LEARNING MODULE FOR ENTREPRENEURSHIP

EXPECTATIONS
After going through this module, you are expected to:

1. Identify the product/service to be introduced in the market;

2. Employ SWOT Analysis in analyzing market needs;

LOOKING BACK
As we go further, let us try to recall our lesson about the potential market and
market need.

 A Market is a place where two parties can gather to facilitate the exchange of goods and services.
 A potential market is the part of the market you can capture in the future. It includes the
demographic groups that are not currently your customers but could become customers in the
future (Lake, L, 2019).
 The size of a potential market helps a company understand the level of investment it should
make further in the market, while taking into consideration other factors.
 The market now demands that your business align to their needs. In order to properly align your
marketing efforts ‒ and your content, in particular ‒ to what buyers need, you have to have a clear
understanding of the many intricacies, pains and pressures within your market.

WHAT I KNOW
DIAGNOTIC ASSESSMENT
Directions: Read each item very carefully and write your answer on a separate sheet of paper.

1. Which of the following reasons could be the best option why we need to recognize a potential
market?
a. To earn money b. To established business name in the market
c. To satisfy the on-going needs of an individual
d. To attract more demand from the market
2. This new product service helps an entrepreneur suggest and market new product.
a. The consumer b. Distribution channels
c. The establish products and services in the market
d. Research and Development
3. Which of the following is a very good way for generating and screening ideas and concepts?
a. Problem Inventory System c. Focus Group Discussion
b. Brainstorming d. Case study analysis
4. Which of the following tools an entrepreneur can use to help him decide what most suitable
business idea he could introduce in the market?
a. PESTLE c. SWOT Analysis
b. Environmental Scanning d. Product Survey
5. Which of the following combination may be creating a big advantage for your proposed
business?
a. Strengths and Opportunities c. Weaknesses and Threats
b. Strengths and Weaknesses d. Weaknesses and Opportunities
6. “I love the business. This is my passion. I love doing it every day”. The statement is an example
of?
a. Strengths c. Opportunities

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b. Weaknesses d. Threats
7. “The business is easily copied. I might lose my market share. The statement is an example of?
a. Strengths c. Opportunities
b. Weaknesses d. Threats
8. “The number of people who wants to have a car is continuously increasing. The statement is an
example of?
a. Strengths c. Opportunities
b. Weaknesses d. Threats
9. This is a specific group of people you want to reach with your marketing message.
a. A marketer c. An Entrepreneur
b. A target market d. An Investor
10. Which of the following talks about the questions that need to be evaluated such as: how often
do you buy this product; how much do you buy the product; etc.?
a. Market value c. Market potential
b. Market share d. Market size

WHATS IN
A continuation of Lesson 4………
RECOGNIZE A POTENTIAL MARKET

Recognizing a potential market just like identifying business opportunities is a central

and key point to begin your business venture. In some thought, this is an entrepreneurial
opportunity that is a favorable set of conditions that will enable the entrepreneur to create new
products/services by combining resources not only for profit but for the corporate social
responsibility for individuals and community.

In this portion, you may be able to do survey to understand market needs. This will be properly
conducted to know what customers’ prefer to buy and before an entrepreneur operate a business.

Always keep in mind that getting the type of information in advance is very crucial in the success
of the new product/service to offer in the market.

New Product/Services Idea Generation New Product Sources

1. The Consumer
✓ Understand the needs and wants of the people who are going to patronize the product.
Submit potential ideas in accordance to the needs of the consumer.
2. The established Products and Services in the Market
✓ Also, monitoring the existing products and services in the market place could help your
product idea generation become even more credible in what product/service to offer in
the market.
3. The Distribution Channels
✓ It will help you suggest and market new product
4. The Government (Government Regulations)
✓ Records from the Patent office can give you idea what to offer in the market 5. Research
and Development
✓ Research for a particular product/service (feasibility study is highly recommended) it will
help you understand the needs of the market.

Ways of Generating New Product/Service

1. Focus Group Discussion

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This is a very good way for generating and screening ideas and concepts. It will teach
entrepreneur to be more creative in developing what product/service to offer.
2. Brainstorming
If the entrepreneurs have an area where he/she can focus on, the effective development
of idea can occur. This is through the help of brainstorming.
3. Problem Inventory Analysis
It’s a kind of researching product/service that has weak points in the market. Identifying
those products/services will lead you to business opportunity. SWOT Analysis Tool

SWOT Analysis Tool

A tool that entrepreneurs can use to help them decide what is the most suitable business idea
they could introduce in the market is SWOT Analysis. It will also help them to focus on the possible
problem that arises in the particular product/service and the potential advantages of each ideas.

SWOT Analysis stands for:

Internal Factors
 Strengths- are the specific positive aspects which will give your proposed business an
advantage over similar business ventures and the competitors.
 Weaknesses- are the things that your business will not do as well as other businesses.
External Factors
 Opportunities- are on-going potential developments that will be good for your business.
 Threats- are events that may negatively affect your business.

If you already identified your SWOT, try matching your strengths and opportunities to
ascertain whether or not they will give your business an advantage.
For example:
Costumers are looking for a service that matches your proposed product/service (that’s
opportunity) and you are very service oriented and care about details (that’s strength), you may
be creating a big advantage for your proposed business.
Weaknesses and Threats can also be matched to determine if you can improve your weak
points to cope with the threats.

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Sample data using SWOT Analysis in a particular business:

SWOT ANALYSIS
BUINESS IDEA: Car Wash Business
Strengths Weaknesses
• I have some work experience in car wash • I do not have an available spot for the
business business
• I love seeing different car • I do not have many source of materials
• I enjoy meeting people needed in the business
• I am good in car washing • I have no experience managing staff
Opportunities Threats
• There is no other car wash business shop in • The business is easily copied I might lose my
the town market share
• Other shop are expensive • The cost of renting the shop space is high
• People in the community has a car for daily
transportation
• Number of people who wants to have a car
are continuously increasing

Target Market Identification

The very big question an entrepreneur needs to answer is to whom he will be able to sell
his product/service? Every business cannot succeed without a customer. Therefore, it is very
important to know who your customer will be.
A target market is the specific group of people you want to reach with your marketing
message. They are the people who are most likely to buy your products or services, and they are
united by some common characteristics, like demographics and behaviors.
([Link]
A marketer is one who is responsible in defining the target market. It’s the foundation of
all elements of your marketing strategy, starting from how you develop and name your products
or services right through to the marketing channels you use to promote them.

MARKET RESEARCH
Entrepreneur, know thy market well ! This simple reminder must keep the
entrepreneur alert all the time. The entrepreneur should exert all efforts to know the market he or
she wants to exploit. The more you know about your market, the better you will be able to
determine customer needs and wants. You will be able to reach them whenever they are. This can
be possible through conducting a good market research.

MARKET RESEARCH METHODOLOGIES

In order to aid the entrepreneur in gathering relevant market information, there are several
market research methodologies using scientific approaches that can be employed.
SALES DATA MINING- the data can logically be arranged, it can be further grouped into intervals
of two, three or four hours.

FREQUENCY DISTRIBUTION. This table organizes data into groups of values according to the
most logical characteristics. In market research, there are three commonly USED GRAPHS:

 HISTOGRAM or BAR GRAPH consist of series of rectangles or “bars’” Each bar is

proportional in width to the range of values within a class proportional in height to the
number of items falling in a class.
 FREQUENCY POLYGON is constructed by marking the frequencies on the vertical axis
with a dot corresponding to the values on the horizontal axis. These dots are then
connected with a straight line to form a polygon.

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 PIE CHART is a circular graph divided into sections that represent the relative frequencies
or magnitudes of the grouped values.

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.

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. One has to
simple observe people as they go about their usual activity such as buying and using products
and services and assess how they behave.

SURVEY RESEARCH 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 motivations, and their behaviour. It can be conducted via telephone, personal, and mail
interview. The most popular is the USAGE, ATTITUDE, and IMAGE (UIA) survey which is
intended to derive market awareness, market size and share, product usage and preference,
customer interest, and customer image.

In planning a survey, there are THREE IMPORTANT CONCERNS that one has to look into:
 SAMPLING TECHNIQUE are classified into PROBABILITY and NON-PROBABILITY
SAMPLING.
A. PROBABILITY SAMPLING is where the respondents are randomly selected from a
population such as in the lottery ticket.
B. NON-PROBABILITY SAMPLING refers to the technique that is resorted to “when it is
difficult to estimate the population of the study because they are mobile or transitory in a
given location.”

 GETTING THE SAMPLE SIZE. There are THREE BASIC SAMPLE SIZE DETERMINANTS:
1. DATA VARIABILITY OF A PROPORTION- dispersion of the data or how widely
spread the data is from central point.
2. CONFIDENCE LEVEL IN THE ESTIMATION PROCESS- the higher the confidence
level desired, the bigger the sample size needed; the current industry standard has
95% confidence level.
3. ERROR IN THE RESULT OF THE ESTIMATION PROCESS- the less error margin
desired, the bigger is the required sample size; it is expressed as plus or minus (-
/+)a certain percentage.

 DESIGNING THE QUESTIONNAIRE. There are some basic rules that have to be followed
in question formulation. These are:
 The questions, in their totality, should be able to elicit all the necessary information
required in the research.
 Each question should be clear and definite.
 Each question should cover one topic at a time.
 Each question should be presented in a neutral manner.
 Each question should be translated into the dialect that the target respondents are
familiar with.

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CUSTOMER PROFILING
When the entrepreneur starts doing the market research s/he is also beginning to
understand his customers and therefore, profiling them. Customer knowledge starts with good
customer profiling.

METHODS OF CUSTOMER PROFILING

1. DEMOGRAPHICS. In demographic classification, we categorize customers into the following:
1. Age
2. Income classes
3. Social classes/Reference groups
4. Ethnic backgrounds
5. Religious beliefs
6. Occupations
7. Domiciles

INCOME LEVELS determine the purchasing power of customers. Usually the customers
are classified according to the following income classes:
1. Class A , the high income class
2. Class B, the upper middle income class
3. Class C, the middle income class
4. Class D, the lower middle income class
5. Class E, the low income class
ETHNIC BACKGROUNDS and RELIGIOUS BELIEFS affect the cultural beliefs of people
such as the food they eat, how they save and how they spend, and their levels of
conservation or progressiveness.
SOCIAL CLASSES and REFERENCE GROUPS often dictate what acceptable or
unacceptable behaviour is. These classes or groups often include family, friends,
neighbours, fellow workers and societal affiliations.
OCCUPATIONS such as those of factory foremen, doctors, taxi drivers, nurses and teachers
also determines what kinds of goods and services these people would buy.
DOMICILES or HABITATS or areas of residence and environmental surroundings,
oftentimes, define and limit the choices to available customers
2. PSYCHOGRAPHICS defines the customer’s motivations, perceptions, preferences, and lifestyle.
MOTIVATION goes to the roots and wants. This can be classified into physiological and
psychological needs and wants.
PERCEPTION is the way a person chooses to receive or interpret information from the
external world. While motivation provides the drive for action, perception defines exactly
what the person will do.
3. TECHNOGRAPHICS classifies people according to their level of expertise in using a product
/service. For example:
 Sports beginner might just want basic equipment
 Sports regular may be looking for more sophisticated equipment
 Sports professionals would want the best for competitive purposes.

MARKET SEGMENTATION
Customer with similar needs and wants and similar willingness and ability to pay can be
grouped into one customer segment. Within this customer segment, we can have finer cuts. We
can have different customer sub-segments. Within these sub-segments we can have finer and
finer cuts. Therefore, we can produce products and services that are highly specialized for any
type of consumer segment.

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MARKET AGGREGATION
Some entrepreneurs prefer to appeal to broader market if possible. They want market
aggregation rather than market segmentation. They prefer to deal in commodities like rice, bread,
and water that appeal to market aggregates rather than market segments.

MARKET MAPPING
Similar to sales data mining, market mapping refers to grouping customers and products
to certain market variables. It is a combination of demographic, psychographic and technographic
to create a market map.

Sample:
Table 3.1 MAP 1- STUDENTS MARKET MAP
SCHOOL AGE HOUSEHOLD INCOME BRACKET
STAGE LOW LOWER MIDDLE UPPER HIGH
MIDDLE MIDDLE
POST - 22-UP
TERTIARY
TERTIARY 17-21
SECONDARY 13-16
ELEMENTARY 6-12
PRE-SCHOOL 2-5

HIGH TUITION

SCHOOL Z SCHOOL Y

LOW DIFFICULTY HIGHDIFFICULTY

SCHOOL
SCHOOL U
V

LOW TUITION
Figure 3.2 MAP 2- SCHOOL POSTIONING

Market Size (To recognize a potential market for a particular product)

Every entrepreneur need to understand the different sets of questions when assessing or
recognizing a potential market for a particular product. It is needed to picture out the size of the
market for a particular type of product/service and the value of the market (the amount of money
spent on that product each month or year).
It is also possible to collect data and information about the types of people who buy a
particular product/service and where they buy it. (May help also, the entrepreneur to identify his
target market)
The information gathered from potential consumers can be analyzed by the entrepreneur
to get a good idea of the quality characteristics of the product that consumers prefer, the total
demand for the product/service and the total value of the market.
This involves making a number of assumptions and it is important to consider the
following:
1. Are the people interviewed really representative of all potential consumers?
2. Was the number of people interviewed enough?
3. Were people giving accurate information?

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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

Sample questionnaire about market size and value

Questions Answers
About the market size:
1. How often do you buy this product? ____Daily ____Weekly _____Monthly
2. Do you buy different amounts at different
times of the year? ______ Yes ________ No

3. When are the times that you buy the most?

4. How much do you buy each time? _________ Pc
5. When are the times you buy the least? P______ per ______ Pc
6. What is the amount of food in the pack?
About the market value:
7. How much do you pay for a pack of food? P
8. What is the price difference for larger or
smaller packs? P

9. Does the price change at different times of

the year? ________ Yes _________ No

10. When is the price highest?

11. When is the price lowest?

About the customer:

12. Would you say that you have a low, medium or high income in your household?
______ Low ______Medium ________ High
13. To which age group do you belong? (Check only one)
1-20
21-40
41-60
Gender ______ Male _______

About Sales outlets:

14. Where do you usually buy this food: (check one only)
Food store
Local shop
Kiosk
Supermarket
Others Specify:____________

Sample questionnaire for a new product (Tomato Jam)

Questions Answers
1. Do you eat other types of jam? _____ Yes ______ No
2. Which types of jam do you like best? List the types
3. Do you think you would like tomato ____ Yes _______ No _______ Not sure
jam?
1 2 3 4 5

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Very Good Average Bad Very

Good Bad
4. What do you think of the color of this
tomato jam?
5. Do you like having the seeds in the
jam?
6. What do you think about the flavor
of this jam?
7. Do you like the texture of the jam?
8. What do you think about the jar?
9. What do you think about the label?
10. What else do you like about this
jam? 1
11. I there anything that I can do to
improve this jam?

WHAT’S MORE
Activity 13: Let’s identify your product/service
Directions: Think of a product/service you want to introduce in the market by
accomplishing the new product/service template below:
NEW PRODUCT/SERVICE TEMPLATE
A. What is my product/service?
B. What does my product/service do?
C. How is it different or better than other
products/services?
D. How did you come up with the product idea
generation?
E. What is the reason/s in choosing the
product/service to offer in the market?
F. Who will buy the product/service?
G. Why will they buy the product/service?
H. How will the product/service be promoted
and sold/offered?
I. Who are my competitors?
J. Describe the product/service

Rubrics (to be use in grading activity 13)

Points Remarks Description
5 Excellent Extremely developed the content and learners demonstrate
complete understanding of what should be done.
4 Very Good The work is of high quality and is presented very well
3 Good The work is developed satisfactorily and the learners
complied with basic requirements of what should be done
and the idea is acceptable.
2 Fair The work is below acceptable average and the concept of
work done is confused or vague
1 Poor Almost none of the basic requirements done properly. The
writing is disorganized and very difficult to understand.

Activity 13: Let’s do SWOT Analysis

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Directions: Prepare a SWOT Analysis of the product you wanted to introduce in the market. Also,
prepare a SWOT analysis for the competitors for the comparison. Use the template below.

My proposed Competitor A Competitor B

Product/Service
STRENGTHS

WEAKNESSES

OPPORTUNITES

THREATS

Score
Descriptions 5 3 1
Identifying Strengths Listed strengths are Satisfactorily Presented the subject
extremely well stated. identified the in a poor ways and
Comparison is well strengths and not well delivered
presented comparison is fairly
presented
Identifying Listed weaknesses are Satisfactorily Presented the subject
weaknesses extremely well stated. identified the in a poor ways and
Comparison is well Weaknesses and not well delivered
presented comparison is fairly
presented
Identifying Listed Opportunities Satisfactorily Presented the subject
Opportunities is extremely well identified the in a poor ways and
stated. Comparison is Opportunities and not well delivered
well presented comparison is fairly
presented
Identifying Threats Listed Threats is Satisfactorily Presented the subject
extremely well stated. identified the Threats in a poor ways and
Comparison is well and comparison is not well delivered
presented fairly presented

Activity 14: Let’s Recognize a Potential Market

Directions: Prepare a survey questionnaire for the following concerned topics:

✓ About the market size

✓ About the market value
✓ About the customer
✓ About the sales outlet
✓ About the new product/service you wanted to offer in the market (refer to activity 2)

For your reference, use the sample survey questionnaires written above in this module.
Required:
You may post your completed survey questionnaire on your social media account and
collect or find at least 20 respondents to answer the questions.

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Rubrics (to be use in grading activity 4)

Weight
5 4 3 2 1
The learners provided a well-developed survey
questionnaires about the market size
The learners provided a well-developed survey
questionnaires about the market value
The learners provided a well-developed survey
questionnaires about the customers
The learners provided a well-developed survey
questionnaires about the sales outlet
The learners provided a well-developed survey
questionnaires about the new product/service

Activity 15: Let’s put them together!

Let us reinforce the skills/knowledge that you have gained from this lesson by doing the next
activity.

Gather, arrange and evaluate the answer/s you completed from the previous activities on this
module and use them to finish this activity. Put your answer/s on the Business Idea Analysis form
below:
Business Ideas Analysis Form
Name of Business:
Product or Service Sold:
Main Customers:
When and why did the owner decide to start this business?
___________________________________________________________________________________
___________________________________________________________________________________

Why did the owner think it was a good idea to start that kind of business?
___________________________________________________________________________________
___________________________________________________________________________________

How did the owner learn what his potential customers wanted?
___________________________________________________________________________________
___________________________________________________________________________________

What problems did the owner encounter in setting up the business?

___________________________________________________________________________________
___________________________________________________________________________________

What is the impact of the business on the natural environment and the community?
__________________________________________________________________________________
__________________________________________________________________________________

Rubrics (to be use in grading activity 15)

Points Remarks Descriptions
5 Excellent Extremely developed the content and learners demonstrate
complete understanding of what should be done.
4 Very good The work is of high quality and is presented very well.

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3 Good The work is developed satisfactorily and the learners complied with
basic requirements of what should be done and the idea is
acceptable.
2 Fair The work is below acceptable average and the concept of work done
is confused or vague.
1 Poor Almost none of the basic requirements done properly. The writing is
disorganized and very difficult to understand.

What I Have Learned

At this point, we will see how much you understand from the lesson discussed and
the activities you have done.

Activity 16: Fill in the Blanks

Directions: Read each item very carefully and complete the sentences below by filling in the blanks
the correct word.
1. Recognizing a potential market is a___________________ and __________________ to begin your
business venture.
2. There are five (5) new product sources namely;
____________;______________;________________;________________; and _____________.
3. _________________ will teach entrepreneur to be more creative in developing what product/service
to offer.
4. If the entrepreneur have an area where he/she can focus on, the effective development of idea
can occur, this are what we called____________________.
5. A tool that an entrepreneur can use to help them decide what is the most suitable business idea
they could introduce in the market is __________________.
6. SWOT stands for; S__________;W____________;O_____________T__________.
7.______________ are the specific positive aspects which will give your proposed business an
advantage over similar business ventures and the competitors.
8. ______________ are on-going potential developments that will be good for your business.
9. _____________are the things that your business will not do as well as other business.
10._____________are events that may negatively affect your business.

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