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Copy of Lesson 2 Entrep 1 (1)

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irylroux
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© © All Rights Reserved
Available Formats
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ENTREPRENEURSHIP

www.classpoint.app
Give at least one
trait/characteristic of a
successful entrepreneur.
Lesson: 2
Recognizing a
Potential Market
Lesson: 2 - Learning Competencies:

A. Analyze the market need


B. Determine the possible product/s or service/s
that will meet the need;
C. Screen the proposed solution/s based on viability,
profitability, and customer
requirements;
A.Analyze the
Market Need
Market Analysis
● a quantitative and qualitative evaluation of a market.
● The goal is to look into the size of the market both in
volume and in value, the various customer segments
and buying patterns, the competition, and the economic
environment in terms of barriers to entry and regulation.
● Demographics

How to do a Segmentation

market ● Target Market

analysis? ● Market Need

● Competition
Demographic ● Dividing the total people in the market
based on the customer demographics.

Segmentation ● age of the customer, gender, income,


family life cycle, educational qualification,
socioeconomic status, religion, etc.

● This helps in creating groups exhibiting


a similar need and want, and can be targeted
in a much more better way by companies.
Target
Target market is a group of customers that a
business has decided to aim its marketing
efforts towards.

Market Product, price, promotion, and place are the four


elements of a marketing

A target market consists of customers that


share similar characteristics, such as age,
location, income and lifestyle.

Target markets can be divided into primary and


secondary target markets.
entrepreneur must identify first the
business’ target market.

Recognizing The clearer the business can identify its


target customer, the more effective it could

the Target become in tailor-fitting its strategies in


getting customers.

Market
Target marketing focuses marketing
budgets and brand message on a
specific market,
Competitors are like each companies

Research enemies who always want bigger


portion of the market share.

the
Competition
B. Identify the
Market Needs
Is there is a consumer need
for your product?
Problem or need
a condition when consumers have the requirement for
a solution that either does not exist, or the available
solution have some limitations or gaps that needs to
be filled.
NEED

● Necessary or desired things.


● Needs encourage us to act.
C. Needs as the
Motivation for
Buying Products
The Maslow’s Hierarchy of Needs
Physiological Needs
needs are the most vital and therefore should be met first.

Safety needs
Safety needs include personal security, financial security,
health and wellbeing, safety net against accidents and
illness and their adverse impacts.

Social Needs
the stage for love and belongingness.
Esteem Needs
These needs include:
✔ Self esteem
✔Respect
✔Achievement
✔Confidence
✔Recognition
✔Accomplishment

Self-actualization Needs
This level pertains to what a person’s optimum potential is and
realizing that potential.
D. PRODUCT AND SERVICES

A product is a tangible item that is put on the


market for acquisition, attention, or consumption,
while a service is an intangible item, which arises
from the output of one or more individuals.
Sources of Business
Ideas
Surveys
- innovate based on the
responder’s answers.
Training
country’s institution that
offers short courses and
trainings for aspiring
entrepreneurs.
Experience
-Probably the best and effective
source of business idea is
from experience.
-This can be from work or
even at school.
Hobbies
can be a good business idea
because it is something that an
entrepreneur is fond of doing
and can enjoy while doing the
business.
Talents
- A talent is something that
can be innate in a person,
or that has been honed
for years.
Market Gaps
- Also known as “niche”, spotting a
gap in the market can also form a
great business idea. A market gap
can mean an important area in the Demand >
market that is not occupied and
therefore is can be filled with Supply
product
to satisfy the market.
Events
a venue where people
with
similar interests gather
and
where the birth of new
Media
Reading magazines, newspapers
and such published materials that
contain business related issues can
help one bring about.
Product Life Cycle
Introduction Stage

-Establishing branding and assuring the market of the


At the Introduction stage the quality of the new product.
product comes to the market -An initial low pricing policy to get into the market,
and the business looks to get though with little competition, price may be high initially
a foothold on the sales ladder to recoup development costs.
by: -Selection of a distribution model to get the product
onto
the market.
-Promotion of the product through aiming it at
specific target groups such as online forums.
Growth Stage

After successful Introduction -Maintaining the quality of the product and


adding any extra services or support that
comes the Growth stage.
becomes obvious during introduction.
This will look to take -Keeping the price at a good level to
developments at the first maintain
stage up to another level by: sales growth.
-Increasing distribution and sourcing new,
faster ways of getting the product onto the
shelves.
Maturity

With growth established, -Adding features that will make the product
differ from the inevitable competitors that
Maturity is the next stage of
enter the market.
the life cycle. The business
-Cutting price to counter competition.
deals -Revising distribution channels and using
with this by: incentives to encourage stores to stock the
original product in preference to
newcomers.
-New promotions that aim to show
differences between products.
Decline
-Keeping the product on the market but adding
When the Decline happens, or removing features or finding new uses for it.
the business will consider:
-Reducing costs and production and keeping it
just for a niche segment of the market.

-Discontinuing the product or selling the


production rights to another company.
Quiz next meeting: From Lesson 1-3.

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