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3. Market Problem

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3. Market Problem

Uploaded by

trieshagengone8
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Recognizing the

Potential
Market
LET’S START!

•What is a Potential Market?


•What is a Potential Market
For?
• The definition of market says
that a market exists whenever
the buyer and seller come
together.
• A physical marketplace
brings buyers and sellers
together in the same location.
Market – is a place where two or more
people can gather to facilitate the
trade of goods or services
Market – total of all the buyers and
sellers in the area under a
consideration
Area – country, province, municipality,
city, barangay, sitio/barrio
Market need – a study of need and
want of the buyer/customer
Need – something that is necessary
Want – something that is a desire to
posses
• MARKET
• You could be familiar with the old idea of a
market, which is a physical place where
buyers and sellers come together. This still
happens, of course, but nowadays buyer and
seller do not have to be in the same place all
the time, to do trades with each other. Those
shopping malls, department stores, and retail
stores are examples of your physical markets
while Non-Physical Markets or Virtual
markets, are done through
•Potential market - is that
part of the total population
that has shown interest in
buying a product or
service. It simply means
possible customers.
POTENTIAL MARKET
• Potential market is about possible
customers. There are the people or
demographic groups from the total
population that are not yet in your list of
sure customers. They could still be your
sure customers if you:
• add to your available products or services
• start promoting your products and services
in a new way
POTENTIAL MARKET
• To keep customers and identify your new
potential markets, take note of what they
have in common with each other like
events in their lives that will influence
buying patterns, and where they connect or
separate. Many entrepreneurs attest to
this.
POTENTIAL MARKET
• It is your business to give customer satisfaction.
As an entrepreneur you must clearly identify the
right customers for your right product or service,
and then focus all your marketing, advertising,
and sales efforts on this customer. Whatever
product or service your business will provide, it
is a must to make sure that there is high demand
for it before investing time and money. That is
why it is a must to study buyers, as part of what
you analyze in the market along with competitors
and other aspects. These are moves mentioned
TRY IT!

•What is your own


definition of “Market
Problem”?
Activity:
• With your group, make a list of
your respective needs from your
locality, be it in the aspects of
food, shelter, clothing, and others
• Choose one or two to explain your
work in the class.
YOU BET!

•Why do we need to
identify the Market
Problem?
MARKET PROBLEM: Example
• If you had a gardening tools business, you
would interview gardeners to identify
problems that occur on the job. One problem
could be that paper yard bags do not stay
open while people are weeding.
• While your interviewees might say. “I need a
better paper bag,” the bag not staying open
is the market problem. You might choose to
solve this problem in a number of ways.
• MARKET PROBLEM
• Are the challenges, frustrations, and unmet needs of
your market.
• Are your target market’s stated or silent problems.
• This could refer to existing inefficiencies, awkward
workflows or non-optimal solutions.
• Stated needs – are explicit statement from your market
that declare “I want a product to do X”. Stated needs
are important, they are not as powerful as silent needs.
• Silent needs – are problems with undefined solutions
• Activity 2:
• Give 15 stated and 5 silent
needs
To deliver products that solve
your target customer’s
problems, you identify first
market problems. These maybe
stated directly as customers
needs or implied indirectly.
• Your market consist of:
• 1. EXISTING CUSTOMERS
- People who have already purchased your product
- they may also be referred to as current or repeat
customers.
• 2. PROSPECTS
- People who have not yet purchased your product but are
considering it prospect is a potential client, someone who is
in the market for your product and has the resources
needed to buy it but has not purchased it yet. Once the
prospect buys the product, which is always the end goal,
they become a customer.
• 3. TARGET MARKET USERS
- People in your target market who are
currently your target customers are those who
are most likely to buy from you.
• Here are some questions to get you started:
• Are your target customers male or female?
• How old are they?
• Where do they live? Is geography a limiting factor for any reason?
• What do they do for a living?
• How much money do they make? This is most significant if you're
selling relatively expensive or luxury items. Most people can afford
a carob bar. You can't say the same of custom murals.
• What other aspects of their lives matter? If you're launching a roof-
tiling service, your target customers probably own their homes.
HOW TO EVALUATE MARKET PROBLEMS

1.Is the market problem urgent?


2.Is the market problem pervasive?
3.Will your buyers pay to have this
problem solved?
pervasive - spreading widely
throughout an area or a group of people
The Entrepreneurial
Process
– is a step-by-step
procedure in establishing
any kind of business that an
entrepreneur has to
undergo. It is composed of 4
aspects:
• 1. Opportunity spotting and
assessment
- This is the beginning of the process
and is considered the most difficult.
Entrepreneurs at this point take note of
interesting trends in their environment.
Consumers are reliable sources of
opportunity information because
market needs originate from them.
• 2. Developing a Business Plan
- Entrepreneurs should formulate a business
plan when they have already spotted and
assessed the opportunities for a market. A
business plan is a comprehensive paper
that details the marketing, operational,
human resource, financial, strategic
direction, and tactics of the business.
The business plan will be the core guide and
direction of the entrepreneur in calculating
• 3. Determining the Capital
needed - to calculate the resources
needed to establish the business
and compare this against the
entrepreneur’s current resources.
• 4. Running the business
- the part where the entrepreneur
should use the resources allocated
•Assignment:

•Give the definition of the


following: seeking, screening,
and seizing

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