Before establishing your new enterprise,
you will have to determine who your primary customers are and
whether these customers are willing to buy your product or service.
Understanding people needs and wants will allow you to identify
business opportunities.

Identify your target market and prepare a Competitor Analysis

that you can apply in real life situation especially if you’re
planning to create or put up your own business venture in the
future.
Prepare a Competitor analysis within your nearby area or
locality. See the example for your guide.

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I. Fill in the blanks: Read and analyze the statements below. Write your
answer in your notebook.
I. Fill in the blanks: Complete the statements below by writing your answer in
your notebook.
1. The _____________ of the national and local government units also influence
the business operations.
2. The natural environment also pertains to the_________ and man-made
structures that may enhance the beauty of the location.
3. ______________is a marketing concept that relates to functional or emotional
needs or desires of a target market.
4. _______________is known as the act of obtaining a desired object from
someone by offering something in return.
5. A ______________ also shapes the ‘emotional’ environment of an area.

II. Word Search. Direction: Search the following words inside the table. Draw
a line once you have found the word you’re looking for.

Needs Customers Skills Culture Marketing

III. Essay
Make a short description about your future business (one paragraph with
at least three sentences) and List the skills and experiences you have for
your future business.

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K-12 Learning Module in Cookery 9 pp 10-14

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Review/Motivation
1. Demography
2. Government Regulations
3. External business market
4. Technology
5. Natural & Physical Environment

Exercises/Activities
Identification
1. Needs
2. Wants
3. Business location
4. Demography
5. Barriers

True/False
1. True
2. True
3. False (culture-demography)
4. True
5. False (Marketing Analysis-SWOT Analysis)

Multiple Choice
1. d
2. a
3. d
4. c
5. d

Assessment
I.
1. laws & policies
2. natural
3. marketplace needs
4. customer satisfaction
5. sub-culture

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II.
1. Needs
2. Customers
3. Skills
4. Culture
5. Marketing

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