SEMI-DETAILED LESSON PLAN IN ST5

INNOVATION AND ENTREPRENEURSHIP

Pre-service Teachers:

Amogues, Carl Vincent

Asis, Jefferson
Anover, John Cyril
Bacasnot, Danryan
Bagtong, Christine Jane
Banggalan, Eariol Jhon
Bayana, Kenny Jay
Butlig, Khent Bryan

Section and Schedule: I1 & TF (07:30AM-09:00AM)

I. OBJECTIVES

By the end of this lesson, learners will be able to:

a. Explain the concepts of market, customers, market analysis, competitor analysis,

and effective differentiation strategies to enhance business competitiveness.
b. Demonstrate deep appreciation to the role of analyzing customer needs in creating a
well-informed and customer-centered business proposal.
c. Develop a comprehensive diagram on the techniques for identifying market
opportunities and differentiation strategies.

II. SUBJECT UNIT 2: IDENTIFYING MARKET NEEDS AND

MATTER OPPORTUNITIES

III. INSTRUCTIONAL MATERIALS

A. References Free Press. U.S. Small Business Administration. (n.d.). Market
research and competitive analysis. Retrieved from
https://www.sba.gov/business-guide/plan-your-business/marke
t-research-competitive-analysis

References Kotler, P., & Keller, K. L. (2015). Marketing management

(15th ed.). Pearson. McDonald, M., & Wilson, H. (2016). Marketing
plans: How to prepare them, how to use them (8th ed.). Wiley.
Porter, M. E. (1985). Competitive advantage: Creating and
sustaining superior performance.

B. Materials
Television, PowerPoint presentation, papers, tapes

IV. PROCEDURE
Preliminaries: Prayer, Attendance Checking, Review
ACTIVITY FAMILY FEUD
  The class will be grouped into two families.
 Each family will select 5 players to represent.
 The game consists of one round featuring a survey question.
 A Face-Off begins with one player from each team answering
the question first.
 The team with the highest-ranking answer decides whether to
play or pass the round.
 The playing team takes turns guessing the remaining answers.
Each correct answer earns points based on survey rankings.
 Three incorrect answers (strikes) allow the other team a
chance to steal by guessing one remaining answer.

Family Feud Question:

What factors influence customer buying decisions?

Points:

 Price (75 points)

 Quality of Product/Service (70 points)
 Brand Reputation (65 points)
 Customer Reviews (60 points)
 Advertising & Marketing (55 points)
 Convenience (50 points)
 Personal Needs & Preferences (45 points)

ANALYSIS 1. Which factor from the game do you think has the biggest
impact on customer decisions? Why?
2. How do businesses use these factors to create successful
marketing strategies?
3. Why understanding customer needs and preferences
important in developing new products or services?

ABSTRACTION

UNIT 2: IDENTIFYING MARKET NEEDS AND

OPPORTUNITIES
Market needs and opportunities refer to gaps in the market where
businesses can introduce new products, services, or improvements
to existing offerings. Understanding these aspects helps businesses
stay competitive, profitable, and relevant (Kotler & Keller, 2015).

DEFINING THE MARKET AND CUSTOMER

MARKET
A market is any place or venue where buyers and sellers can
exchange goods and services. Markets can be physical, like a retail
outlet, or virtual, like an e-retailer. Other examples include illegal
markets, auction markets, and financial markets. The prices of goods
and services in a market are determined by supply and demand.
Features of a market include the availability of an arena, buyers
and sellers, and commodities.

 Arena: This is the platform where transactions are conducted

between buyers and sellers. Keep in mind that this doesn't
 necessarily mean a physical location.
 Buyers and Sellers: For the market to function, there must
be buyers and sellers. The market can't exist if someone isn't
buying something that someone else is selling. These entities
can be businesses, individuals, or even governments, and they
can execute their transactions physically or virtually, thanks
to the internet.
 One Commodity: A single market depends on a single
commodity, so a related commodity must be present for a
market to operate. For instance, wheat is the commodity
bought and sold in the wheat market. Electronics make up the
electronics market en masse but can be broken down into
subcategories.

Classification: Physical and Virtual Markets

 Markets may be represented by physical locations where
transactions are made. These include retail stores and similar
businesses that sell individual items to wholesale markets
selling goods to distributors. Examples: SM Mall, Gaisano
Mall, Sari-sari store

 Internet-based stores and auction sites such as Amazon and

eBay are examples of markets where transactions can occur
entirely online, and the parties involved never physically
connect. Examples: Amazon, eBay, Lazada, Shopee, Temu,
Facebook Marketplace

Supply and Demand

Whatever the context, a market establishes the prices for goods and
other services. These rates are determined by supply and demand.
The idea of supply and demand is one of the very basics of
economics. The sellers create products to supply, while buyers
generate demand.

How markets work:

Every trade needs at least two parties, a buyer and a seller. In some
cases, a third party is required to introduce competition and balance
the market. As such, a market in a state of perfect competition,
among other things, is characterized by a high number of active
buyers and sellers.

A market transaction may include goods, services, information,

currency, or any combination that passes from one party to another.
In short, markets are any setting where buyers and sellers can
gather and interact—even those that don't involve legal tender.

Types of Market:

Regulating Markets
Most markets are subject to rules and regulations set by the
government or a governing body that determines the market’s
nature. This may be the case when the regulation is as wide-
reaching and as widely recognized as an international trade
agreement or as local and temporary as a pop-up street market
where vendors maintain order and rules among themselves. In short,
these markets are the legal forms of market we enjoy today.

Underground Market
An underground or black market refers to an illegal market where
transactions occur without the knowledge of the government or
other regulatory agencies. Many illegal markets exist to circumvent
existing tax laws. This is why many involve cash-only transactions or
non-traceable forms of currency, making them harder to track.

Auction Market
An auction market brings many people together for the sale and
purchase of specific lots of goods. The buyers or bidders try to top
each other for the purchase price. The items for sale go to the
highest bidder.

Financial Market
The blanket term "financial market" refers to any place where
securities – stock, equity, and debt, currencies, and bonds are traded
between two parties. These markets are the basis of capitalist
societies, providing capital formation and liquidity for businesses.

https://www.investopedia.com/terms/m/market.asp

CUSTOMER

A customer is an individual or business that purchases another

company's goods or services. Customers are important because they
drive revenues. Businesses can neither survive nor thrive without
them.

All businesses compete with other companies to attract customers

either by aggressively advertising their products, lowering prices to
expand their customer bases, or developing unique products and
experiences that customers love. Think Apple, Tesla, and Google.

Category: Internal or External Customers

 Internal customers are individuals or businesses integrated
into business operations. They often exist as employees or
other functional groups within the company. They do not
purchase the company’s products or services but depend on
cooperation and efficiency within the organization. Example:
o Employees who depend on HR for payroll processing
o A sales team relying on the marketing team for
promotional materials
o A teacher relying on the school administration for
resources

 External customers are dissociated from business

operations and are often the parties who are interested in
purchasing the final goods and services produced by a
company. Example:
o Shoppers buying from a store
o Clients using a company's software service

Customer vs. Consumer

The terms "customer" and "consumer" are nearly synonymous and
are often used interchangeably but there's a slight difference.

 Customers are the purchasers who buy goods and services

but may not necessarily use it. Example:
o A parent who buys a toy for their child is the customer,
 but the child is the one who will use it.
o A school administrator purchasing textbooks for
students is the customer, but the students will use
them.

 Consumers are defined as individuals or businesses that

consume or use goods and services. They are the end-user of
a product or service. Example:
o A child who plays with the toy is the consumer because
they are the one using it.
o A student who reads a textbook in class is the
consumer, while the school that purchased it is the
customer.

https://www.investopedia.com/terms/c/customer.asp

UNDERSTANDING CUSTOMER NEEDS

Customer Needs
Customer needs are the desires, expectations, and requirements of
customers in relation to a particular product, service, or brand. They
are the basic requirements that a customer seeks from a product or
service to fulfill their particular needs, preferences, and
expectations. A customer need is a factor that motivates a customer
to purchase a product or service.

Category: Stated and Latent Needs

 Stated needs - clearly stated requirements, which customers

can articulate through discussion (e.g., "I need a smartphone
with long battery life.")
 Latent needs: which are unspoken, and customers may not
even realize they have (e.g., before smartphones, people
didn’t know they needed mobile apps) (Porter, 1985) or a
good after-sales service.

https://blog.ams-insights.com/types-of-customer-needs

Types of Customer Needs:

 Functional needs are related to the performance, features,

and benefits of a product or service. For example, a customer
may need a car with good fuel efficiency, ample storage space,
and advanced safety features to fulfill their transportation
needs.

 Emotional needs are related to the feelings, experiences,

and perceptions that a customer has towards a product or
service. For example, a customer may want to buy a luxury
watch not just because it tells time but because it makes them
feel prestigious and successful.

 Social needs are related to the influence of others in the

customer's decision-making process, such as family, friends,
or peers. For example, a customer may choose to dine at a
particular restaurant because it is a popular spot among their
group of friends or because it has a positive reputation in the
local community.
https://www.bluestonepim.com/glossary/customer-needs

WAYS TO IDENTIFY CUSTOMER NEEDS

There are a number of ways to learn about your customers’ needs.

Whether you have an existing product or service you’d like to
improve, or you’re looking for a new, innovative idea, you can gather
valuable insights from several sources, including:

 Yourself
 Current customers
 Non-customers
 Former customers
 Compensating behaviors, or inconvenient alternatives used
when no product fulfills the job to be done well

Here are three ways to develop an understanding of your customers’

needs so you can better serve them with your products and services:
1. Reflect on Your Experiences
The first method for identifying jobs to be done is to reflect on your
own behaviors and experiences, identifying patterns in your
decision-making process. You yourself are a customer and, in the
absence of other data sources, self-reflection can be a helpful
starting point.

For example, if you’re working to improve an existing product

offering, think back to the last time you purchased a similar item.
Ask yourself:

 What motivated me to make the purchase?

 What other options were available to me?
 Why did I choose this product over the other options
available?
 What goal did the product help me achieve?
It can be easy to make assumptions about why you behaved a certain
way, so critically think about the factors that influenced your
decision.

2. Observe Behaviors
In addition to reflecting on your own experiences, you should
observe the behaviors of those around you.

If possible, look for opportunities to observe people at each stage of

the buying process—from the time the need arises to the final
decision. Observe how people use the product or service to
understand what goals it helps them achieve or challenges it helps
them avoid.

Look out for compensating behaviors, or actions people take when a

product or service doesn’t exist to fulfill their needs. Understanding
the job to be done at the core of inconvenient alternatives can help
you identify an underserved need in the market and inspire ideas to
satisfy it.

3. Conduct Interviews
To learn more about the decision-making process and build on your
observations, interview current, former, and non-customers.
Your current customers can explain why they chose to purchase
from your company, rather than a competitor. Former customers can
share insights into why they no longer use your company’s products
or services, potentially highlighting opportunities for improvement.
Similarly, non-customers can shed light on why they didn’t need a
particular product or service, or why they chose to purchase from a
competitor.

A one-on-one interview can enable you to explore the buyer’s

decision-making process from start to finish. Ask pointed questions
to uncover what led them to your offering, such as:

 Tell me about the first time you thought about buying a ____?
 What challenge were you trying to solve when you bought
____?
 When was the first time you thought, “I need to find a new
solution?”
 What other options did you consider when you made your
decision?
 What made you choose ____ over other options?

Use these questions as a starting point. As the conversation

continues, ask more questions to further explore the customer’s
motivations and the job they hired your product or service to fulfill.

https://online.hbs.edu/blog/post/methods-for-identifying-customer-
needs

MARKET TRENDS AND HOW THEY AFFECT CUSTOMERS

Market Trends
Market trends are movements in the market that are new or
different reactions, which eventually lead to change, either in a
negative or positive way for business. Businesses can anticipate and
analyze market trends to improve their practices, attract the right
target audience, adjust budgets, focus their marketing efforts, and
more.

An example of a trend is the music technology market. Many years

ago, people started listening to music on the radio. Then boomboxes
took center stage. Next, people bought iPods to listen to their
favorite tunes. And more recently, people have been installing music
streaming apps on their smartphones.

Market trends can easily make or break a business. Catching the

trend early and analyzing it could keep you ahead of the competition
and protect your market share.

Types of Market Trends:

Uptrend
Uptrend usually means that financial markets are taking steps
forward. In most cases, it could demonstrate economic growth and a
growth in the number of jobs. An uptrend is a time when prices of
assets are rising, so it's an opportunity to make a profit.
Upward trends often happen when the company is experiencing a
positive change in sales or growth. It's time to take action because
uptrends rarely last long.

Image Source: https://tradersunion.com/technic-analysis/uptrend/

Downtrend
A downtrend in the economy usually means a decrease in its size in
sales or growth. The value of stocks could decline rapidly and affect
the company's well-being. At this point, customers may be making
fewer purchases, and businesses could be reevaluating their sales
strategies.

During a downtrend, you must look for new ways to stay competitive
and keep the customer's attention.

Image Source:
https://www.investopedia.com/terms/d/downtrend.asp

Sideways trend
A sideways trend (also called a horizontal trend) happens when
prices don't move dramatically up or down, and the demand doesn’t
either. A horizontal trend means consistency for the market where
forces of supply and demand are nearly equal. However, similar to
other trends, it rarely lasts long.

Horizontal trends don't have a good influence on the economy.

Accordingly, governments may take action to encourage an upward

trend.
Image source:
https://www.investopedia.com/terms/s/sidewaystrend.asp

Market trends can also be:

 Short-term. These trends can only occur over a few days or

even hours. Examples are social media trends, holidays, and
news. For example, a news story relevant to your business
could drive you to adjust your offer or re-engage with a target
audience segment.

 Intermediate. These trends could last several weeks (usually

between one or two months). Examples are elections, tax
time, deadlines, and December holidays. You may need to
adjust your offer to stay competitive until the trend subsides.

 Long-term trends. These trends could take years. They

might involve significant political changes (Democratic vs
Republican government) or serious technological trends (iPod
vs boombox). To accommodate these trends, you may need to
adjust your entire sales and marketing strategy or change the
approach to product development.

One of the major examples of a long-term trend is the COVID-19

pandemic. Many companies perished in just a few months, while
others reinvented themselves to meet the new environment and
made billions of dollars.

https://dovetail.com/market-research/market-trends/

Connection Between Market Trends and Customer Needs

Analyzing market trend is an essential part of business operations.

Regularly identifying and analyzing these trends helps the business
stay efficient and competitive, focus on the direction it needs to go
in, and protect and improve its bottom line. Listening to your
customers is one of the simplest yet most effective ways to identify
market trends. When you see customer needs changing, you’ll likely
see a change in the market's direction.

Soliciting customer feedback can quickly provide meaningful data

for short or long-term business planning and allow you to make
changes to meet the market.

https://dovetail.com/market-research/market-trends/
#:~:text=Customer%20analysis,changes%20to%20meet%20the
%20market.

TECHNIQUES FOR UNDERSTANDING CUSTOMER NEEDS

AND MARKET TRENDS

1. Interview - this method is conducted directly between an

interview and another participant in-person or online, where
there is a two-way conversation happening between each
member on research topics. Often, the interviewer will prompt
discussion by asking a series of open-ended questions. As
noted by Dillman (2007), interviews provide qualitative
insights into customer motivations, preferences, and needs.
They offer a detailed understanding of the market from the
perspective of key stakeholders. This can be done in-person,
online, or phone calls, with one-on-one conversations with
customers, stakeholders, or industry experts provides more
detailed insights.

2. Surveys - a survey is a list of open and closed-ended

questions that are put together and sent to a participant
digitally — either by email or through a survey software that
collects the answers automatically. Survey questions can vary
and using the right survey question for your goals is
important. Surveys are effective tools for gathering
quantitative data about customer preferences and
satisfaction. Dillman (2007) explains that properly designed
surveys allow businesses to identify market gaps and forecast
trends. Questionnaires distributed to a target audience to
collect structured data.

3. Focus groups - a sample of participants that represent your

target market are brought together (based on demographics
and characteristics). A key researcher or interviewer conducts
a conversation where questions are asked about a product or
service. Insights are taken from the answers of the group.
 4. Market Segmentation - is the practice of dividing your
target market into approachable groups. Market segmentation
creates subsets of a market based on demographics, needs,
priorities, common interests, and other psychographic or
behavioral criteria used to better understand the target
audience. ( https://www.qualtrics.com/en-au/experience-
management/brand/what-is-market-segmentation/
#:~:text=Market%20segmentation%20is%20the
%20practice,better%20understand%20the%20target
%20audience.)

5. Competitor Analysis - is about knowing who your

competition is and understanding their strengths and
weaknesses, in comparison to your organization. It can also be
about your competitive offering in the market, or how to
approach a new market. The aim of this research is to find
ways to make your organization stand out and future planning
through horizon scanning and listening to customer
preferences.

For example, for competitive analysis, researchers would

create a SWOT for your business and your competitors, to see
how your business compares.

Primary research could interview customers about their

buying preferences, while secondary sources would look at
competitor’s market dominance, sales, structure and so on.
With this thorough analysis, you can understand where you
can change to be more competitive, and look for ideas that
make you stand out.

https://www.qualtrics.com/en-au/experience-management/
research/market-research-types/

KEY TECHNIQUES IN MARKET ANALYSIS

In today data-driven world and crazy competition business

environment, you need constantly searching and updating your
market knowledge. That is why the basic market research analysis
methods are a valuable weapon for any company.

They are a great basis for forecasting sales, data and marketing
intelligence, decision making, creating strategies and more.
1. Factor Analysis
Factor analysis is a well-known statistical technique used to decline
a large number of variables (which strongly correlate with each
other) into a common group called a factor. The factor analysis is an
exploratory analysis. It groups similar variables into dimensions.
Factor analysis has a very important role in marketing strategies
and market research. Marketing factor analysis is changing one
marketing variable/factor to see what will be the change to the other
variable – the outcome.

For example:
Factor analysis requires when a company changes one marketing
point, such as the price of a product, to see the changes of the sales
of that product.

A crucial point here is to change only one variable at a time to be

able to measure the relationship between the variables and the
outcome. Factor analysis in marketing area is one of the key
marketing analysis methods because it reflects the perception of the
buyer of the product. You are able to find out what is important to
your customers of the product.

2. Cluster Analysis
Cluster analysis is a powerful statistical tool used to classify
different types of objects into groups (clusters). Businesses use this
type of market analysis method to analyze data that has been
categorized on similarities and differences. As you might guess,
cluster analysis is widely used for market segmentation.

This method is used to quantify and characterize customer

segments, cluster analysis enables you to target your customers
according to their needs, beliefs, geographical location, behavioral
and etc.

Why is cluster analysis a key marketing tool?

Because once a company finds out which type of consumer fits into a
group, it can create successful marketing strategies related to the
needs of its target segments. This definitely helps you to discover
new market opportunities.

3. Logistic Regression
Logistic regression is very similar to the linear regression models, as
it is used to get an understanding of the relationship between a
dependent variable and one or multiple independent variables. Good
examples of logistic regression application in marketing could be to
predict if it has a probability for a consumer to buy a product, given
that their age is known.

Marketers use widely logistic analysis to assess the scope of

customer acceptance and customers’ purchase intentions of a new
product. This way, marketers can predict potential sales of that
product.

4. Discriminant Analysis
Discriminant analysis as the cluster analysis is widely used for
marketing segmentation. Discriminant analysis classification is
based on the measured values for a group of characteristics for each
unit separately. It means that each unit has characteristics than
could be measured and those values vary from one observational
unit to the other. In comparison with other marketing analysis
methods, DA is much easier, especially if there are more than two
groups.

Applications of discriminant analysis in marketing area are:

 Distinguish between heavy, medium, and light users

 Defining how market segments differ in media assimilation
 Defining the traits of consumers who will respond to direct
marketing campaigns, etc.

5. Regression Analysis
Regression is a famous prediction technique that quantifying the
relationship between dependent variable to one or more
independent variables.

In marketing field, the regression analysis is widely used to predict

how the relationship between two variables, (for example between
advertising and sales), can develop in the time. The main goal of
regression analysis is to predict and control the relationship
between at least two variables. This type of market analysis method
is used for variations in market sales, share, and brand loyalty.

Business or marketing intelligence specialists can draw the

regression line with data extracted from sales in the past periods.
Regression analysis can also be used in customer satisfaction
research to answer questions such as: “Which product
characteristics contribute most to someone’s overall
satisfaction?”

6. Correlation Analysis
To put it in a simple way, correlation analysis is a technique used to
identify how closely related two variables are to each other. It
studies the degree of a relationship between two, numerically
measured variables. This type of analysis method is useful when you
want to know if there are possible connections between variables.

For example:

Correlation analysis is used for answering questions such as: “Do

longer blog posts get more shares on Facebook?”

According to B2B International, correlation analysis helps you to

“find out what satisfies your customers and employees – and what
keeps them loyal.” What is the difference with regression analysis?
Regression analysis emphasis on the prediction while correlation
analysis focuses on the strength/the degree of a relationship
between two variables.

EVALUATING COMPETITOR OFFERINGS

Competitor Analysis
A competitive analysis is an assessment of your competitors’
products, services and sales tactics, evaluating their strengths and
weaknesses relative to your own. It’s good business practice to
conduct a full competitive analysis at least once a year.

This analysis will help you see your own unique advantages as well
as any potential barriers to growth so you can strengthen your
marketing and business strategies. It also keeps your business
proactive instead of reactive. Many entrepreneurs operate based on
preconceived ideas about their competitors and market landscape,
but those ideas may not be accurate or may be out of date.

Key Steps in Evaluating Competitor Offerings:

1. Identify Competitors
This sounds straightforward, but in fact there are different kinds of
competitors to consider. They include:

 Direct competitors: These are the businesses that offer

similar products and services and target the same customers
in the geographic area that your business serves.
 Secondary/indirect competitors: These are the businesses
that offer different products and services and target a
different clientele, but are in your same general category
(e.g., a winery and a brewery are secondary competitors
because they both sell alcohol).
 Substitute competitors: These are businesses that offer
different products and services but target the same customers
in your geographic area.

2. Gather information about your competitors

Once you’ve identified your competitors, evaluate them in terms of
the
“Four Ps” of the marketing mix:

 Product: Compare their products to your own, ideally by

purchasing and trying them out yourself. How is the quality?
What features do you like or dislike?
 Pricing: How are their products and services priced? Do their
prices vary for channel partners and customers? What is their
discount policy? Can you estimate their cost structure?
 Place: What is their geographic reach or service area
compared to your business?
 Promotion: What marketing tactics are they using to interact
and engage with their customers? What is their presence on
social media?

https://www.bdc.ca/en/articles-tools/marketing-sales-export/
marketing/how-evaluate-competition

3. Study Marketing and Branding

Evaluate how competitors position themselves in the marketplace.
This will allow you to create a marketing strategy that gets your
brand in front of your target audience. For each competitor, answer
these questions:

 What social media influencers does this company partner with

to leverage their authority, authentic content, and personal
connections to target customers?
 What affiliate marketing or brand ambassador programs does
this company offer to leverage the recommendations of
satisfied customers?
 What kind of digital or traditional paid advertising presence
does this company have?
 On what marketing channels do competitors publish organic
content, including websites, landing pages, social media
 platforms, and email?
 What type of content do you see, including articles, videos,
ebooks, reports, commercials, and digital ads?

For reflecting on competitor’s branding, get to know your

competitors by auditing their brand identities and determining why
customers might feel connected (and loyal) to that brand. For each
competitor, answer these questions:

 If this company were a person, how would you describe its

personality?
 What words, phrases, tone, and style do this company use in
its messaging?
 What values do competitors communicate through their
messaging?
 How would you describe the visual elements of this company’s
branding? And how do those elements correspond to the
brand’s values, voice, and personality?
 What emotions do the brand elements evoke in customers?

4. Evaluate Customer Experience

In this step, you will scour competitors’ customer reviews, reactions,
and comments on their social media posts, mentions, media
appearances, and even employee reviews on job sites to understand
their perception of competitors in the marketplace. With this
information, you can strategize how to garner a positive reputation
for your brand, learn from competitors’ mistakes and challenges,
and work to avoid any pitfalls yourself. For each competitor, explore
the following:

 How do followers and subscribers interact with this

company’s public content?
 What is the general public sentiment regarding this company,
based on mentions, product reviews, and social media likes
and comments? Include praise as well as complaints.

https://www.coursera.org/articles/competitor-analysis

TOOLS FOR COMPETITOR ANALYSIS

1. SWOT Analysis
A SWOT analysis is a classic exercise for identifying the Strengths,
Weaknesses, Opportunities, and Threats that exist within the
competitive landscape. Conduct a SWOT analysis of your
competitors to consolidate everything you’ve learned into a succinct
story. It helps businesses understand where they stand in
comparison to their competitors and develop strategies accordingly.

 What are your competitors’ strengths in branding, marketing,

customer journeys, and products?
 What are your competitors’ weaknesses in branding,
marketing, customer journeys, and products?
 What opportunities do you see for your business to capitalize
on?
 What is your competition doing that might pose a threat to
your business?

https://www.coursera.org/articles/competitor-analysis
Image Source:
https://www.wordstream.com/blog/ws/2017/12/20/swot-analysis

2. Benchmarking
Competitive benchmarking is basically the process of utilizing a
variety of metrics in an effort to compare the success of your brand
with its competitors as well as the overall market. Basically, it
allows you to determine where you stand within your industry.

This particular comparison method allows your business to evaluate

your overall performance, identify best practices within the industry,
and move forward with a plan that will allow you to maintain an
edge over your competition.

You will identify the companies that are succeeding in customer

engagement so that you can spot the practices and strategies they’re
using to engage customers — more specifically, the practices and
strategies that you aren’t currently utilizing.

https://rockcontent.com/blog/competitive-benchmarking/
#:~:text=Competitive%20benchmarking%20is%20basically
%20the,you%20stand%20within%20your%20industry.

What Metrics Should You Look at for Competitive

Benchmarking?
There are lots of metrics to consider when conducting competitive
benchmarking:

1. Market Share of Traffic

Market share of traffic is the percentage of traffic your website has
in a defined market. It indicates how well you’re competing with
other players in your space. A high share of traffic means you have a
dominant position. A low share means you have room to grow and
capture more of the market.

Here’s the formula to calculate this metric:

Market share of traffic = (your company’s traffic / market

 traffic) x 100

2. Website Traffic by Channels

Website traffic by channels is the breakdown of traffic to your
website coming from different channels, such as organic search,
paid search, social media, email, referral, etc. Here’s what a report
detailing visits from different channels looks like in Google Analytics
4 (GA4):

Traffic acquisition report in Google Analytics 4

It reflects how popular your website is in your market when you
compare it to your competitors’ traffic numbers.

3. Social Media Followers

Social media followers refer to the number of people who follow
your brand on social media platforms like Facebook, Instagram, X
(formerly Twitter), and LinkedIn.

Semrush has over 390K followers on LinkedIn

Having more followers than competitors signals you have stronger
brand awareness and affinity. And it means you’re likely to get more
engagement.

4. Keyword Rankings
Keyword rankings are the positions that your website has in the
search results for specific words or phrases. They indicate how
visible your website is in search engines.
Keyword rankings overview report in Semrush
Higher keyword rankings mean you have better visibility for relevant
searches. Lower rankings mean opportunities to improve your SEO.

5. Share of Voice
Share of voice (SoV) measures your brand's visibility across
channels compared to your competitors.

Share of Voice data show in Semrush

It takes into account the entire digital landscape—organic search,

social media mentions, press coverage, etc. A higher share of voice
indicates that your brand is more prominently represented than your
competitors.

https://www.semrush.com/blog/ins-and-outs-of-competitive-
benchmarking/

3. Market Research Tools

Competitor market research tools help businesses gather data on
competitors, analyze market trends, and refine business strategies.
Below are some of the best tools categorized based on their
functions.
Business Need Available Tools
Website & SEO Analysis SEMrush, Ahrefs, SimilarWeb
Social Media Monitoring Social Blade, Hootsuite,
BuzzSumo
Pricing & Product Comparison Prisync, CamelCamelCamel,
ReviewTrackers
Market Trends & Consumer Google Trends, Statista, Think
Insights with Google
Competitor Ads & PPC Facebook Ad Library, SpyFu,
Research Moat
Business & Industry Reports Crunchbase, IBISWorld,
LinkedIn Sales Navigator

Preview: SimilarWeb

BENEFITS OF EVALUATING COMPETITOR OFFERINGS

1. Improved Decision-Making
Competitor analysis provides the data and insights needed to make
strategic business decisions. Understanding what your competitors
are doing allows you to:

 Adjust marketing strategies: Tailor your marketing

campaigns based on what works well for your competitors.
 Optimize product offerings: Improve or modify your
products and services to meet customer needs and
preferences better.
 Strategize pricing: Develop competitive pricing strategies to
attract customers.

2. Better Customer Understanding

Analyzing competitors also provides insights into customer
preferences and pain points. This helps you:
  Understand customer needs: learn what customers value
most about your competitors and incorporate those elements
into your offerings.
 Improve customer experience - identify competitors’
customer service gaps and enhance your own to provide a
superior experience.
 Build customer loyalty - develop initiatives that address
unmet customer needs and foster stronger relationships with
your clientele.

For example, if competitor reviews highlight poor customer service

as a common issue, you can prioritize exceptional customer service
to differentiate your brand and build loyalty.

3. Innovation and Differentiation

Competitor analysis helps uncover gaps in the market that your
business can exploit.

 Unmet needs - by identifying unmet needs or underserved

segments, you can develop products or services that fill these
gaps and attract new customers.
 Innovation opportunities - competitor analysis can inspire
innovation by highlighting areas where competitors are
lagging. You can seize these opportunities to introduce new
features or services that set you apart.
 Market differentiation - understanding how competitors
position themselves allows you to differentiate your brand
more effectively, emphasizing your unique value propositions.

4. Risk Mitigation
Competitor analysis helps you identify potential threats and develop
strategies to mitigate them.

 Threat identification - recognize threats from new entrants,

substitute products, or aggressive competitive tactics.
Understanding these threats allows you to prepare and
respond effectively.
 Contingency planning - develop contingency plans to
address potential challenges posed by competitors. This
proactive approach ensures that your business is resilient and
adaptable.
 Market defense - implement defensive strategies to protect
your market share and prevent competitors from gaining an
advantage.

https://asymmetric.pro/understanding-competitor-analysis-a-
comprehensive-guide-for-business-leaders/

DIFFERENTIATION STRATEGIES

A broad differentiation strategy involves offering unique and

valuable products or services that competitors cannot provide. This
approach not only sets your brand apart but also helps increase
sales by demonstrating how your company uniquely solves customer
problems.

1. Product differentiation
Creating a product with better features, performance or efficacy.
Those characteristics will differentiate your product, and you may
communicate this through effective marketing and advertising.

2. Service Differentiation
This includes not only delivery and customer service, but all other
supporting elements of a business such as training, installation, and
ease of ordering.

3. Distribution/Channel Differentiation
Your chosen channels of distribution can provide coverage or
availability, immediate access to expertise, and greater ease of
ordering, and higher levels of customer or technical service.

4. Relationship Differentiation
An often overlooked means of differentiation is through company
personnel. Employees, associates, or team members with customer
interface can provide and demonstrate competence, courtesy,
credibility, reliability, and responsiveness.

5. Image Differentiation
Image is controlled and managed by symbols used in
communications, advertising, and all types of media — written,
digital, and audio, as well as the atmosphere of the physical place
where customers encounter the business.

6. Price Differentiation
Successfully competing on price requires recognition that every
customer has a different price they would be willing to pay for your
product. Segmentation and differentiation allow a business to come
close to maximizing the potential revenue by offering each segment
a differentiated product at a different price.

https://lonelyentrepreneur.com/product-differentiation-strategies-
examples/

BENEFITS OF DIFFERENTIATION

1. Reduction in Price Competition

A differentiation strategy allows a company to compete in the
market with something other than lower prices. For example, a
candy company may differentiate its candy by improving the taste or
using healthier ingredients. Although its competitors have cheaper
candy, they can’t provide the taste that consumers may want from
that specific candy company.

2.Uniqueness in Products
The benefit of a differentiation strategy is that it builds on the
unique qualities of a product. Your company may create a list of
characteristics its products contain that your competitors lack.
Those characteristics will differentiate your product, and you may
communicate this through effective marketing and advertising.

3. Higher Profit Margins

When products are differentiated and turned into higher-quality
products, it offers more opportunity for larger profit margins. For
example, if your target market is willing to pay a higher price for top
quality or better value, you may generate more revenue with fewer
sales.
4. Customer Loyalty
Effective differentiation may create brand loyalty in customers if a
business maintains the perceived quality of its products. For
example, if you have a brand that is marketed by a sports figure, it
will likely increase brand loyalty because it enhances the value of
your brand.

5. Minimum or No Substitutes
A successful differentiation strategy creates the perception that no
substitute products are available in the market, giving the business
an advantage even when similar products exist. Companies try to
differentiate themselves by providing consumers with unique
products that are frequently revolutionized.

https://www.indeed.com/career-advice/career-development/
differentiation-strategy

Challenges of Differentiation/ Why Differentiation Strategy

Can Fail:

1. Easier to copy
When a company successfully differentiates its products,
competitors are likely to take notice and respond. This can lead to a
competitive race to imitate or surpass the differentiation, eroding
the initial advantage. For example, if a coffee chain introduces a new
specialty beverage that becomes popular, rival chains may quickly
introduce similar offerings to capture the same customer segment.

Tip: To counter competitive responses, businesses must continually

innovate and stay ahead of the curve. By consistently investing in
research and development, companies can maintain their product
differentiation and pricing power. Additionally, building strong
brand loyalty, customer relationships, and intellectual property can
act as barriers to entry for competitors.

2. Fail to understand the customer

Product differentiation can potentially dilute a growth firm's brand
identity and confuse customers. When a company expands into
unrelated product categories or markets, customers may struggle to
understand the company's core offering or value proposition. This
can result in a loss of brand loyalty and customer trust. For example,
if a technology company known for producing high-quality
smartphones suddenly starts manufacturing low-end consumer
electronics, it may undermine its reputation as a premium brand
that they are known for that makes the customer feel prestigious
and successful – addressing their emotional need.

Conclusion
Understanding market needs and opportunities is essential for
businesses to remain competitive, profitable, and relevant. By
identifying gaps in the market, businesses can introduce new
products, services, or improvements to existing offerings, ensuring
they meet evolving customer demands. This process involves a deep
understanding of customer needs, which can be functional,
emotional, or social, and requires businesses to employ various
techniques such as interviews, surveys, and market analysis to
 gather valuable insights.

Market trends play a crucial role in shaping customer preferences

and behaviors. By staying attuned to these trends—whether they are
uptrends, downtrends, or sideways trends—businesses can
anticipate changes and adapt their strategies accordingly. This
proactive approach not only helps in maintaining a competitive edge
but also in fostering customer loyalty and satisfaction.

Moreover, evaluating competitor offerings through tools like

SWOT analysis and benchmarking provides businesses with a clear
understanding of their market positioning. This analysis helps in
identifying strengths to leverage and weaknesses to address,
ultimately leading to better decision-making and strategic planning.

Differentiation strategies further enable businesses to stand out

by offering unique value propositions. Whether through product
innovation, superior service, or effective branding, differentiation
helps in reducing price competition, increasing profit margins, and
building customer loyalty. However, businesses must be cautious of
the challenges associated with differentiation, such as the risk of
being easily copied or failing to understand customer needs.

Overall, a comprehensive approach to identifying market needs and

opportunities, coupled with effective differentiation strategies,
allows businesses to navigate the competitive landscape
successfully. By continuously analyzing market trends,
understanding customer needs, and evaluating competitors,
businesses can create well-informed, customer-centered strategies
that drive growth and sustainability.

APPLICATION Concept Map Making

Materials:
 Cartolina paper
 Markers

Instruction:
1. With the same group, create a Concept Map on:
Group 1: Techniques for identifying market
opportunities
Group 2: Differentiation Strategies
2. The groups will be given 10 minutes to prepare and 2 minutes
to present their work to the class.

Score Description
20 The concept map is highly organized, visually
appealing, and easy to follow. It thoroughly covers all
key ideas related to the assigned topic, with clear
connections between concepts. Content is accurate,
detailed, and supported by relevant examples.
19 The concept map is well-structured and presents key
ideas effectively. Most connections between concepts
are clear and logical. Content is mostly accurate and
includes some relevant examples. The presentation is
visually neat with good use of materials. Minor areas
for improvement in organization or depth of
explanation.
18 The concept map includes basic information but lacks
 depth or organization. Some connections between
ideas are unclear or missing. Content may have minor
inaccuracies, and examples are limited or not fully
relevant. The use of materials is adequate but could
be improved for better clarity. Group effort is evident
but uneven.
17 The concept map includes basic information but lacks
depth or organization. Some connections between
ideas are unclear or missing. Content may have minor
inaccuracies, and examples are limited or not fully
relevant. The use of materials is adequate but could
be improved for better clarity. Group effort is evident
but uneven.

ASSESSMENT
Multiple Choice

Instruction: Read and understand each question carefully. Write the letter of the correct
answer in the space provided before each number.

_____1. What do market needs and opportunities refer to?

a. Gaps in the market where businesses can improve existing products only
b. Gaps in the market where businesses can introduce new products, services, or
improvements
c. The total demand for a product or service
d. Changes in consumer behavior that do not influence business decisions

2. According to Kotler & Keller, what do customer needs represent?

a. The preferences for luxury items
b. The fundamental problems or desires businesses aim to address through their products
or services
c. The social trends influencing customer behavior
d. The latest economic shifts in the market

3. Which of the following is an example of an explicit need?

a. A customer stating they need a laptop with long battery life
b. Customers expecting free delivery with their online order
c. A customer not realizing they need a mobile app
d. A customer assuming the product has good after-sales service

4. What is an example of a latent need?

a. A customer requesting a feature upgrade for a product
b. A customer identifying a clear requirement for a specific product
c. A customer realizing they need a new smartphone app
d. A customer expecting good after-sales service

5. What is a market trend?

a. A fixed pattern in customer preferences
b. A shift in consumer behavior, industry standards, or economic conditions that influence
demand
c. The forecast of a company’s financial performance
d. A business strategy for reducing prices

6. Which of the following is a technique for identifying market opportunities?

a. Social media promotions
b. Product comparison
c. Interviews, Surveys, and Market Analysis
d. Customer loyalty programs
7. What is a key advantage of surveys in identifying market needs?
a. They offer cost-effective, scalable ways to gather quantitative data
b. They provide qualitative insights into customer motivations
c. They are time-consuming and require deep analysis
d. They only gather general opinions, without any targeted questions

8. Why is competitor analysis important for identifying market opportunities?

a. It forces businesses to lower their prices to compete
b. It helps businesses imitate competitors' products
c. It allows businesses to understand their competitors’ strengths, weaknesses, and
strategies
d. It determines how much a competitor is selling their product for

9. What is an example of a differentiation strategy?

a. Offering the same features as competitors
b. Creating a strong brand identity and emotional connection with customers
c. Competing based solely on low prices
d. Ignoring customer feedback

10. What is an example of product innovation as a differentiation strategy?

a. Using more generic branding to appeal to a larger audience
b. Focusing on providing exceptional customer service
c. Introducing a new product feature or improving the quality of an existing product
d. Offering a product at a lower price than competitors

11. What type of market trend is influenced by increasing consumer concern for
environmental issues?
a. Technological advancements
b. Economic shifts
c. Social trends
d. Demographic changes

12. Which of the following would be considered an implicit need?

a. A customer wanting a phone with more storage space
b. A customer assuming the product will be delivered in 2-3 days
c. A customer specifying the need for a quick return policy
d. A customer looking for a service with the latest software

13. What is the key benefit of conducting a market analysis for a business?
a. To improve customer loyalty programs
b. To identify emerging trends, competitor strategies, and customer behavior
c. To predict the future of a company’s financial status
d. To develop short-term promotional offers

14. What is the main goal of using differentiation strategies in business?

a. To make products affordable for all customers
b. To decrease the number of competitors in the market
c. To focus on a mass market approach without individual targeting
d. To set the business apart from competitors by offering unique value propositions

15. How do businesses use demand forecasting in market analysis?

a. To predict consumer behavior based on historical data
b. To analyze competitors’ sales and pricing strategies
c. To calculate potential profits based on product pricing
d. To identify the most profitable customer demographics

Prepared by:
AMOGUES, CARL VINCENT
ASIS, JEFFERSON
ANOVER, JOHN CYRIL
BACASNOT, DANRYAN
BAGTONG, CHRISTINE JANE
BANGGALAN, EARIOL JHON
BAYANA, KENNY JAY
BUTLIG, KHENT BRYAN
BSED Math III PSTs

Checked by:

AZRIEL P. BARRIENTOS, MSciED

Instructor