Entrepreneurship 1st Quarter Module 3 PDF

Senior High School Entrepreneurship Entrepreneurship Quarter 1 – Module 3: Recognize a Potential Market Entrepreneurship – Grade 11/12 Quarter 1 – Module 3: Recognize a Potential Market First Edition, 2020 Republic Act 8293, section 176 states that: No co...

Senior High School Entrepreneurship Entrepreneurship Quarter 1 – Module 3: Recognize a Potential Market Entrepreneurship – Grade 11/12 Quarter 1 – Module 3: Recognize a Potential Market First Edition, 2020 Republic Act 8293, section 176 states that: No copyright shall subsist in any work of the Government of the Philippines. However, prior approval of the government agency or office wherein the work is created shall be necessary for exploitation of such work for profit. Such agency or office may, among other things, impose as a condition the payment of royalties. Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names, trademarks, etc.) included in this module are owned by their respective copyright holders. Every effort has been exerted to locate and seek permission to use these materials from their respective copyright owners. The publisher and authors do not represent nor claim ownership over them. Published by the Department of Education Development Team of the Module Writers: Jecyl J. Maureal and Brenda P. Gulay Editor: Mary Grace L. Batoon Reviewer: Mary Grace L. Batoon Illustrator: None Layout Artists: Jecyl J. Maureal and Brenda P. Gulay Template Developer: Neil Edward D. Diaz Management Team: Josephine L. Fadul – Schools Division Superintendent Melanie P. Estacio – Assistant Schools Division Superintendent Christine C. Bagacay – Chief Curriculum Implementation Division Leila L. Ibita – Education Program Supervisor – Social Studies Lorna C. Ragos – Education Program Supervisor Printed in the Philippines by Department of Education – Region XI Office Address: Enegry Park, Apokon, Tagum City, 8100 Telefax: (084) 216-3504 E-mail Address: [email protected] Senior High School ENTREPRENEURSHIP Quarter 1 – Module 3: Recognize a Potential Market Introductory Message For the facilitator: Welcome to the Entrepreneurship Alternative Delivery Mode (ADM) Module on (Recognize a Potential Market). This module was collaboratively designed, developed and reviewed by educators both from public and private institutions to assist you, the teacher or facilitator in helping the learners meet the standards set by the K to 12 Curriculum while overcoming their personal, social, and economic constraints in schooling. This learning resource hopes to engage the learners into guided and independent learning activities at their own pace and time. Furthermore, this also aims to help learners acquire the needed 21st century skills while taking into consideration their needs and circumstances. In addition to the material in the main text, you will also see this box in the body of the module: Notes to the Teacher This contains helpful tips or strategies that will help you in guiding the learners. As a facilitator, you are expected to orient the learners on how to use this module. You also need to keep track of the learners' progress while allowing them to manage their own learning. Furthermore, you are expected to encourage and assist the learners as they do the tasks included in the module. ii For the learner: Welcome to the Entrepreneurship Alternative Delivery Mode (ADM) Module on (Recognize a Potential Market). This module was designed to provide you with fun and meaningful opportunities for guided and independent learning at your own pace and time. You will be enabled to process the contents of the learning resource while being an active learner. This module has the following parts and corresponding icons: In this portion, objective of the new Let Us Learn! lesson will be introduced. This will give you an idea of the skills or Let Us Try! competencies you are expected to learn in the module through pre-test for the learners. Let Us Study This is where new lesson is introduced. This comprises activities for independent practice to solidify your understanding Let Us Practice and skills of the topic. You may check the answers to the exercises using the Answer Key at the end of the module. This section provides an activity which will Let Us Practice More help you transfer your new knowledge or skill into real life situations or concerns. This includes questions or blank Let Us Remember sentence/paragraph to be filled in to process what you learned from the lesson. This is a task which aims to evaluate your Let Us Assess level of mastery in achieving the learning competency. In this portion, another activity will be Let Us Enhance given to you to enrich your knowledge or skill of the lesson learned. Closing note of the relevance, meaning Let Us Reflect and application of the concepts and skills developed in the lesson to real life experiences. 3 References This is a list of all sources used in developing this module. The following are some reminders in using this module: 1. Use the module with care. Do not put unnecessary mark/s on any part of the module. Use a separate sheet of paper in answering the exercises. 2. Don’t forget to answer Let Us Try before moving on to the other activities included in the module. 3. Read the instruction carefully before doing each task. 4. Observe honesty and integrity in doing the tasks and checking your answers. 5. Finish the task at hand before proceeding to the next. 6. Return this module to your teacher/facilitator once you are through with it. If you encounter any difficulty in answering the tasks in this module, do not hesitate to consult your teacher or facilitator. Always bear in mind that you are not alone. We hope that through this material, you will experience meaningful learning and gain deep understanding of the relevant competencies. You can do it! 4  Let Us Try! Multiple Choice. Directions: Read the questions carefully and choose the letter of the correct answer. 1. What is called to the group of the people who will likely buy the goods and services? A. Potential Market B. Market Researchers C. Marketing Planners D. Location of the Market 2. It refers to the specific target market segment of a enterprise. A. Macro Environmental Sources of Opportunities B. Micro Market C. Industry Sources D. Micro Market 3. What kind of sources of opportunities that can be discovered from increased or decreased demand as well as higher or lower supply? A. Environmental Sources B. Industry Sources C. Market Sources D. Political Sources 4. Which of the following competition that belongs to indirect competition? A. Jollibee and Mc Donald’s B. Burger King and Pizza Hut C. Koppel and Carrier D. Ford and Toyota 5. The following are the macro environmental sources of opportunities, EXCEPT one. A. Ecological Environment B. Economic Environment C. Socio-Political Environment D. Technological Environment 6. One of the characteristics of entrepreneurs is to be innovative. What technique is used if one shows an endless curiosity to discover new or different ideas and see whether these ideas will work in the marketplace? A. Opportunity Seeking B. Opportunity Seizing C. Opportunity Screening D. Opportunity Sizing 7. It refers to the tastes of a group of people such as what clothes to wear or what food to eat. A. Consumer Needs B. Consumer Preferences 5  C. Suppliers Goal D. Suppliers Vision 8. It is one of the 12 R’s of opportunity screening that resonates with the entrepreneur’s personal interests, talents, and skills. A. Responsiveness to customer needs and wants B. Reinforcement of entrepreneurial interest C. Relative ease of implementation D. Revolutionary impact 9. This is the rivalry between companies selling similar products and services with the goal of achieving revenue, profit, and market-share growth. A. Competencies B. Competition C. Competitors D. Segmentation 10. What is the correct pattern to be considered in winning a customer? A. Battle of the Mind, Battle of the Wallet and Battle of the Heart B. Battle of the Heart, Battle of the Mind and Battle of the Wallet C. Battle of the Wallet, Battle of Heart and Battle of the Mind D. Battle of the Mind, Battle of the Heart and Battle of the Wallet Let Us Study Introduction Potential Market is the aggregate individuals, firms, and organizations in a certain market who have some level of interest in a product. The business proponent must be precise about the target audience or target customers. The unique selling proposition of the enterprise must rely on the sufficient size, paying capacity and sufficient interest to purchase of the target customers. What is an opportunity? In a business sense, it is an idea that has commercial potential. Something you can make money with, develop a business around it, or create value with it. OPPORTUNITY SEEKING/ANALYZED THE MARKET NEED Endless curiosity to discover new and different ideas and see whether these ideas will work in the market. Introduce new product or services or finding better way of making then. 6 THE MANY SOURCES OF OPPORTUNITIES/POTENTIAL MARKETS 1. Macro Environmental Sources of Opportunities 2. Industry Sources of Opportunities 3. Micro Market 4. Other sources MACRO ENVIRONMENTAL SOURCES OF OPPORTUNITY (SPEET) 1. Socio-Cultural Environment – includes the demographics and cultural dimensions that govern the relevant entrepreneurial endeavour. 2. Political Environment – it includes all the laws, rules and regulations that govern the business practices as well as the permits, approvals and licences needed to operate the business. 3. Economic Environment – pertains to the supply and demand forces that mainly drive the macro economic environment. 4. Ecological Environment – includes all-natural resources and the ecosystem, habitat of men, animals, plants, and minerals. 5. Technological Environment – new scientific and technological discoveries, which often lead to the launch and commercialization of new products with superior attributes. INDUSTRY SOURCES OF OPPORTUNITY The industry is competing in is important if the entrepreneur’s intention is to define the relevant customers, who are the direct and indirect competitors, and what are the critical characteristics of the market as to the quality of products or services to be delivered. PARTICIPANTS IN AN INDUSTRY INCLUDES: 1. Rivals or competitors in a business 2. Suppliers of input (e.g. fuel, electricity, raw materials) to rivals as well as suppliers of machinery and equipment, supplier of manpower and expertise, and supplies of merchandise. 3. Consumer market segments/sections being served by rivals or competitors. 4. Substitute products or services, which customers shift or turn to. 5. All other support and enabling industries. Product Chain – focuses on the volume produced or converted at each link of the chain. Value-Added Chain – focuses on the economic rather than the volume. MICROMARKET Refers to specific target market segment/section of enterprise. The need for segmentation would be crucial in micro-market analysis because definition of value for money is different from group to group. OTHER SOURCES OF OPPORTUNITIES 1. Customer preferences change over time. 7 2. People’s taste in clothes, music, shoes, entertainment, dance, sports, hobbies, and even careers have evolved over the years. 3. What piques/irritations customers is a great source of opportunities. 4. Before the customer is won over; there is first a battle for the mind. Next, there is a battle for the heart. Finally, there is a battle for the wallet. 5. The longer the customer wants to use the product, the greater the chances of creating lasting loyalty. 6. Opportunities abound in shaping consumer perceptions or occupying spaces in their minds or places in their hearts that have not yet been filled. 7. New inventions, new systems and new insights about human psyche, new application for old knowledge, new outlooks about how life should be led, and a host of new things are tremendous sources of opportunities. 8. Determining personal preferences and competencies lay the foundation for a new business venture. 9. Unexpected occurrences in both the external and internal environment of the enterprise indicate that significant changes are happening, and opportunities are sprouting. OPPORTUNITY SCREENING/DETERMINE THE POSSIBLE PRODUCTS AND SERVICES THAT WILL MEET THE NEED snakeoilmedicineshow.net What are Products and Services? 1. Product - is a tangible item that is put on the market for acquisition, attention, or consumption 8  metroworld.com.au 2. Service - is an intangible item, which arises from the output of one or more individuals. https://www.slideshare.net/sajinanair65/goods- and-services-23285549 After the opportunity seeking comes the rigorous process of Opportunity Screening, Because of the many opportunities and possible for entrepreneur, it is important to come up with a short list of a few very promising opportunities, which could be scrutinized in the detail. Consumer Preference – tastes of groups of people. ex. clothes people wear, food, music, and movie. Consumer Dislikes – things that irritate customers. Perceptions – what retains in their minds ex. safeguard – antibacterial soap 1. The Personal Screen  Do I have the drive to pursue this opportunity to the end?  Will I spend all my time, effort, and money to make the business opportunity work?  Will I sacrifice my existing lifestyle, endure emotional hardship, and forego my usual comforts to succeed in the business opportunity? 2. The 12 Rs of Opportunity Screening 9   Relevance to vision, mission, and objective of the entrepreneur – opportunity must be aligned to the personal vision, mission and objectives of the owner and the enterprise.  Resonance to values – the opportunity must match the values and desired virtues that the entrepreneur wants to set up.  Reinforcement of entrepreneurial interest – it is about how the opportunities resonate with the entrepreneur’s personal interests, talents and skills.  Revenues – it is the importance in determining the sales potential of the products or services that the business wants to offer.  Responsiveness to customer needs and wants – the opportunity that business wants to pursue to address the unfulfilled needs and wants of the customers.  Reach – the business expansion through branches, distributorships, dealerships, or franchise outlets to attain rapid growth of opportunities.  Range – opportunity that can potentially lead a wide range of possible product or services offerings, like tapping many market segments of the industry.  Revolutionary impact – the opportunity that will most likely be the “next big thing” or even a game-changer that will revolutionize the industry.  Returns – products with low costs of production but are sold at a higher price.  Relative ease of implementation – a business that is easy to implement and it has only few obstacles and competency gaps to overcome.  Resources required – business opportunities that requires fewer or lesser resources  Risks – there is always be risks in any entrepreneurial endeavour. 3. The Pre-Feasibility Study  Market potential and prospects  Availability and appropriateness of technology  Project investment and detailed cost estimates  Financial forecast and determination of financial feasibility Segmenting the Market Market segmentation is the market fragmentation process based on specific criteria for possible homogeneous groups of customer (market segments), requiring different marketing strategies to influence purchase made by buyers. Lifestyle - the typical way of life of an individual, group, or culture Benefit Segmentation Groups individuals in the marketing universe according to the benefits they seek from the product available in the market. Assessing Competition 10 Competition - the rivalry between companies selling similar products and services with the goal of achieving revenue, profit, and market share growth. 1. Direct Competition - is a situation in which two or more businesses offer products or services that are essentially the same; as such, the businesses are competing for the same potential market. 2. Indirect Competition - is the conflict between vendors whose products or services are not the same but that could satisfy the same consumer need. Let Us Practice DIRECTION: On the third column draw a star if the statement/s in column A matches with column B and if not, write the correct word/s that best describe the statement/s. A B C 1. An environment that refers to the governance systems of the country or the local area of business that Technological includes all the laws, rules and regulations that govern business practices. 2. The main purpose of expansion through branches, distributorships, dealerships, or franchise outlets to Reach attain rapid growth of opportunities. 11 3. It is an example of services that is being offered by a business On-line tutorial especially during this COVID 19 pandemic. 4. Things that irritate the customers. Consumer Preference 5. What kind of macro environment that includes natural resources and Socio-cultural the ecosystem, habitat of men, animals, plants, and minerals? 6. What R’s of opportunity screening that considers products with low Returns costs but being sold at a higher price? 7. A typical way of life of an Lifestyle individual, group, or culture 8. The business competition between Indirect Competition Coca-Cola and Pepsi 9. An opportunity must match with Relative ease of the desired virtues that the implementation entrepreneur wants to set up. 10. It is always part and parcel in every Risk business endeavor. Let Us Practice More Direction: For items 1 to 5, look at picture of the different companies and write in your answer sheets if the business offers products or services 1. ______________________________ 2. ______________________________ 12  3. ______________________________ 4. ______________________________ 5. ______________________________ Direction: For items 6 to 10, look at picture of the different companies and write in your answer sheets if the businesses are direct or indirect competitors. 6. vs. _________________________ 7. vs _________________________ 8. vs _________________________ 9. vs _________________________ 10. vs ___________________________ 13  Let Us Assess DIRECTION. Match Column I with Column II. Write the letter of your correct answer. Column I Column II A. Consumer Preferences 1. A specific target market segment of a enterprise 2. An opportunity screening which is B. Industry Sources substantially lead a wide area of possible product or services offerings, like tapping many market segments of the industry 3. The tastes of a group of people such C. Macro Environmental as what clothes to wear or what food to eat. D. Market Sources 4. Usually retains at the minds of the customers E. Micro market 5. Opportunity must be parallel to the personal vision, mission, and objectives of the owner F. Perception 6. This source can be discovered from increased or decreased demand as well as higher or lower supply. G. Range 7. Includes rivals or competitors, suppliers of input, consumer market segments and substitute products or services. H. Relevance 8. Most likely be the “next big thing” or even a game-changer 9. An intangible item, which arises from I. Revolutionary impact the output of one or more individuals. J. Service 10. Pertains to an environment that has large forces that affect the area, the industry, and the market which the business belongs to 14  Let Us Assess ENUMERATION. Direction. Enumerate the following. 1. Macro Sources of Opportunity Seeking a. S________________________________ b. P________________________________ c. E________________________________ d. E________________________________ e. T________________________________ 2. The 12’rs of Opportunity Screening: a. R_________________________________ b. R_________________________________ c. R_________________________________ d. R_________________________________ e. R_________________________________ f. R_________________________________ g. R_________________________________ h. R_________________________________ i. R_________________________________ j. R_________________________________ k. R_________________________________ l. R_________________________________ 3. Composition of Pre-Feasibility Study: a. ________________________________________ b. ________________________________________ c. ________________________________________ d. ________________________________________ 15  Let Us Enhance DIRECTIONS. List down all the products and services offered by different businesses in your locality. Follow the format below. PRODUCTS SERVICES Ex. Slippers Car wash Let Us Reflect 1. How can you connect the quotation of Ellen H. Gates to business opportunities? ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ 2. If you will become an entrepreneur, what kind of business you would like to venture? Is it selling goods or services or both? Why? ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ 3. In relation to our present situation, reflect about your personal struggles as well as some opportunities that can develop yourself despite of COVID 19 pandemic? ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ 16  17 https://www.media.philstar.com https://www.facebook.com/palawan.pawnshop/photos/ https://www.merriam-webster.com/dictionary/lifestyle https://www.slideshare.net/sajinanair65/goods-and-services-23285549 https://corporatefinanceinstitute.com/resources/knowledge/other/products-and-services/ http://www.businessdictionary.com/definition/potential-market.html Morato, Eduardo Jr., Entrepreneurship 1st Edition, Rex Printing Company, Inc. 2016 References Let Us Try Let Us Practice 1.1 Let Us Practice More Let Us Remember 1. A 1. Political 1. products 1. E 2. D 2. 2. services 2. G 3. 3. products 3. A 3. C 4. Consumer Dislike 4. services 4. F 4. B 5. Ecological 5. services 5. H 5. C 6. 6. direct 6. D 6. A 7. 7. direct 7. B 7. B 8. Direct Competition 8. indirect 8. I 8. B 9. Resonance to values 9. direct 9. J 9. B 10. 10. indirect 10. C 10. D Let Us Assess Let Us Assess Let Us Assess 3.a Market potential & 1.a. Socio-Cultural 2. f. Reach prospects b. Political g. Range b. Availability & c. Economic appropriateness of technology d. Ecological h. Revolutionary Impact c. Project investment & e. Technological i. Returns detailed cost estimates 2. a. Relevance d. Financial forecast & b. Resonance to values j. Relative ease of determination of financial c. Reinforcement of implementation feasibility entrepreneurial interest k. Resources Required d. Revenues e. Responsiveness l. Risks Answer Key 18