ENTREPRENEURSHIP

RHEA A. LUPOS
Subject Teacher
 LET’S RECALL
Directions: Using the first letter. Identify the important qualities of an
Entrepreneurs

R Risk Taker I Innovative

S Self Confident L Leadership
H Hard Working P Positive
Thinkers
D Decision - maker
 TOPIC: RECOGNIZE A POTENTIAL
MARKET
Module: 3 Week: 3 Quarter: 1st

LEARNING COMPETENCIES:
• The learner demonstrates understanding of concepts,
underlying principles, and processes of developing a
business plan.

OBJECTIVE/S
• To define market.
• Identify the market problem and propose solution using
techniques on seeking, screening and seeking
opportunities.
• Identify potential market through trends in opportunity
seeking
• Select the best product or service that will meet the market
need.
INTRODUCTION

Business firms are concerned with the needs of

individual consumers and organizations, their
long – range concern is really satisfying the
needs of the aggregate group called
“market”. This is so because it is only
through serving a sufficient number of people or
organizations that economy in operations and
profits become possible.
What is Market?
• place where sellers and buyers exchange good (or services) upon an
agreed price.

• as a group of people or organizations that buy a particular good or

service, concept.

• is any mechanism that enables buyers and sellers to strike bargains and
to transact.

• is composed of people with needs to satisfy, the money to spend and the
willingness to spend.

• is composed of people with needs to satisfy the money, the willingness

to spend and the ability to satisfy the objectives of the seller.
 TYPES OF MARKET

According to Institution According to Form

 Consumer Markets – Buyers who intend to directly
consume a product or service constitute the consumer  Primary Markets - This is the type of
market. market that is formed when firm
 Organizational Market – This is second general type introduces a new product class in
of market constitutes buyers of products or services response to latent demand or needs.
whose intention is to produce another product or
service.
 Secondary Markets – This type is an
offshoot of the primary market and it
Industrial Market Government Market
is formed when customers develop
Reseller Market Non – Profit Organization
specific needs or preferences.
 International Market – This refers to all types of
buyers found abroad including consumers and
organizations.
 What is Marketing Segmentation?

- Is a sub- group of a particular market which is composed

of units with more or less similar characteristics. People may
have similar wants, financial resources, geographic locations,
buying attitudes, and buying patterns.

For example: Market for books

Teachers
Students
Bases for Market Segmentation
o Geographic Segmentation – requires dividing the market into different
geographical units like nations, regions, provinces, cities, towns, and
barangays.
o Demographics Segmentation – refers to dividing the market into segments
on the basis of demographic variables like age, sex, family life cycles,
family size, income , occupation , education, religion, race, and nationality.
o Psychographic Segmentation - refers to the classification of buyers or
consumers by some psychological characteristics they posses in common.
o Behavior Segmentation – is a term that refers to the grouping of buyers on
the basis of their knowledge, attitude, use or response to a product.
 Requirements for Effective Market
Segmentation

 It must be measurable – easy to find information

 It must be substantial – easy to create marketing program
 It must be accessible – easily to reached
 It must be actionable – can be useful
Criteria to be considered in selecting target
market
 Size – In choosing a market segment, it must be large enough to be worth serving.
 Expected growth – there are markets that are not currently attractive but some of these
may be expected to grow in the future.
 Competitive position – The presence of competition in the segment. The strength of the
competition must be thoroughly analyzed.
 Cost of reaching the segment – A market segment that is chosen must be easily
reached by the firm. If marketing efforts to reach the market will be expensive or not.
 Compatibility with the firm’s objectives and resources – If the firm does not have
enough resources to serve a prospective segment. Example fast – food restaurant is
considering delivery service but does not have funds to support the idea or do not have
funds to buy delivery equipment the idea should be abandon.
 Identifying Market Problem

an entrepreneur can make ways to discover existing

market problems and one of which is through
observation. He can observe what is happening in his
locality and check for any difficulties, gaps, needed
improvements, scarcity, limitations and many others.
 One of the common problem as we all know
during COVID 19 pandemic is limitations from
going out during lockdown and quarantine.
Through observation, market problem is very
visible.
 Another way that an entrepreneur can do is asking or making an interview
with knowledgeable persons or business oriented person. Because of their
experiences and knowledge in business, they can easily identify existing market
problems. They can also share the problems they are facing and the entrepreneur
can have the opportunity to solve it.

An entrepreneur is affected by his skills and knowledge about a particular

problem but this will serve as a challenge or a chance for improvement.
ESSENTIAL ELEMENTS IN IDENTIFYING
MARKET PROBLEMS
(GREGG LEARNING 2016)

Identify yourself as a problem solver

Recognize problem
Select Intuitive Approach
Select a systematic approach
TRENDS FOR OPPORTUNITY SEEKING
(MORATO 2016)

Macro Environment
Industry
Market
Micro Environment
Consumer
 MACRO ENVIRONMENT

- Concerns with the bigger aspect of business which

includes determination on Political, Economic, Social,
Technological, Legal and Environment (PESTLE) as
cited by PESTLE Analysis Contributor (2015).
POLITICAL ASPECT

- Some application of Political aspects that affects business

positively is the financial support of the government to the
small businessmen, reduction of tax and the “Balik
Probinsya” program by the government to lessen
concentration of Covid 19 cases in NCR.
ECONOMIC ASPECT

- An entrepreneur can consider the product or

service that is more demanded by the customer
thus will lead to increase in sales or service.
SOCIAL ASPECT

- We can consider starting a business to adjust

with the “New Normal” increase delivery option of
the business than Dine-in, to lessen close contacts
to other people which will lessen the increase of
Covid 19 patients.
TECHNOLOGICAL ASPECT

- Refers to the use of internet platforms in

business and other innovations.
LEGAL ASPECT

- A law that directly affects the business like Bayanihan Act

2020. this law is positivse for businesses like money transfer
businesses due to limited transportation, money support for
relatives being sent through these types of businessses.
ENVIRONMENT ASPECT

- The things to consider in the business that are inclined

to be environment friendly like less plastic and use of
organic materials because many people are becoming
concerned with the environment due to climate change.
 INDUSTRY

- The smaller than macro-market but second to the list in the

Trends in Opportunity Seeking. The National Capital Region and
Calabarzon on Laguna and Batangas have different areas under
Philippine Economic Zone (PEZA) that are helping not only the
government but also creating jobs for the community. They are the
customers of local supplier companies and contractors.
 MARKET

- A market is any place where makers, distributors or retailers sell,

and consumers buy. Examples include shops, high streets, or
websites. The term also refer to the whole group of buyers for a good
and service (Market Business News 2020) an entrepreneur can start
business and join in markets but should always consider competitive
price and quality product.
MICRO MARKET

- Smaller than market but still can be a source of

opportunity to small entrepreneur.
CONSUMERS

- They are the buyers of products in retail and for household

use. They can buy using online platforms and other ways of
buying products. Physical boundaries now are minimized
because of this new way of marketing and can be an
opportunity for an entrepreneur.
Conclusion
o Market can be a place where buyer and sellers meet to exchange goods and service or
group of people/ organization that buy goods and services.

o Market Segmentation - Is a sub- group of a particular market which is composed of units

with more or less similar characteristics.

o Import - The term import is derived from the conceptual meaning as to bring in the
goods and services into the port of a country.

o Export - The term export is derived from the conceptual meaning as to ship the goods
and services out of the port of a country.
 ACTIVITY TIME
Module: 3 Week: 3 Quarter: 1 st

Directions: Determine at least (3) three product/s or service/s that is commonly patronized in
your area, locality or community. Write your answer on the frame below.

1. ____________________________________
2. ____________________________________
3. ____________________________________
Thank you and think
wisely in searching
your target market.