12

TECHNOLOGY AND LIVELIHOOD EDUCATION

HANDICRAFT
QUARTER 2
Week 8 - Lesson 15

CapSLET
Capsulized Self - Learning
Empowerment
Toolkit
Schools Division Office of Zamboanga City
Region IX, Zamboanga Peninsula
Zamboanga City
 CapSLET
Capsulized Self - Learning Empowerment Toolkit
SUBJECT &
GRADE/LEVEL
HANDICRAFT 12 QUARTER 2 WEEK 8
Identify what is of “value” to the customer and what makes a product unique and
TOPIC
competitive
LEARNING CODE
COMPETENCY Develop a product/ service in Handicraft
TLE_EM9-12-00- 1
a. describe what is product development and it’s stages;
b. explain what makes a product unique and competitive; and
LEARNING
OBJECTIVES c. apply creativity and innovative techniques to develop marketable
product.

IMPORTANT: Do not write anything on this material. Write your answers on the learner’s activity and
assessment sheets provided separately.

UNDERSTAND
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.

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.

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.

Basic needs are essential to an individual to live with dignity and pride in a community. These needs can
obviously help you generate business ideas and subsequently to product development.

Wants are desires, luxury and extravagance that signify wealth and expensive way of living. Wants or desires
are considered above all the basic necessities of life. Some examples of wants or desires: fashion accessories,
expensive shoes and clothes, travelling around the world, eating in an expensive restaurant; watching movies,
concerts, having luxurious cars, wearing expensive jewelries, perfume, living in impressive homes, among
others.

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

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.

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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.

The process of product development follows the

following steps:
A. 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.

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 or services specifications. Other products may exhibit successful design
attributes that should be emulated or improved upon in the new product or services.

D. 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.

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 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.

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 or services to be offered or provided.

H. 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.

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. 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:

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 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.

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.

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.

SAQ-1: What benefits will the customer expect from your products? How will your product
differ from other competitors?

SAQ-2 : Explain how your product or service become unique compared to other products?

Let’s Practice!
(Answer on the Answer Sheet provided for Activity and Assessment.)
Direction: Complete the crossword by filling in a word that fits each clue

Key Points
REMEMBER


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.

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
gets spending for your product or service.
Market is one of the many varieties of systems, institutions, procedures, social
relations and infrastructures whereby parties engage in exchange.

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 TRY
(Answer on the Answer Sheet provided for Activity and Assessment.)
Directions: Choose the letter of the best answer. Write your answer on the space provided for.

1. This is generated by examining the goods and services sold in the community.
A. business creation B. business concept C. business pricing D. business idea
2. A process of making a new product to be sold to the customers. Product
A. Analysis B. Development C. Conceptualization D. Implementation
3. These are luxuries, advantages, and desires that every individual considers beyond necessity.
A. wants B. requirements C. 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 B. unique pricing policy C. 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 B. project development C. economic analysis D. refine specification
6. This is the introduction of new ideas to make the product and services more attractive and saleable
to the target customers.
A. new idea B. product development C. creativity D. innovation
7. A marketing practice of creating name, symbol or design that identifies and differentiate a product
from the other products.
A. product naming B. branding C. unique selling proposition D. tagline
8. Among the given 4 concepts, arrange in order. Write the letter
A. Establish Target Specifications C. Select a Product Concept
B. Refine Product Specifications D. Perform Economic Analysis
9. Shelter, food, and education are examples of
A. Wants b. Needs
10. is very important in decision making.
A. Market B. Money C. Information D. Customers

REFERENCE/S K to 12, Learning Module Handicraft 10

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Written by:

MA. MAGDALENA M. DEPOSITARIO

Teacher III
Don Pablo Lorenzo Memorial High School

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