Entrepreneurship Module 3: Quarter 1 - Week 3 PDF

SHS Entrepreneurship Module 3: Quarter 1 – Week 3 Entrepreneurship Grade 12 Module 3: Quarter 1 - Week 3 First Edition, 2020 Copyright © 2020 La Union Schools Division Region I All rights reserved. No part of this module may be reproduced in any form without written permission from the cop...

SHS Entrepreneurship Module 3: Quarter 1 – Week 3 Entrepreneurship Grade 12 Module 3: Quarter 1 - Week 3 First Edition, 2020 Copyright © 2020 La Union Schools Division Region I All rights reserved. No part of this module may be reproduced in any form without written permission from the copyright owners. Development Team of the Module Author: Edwin M. Lucina, T-III Editor: SDO La Union, Learning Resource Quality Assurance Team Illustrator: Ernesto F. Ramos Jr., P II Management Team: ATTY. Donato D. Balderas, Jr. Schools Division Superintendent Vivian Luz S. Pagatpatan, Ph.D Assistant Schools Division Superintendent German E. Flora, Ph.D, CID Chief Virgilio C. Boado, Ph.D, EPS in Charge of LRMS Mario B. Paneda, Ed.D, EPS in Charge of Araling Panlipunan Michael Jason D. Morales, PDO II Claire P. Toluyen, Librarian II  Entrepreneurship Module 3: Quarter 1 - Week 3  Target Entrepreneur know thy market well! The above line is a simple reminder that keeps the entrepreneur alert all the time. The entrepreneur should always exert efforts to know the market he/she wants to exploit. The more he/she knows about the market the better he will be able to determine customers’ needs and wants. Entrepreneurs will be able to reach them wherever they are. This can be possible through conducting a good market research/analysis. To start a business, first thing to do is to find out what is the demand for the product or service by conducting a short market research. It is better to do market survey because they will then properly understand their customers’ needs and how their business should operate. if an idea is found to be feasible, this knowledge will in turn give confidence to go ahead when problems are encountered, knowing that their product is in demand. It is important to think in advance about the type of information that is needed and to ask people the same question each time, so that their answers can be compared and summarized. This should be a short exercise to keep the cost low and in-depth market research is not necessary for most products. This learner material will provide you with information and activities that will help you understand the market. After going through this module, you are expected to analyze market needs (CS_EP11/12ENTREP-0a-3-4), specifically to:  describe the unique selling proposition and value proposition that differentiates one’s products/services from existing products/services;  determine who customers are in terms of:  Target market;  Customers’ requirements; and  Market size  Validate customer-related concerns through:  Interview/survey;  Focused Group Discussion; and  Observation 2  Before you proceed further I want to know your personal idea about the reason why there is a need for market research/analysis? Answer it on a separate sheet of paper. Rubric for Scoring 4 3 2 1 Features (Expert) (Accomplished) (Capable) (Beginner) Quality of Answer was Answer was Answer had a Answer had no Writing written in an written in an little style or style or voice, extraordinary interesting style voice, gives gives no new style, very and voice, some new information informative somewhat information and very poorly and well informative and but poorly organized organized organized organized Grammar, Virtually no Few spelling A number of So many Usage and spelling, and spelling, spelling, Mechanics punctuation or punctuation punctuation punctuation grammatical error, minor and and error grammatical grammatical grammatical errors errors errors that interfere with the thought of the answer. RUBRIC for Scoring an Informal Essay http://www.google.search.com 3  Jumpstart In the previous module, you have learned how to explore the different job opportunities for entrepreneurship as a career. In this module, you will be learning how to analyze market needs. To lead you to understanding the lesson well, do the following activity! Activity1: Read Me! Understand Me! Direction: Read carefully about market analysis and the seven basic questions that you must ask in preparation for any major market analysis. Market Analysis is a quantitative and qualitative assessment of a market. It looks 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. “Marketplace Needs” is a marketing concept that relates to the functional or emotional needs or desires of a market. Main Customer Needs 1. Price-the amount of money that has to be paid to acquire a given product. It is a measure of value 2. Quality-it is the degree to which the product or service meets the customers’ expectation. 3. Choice-it the act of making or selecting a decision when faced with two or more products or service providers 4. Convenience-an element of customers’ experience that saves the customer time and effort Components of Market Analysis 1. Customer Description-person or company that receives, consumes or buys a product or service 2. Customer Perception-refers to customers’ awareness, their impressions and their opinion about a certain business, product, brand or service rendered 3. Market Trends-perceived tendency of financial markets to move in a particular direction over time 4. Market Projection-a core component of a market analysis. It projects the future numbers, characteristics and trends in your target market. 4  5. Market Competition-the rivalry between companies selling products or rendering services with the goal of achieving revenue, profit and market share growth. A convenient way of doing market survey is to prepare simple questionnaires which can be used by entrepreneurs to remind themselves of which questions to ask. Sample questionnaires for a new product (Tomato Jam) QUESTIONS ANSWERS 1. Do you eat other types of o YES jam? o NO 2. Which type of jams do you List the types like best? 3. Do you think you would like o YES tomato jam? o NO o NOT SURE 1 2 3 4 5 Very Good Average Bad Very Bad good 4. What do you think of the color of this tomato jam? 5. Do you like having the seed in you jam? 6. What do you think about the flavour of this jam? 7. Do you like the texture of the jam? 8. What do you think about the jar? 9. What do you think about the label? What else do you like about this jam? Is there anything that I can do to improve this jam? A. Direction: Encircle the letter that corresponds to your most accurate answer to each of the following questions. 1. Which of the following refers to the quantitative and qualitative assessment of the market? A. Market Projection C. Market Analysis B. Market Trends D. Market Competition 5  2. Which of the following refers to the perceived tendency of financial markets to move in a particular direction over time? A. Market Projection C. Market Analysis B. Market Trends D. Market Competition 3. Which of the following refers to the degree to which the product or service meets the consumers’ expectation? A. Price C. Choice B. B. Quality D. Convenience 4. All of the following are main customers’ need except? A. Price C. Perception B. Quality D. Convenience 5. Market Analysis look in all of the following except? A. economic environment in terms of barriers to entry and regulation B. various customer segments and buying patterns C. size of the market both in volume D. market perception B. Direction: Prepare a Survey Questionnaire for a new product/service you want to introduce. Criteria 4(Proficient) 3(Advanced) 2(Fair) 1(Poor) Questions are Questions Questions Questions perfectly made, match the fairly match fairly match match the various aspects the various the various various aspects of the topic of aspects of the aspects of the of the topic of the survey. topic of the topic of the the survey. survey. survey. Criteria for scoring the prepared survey questionnaire 6  Discover Basic Question in Market Analysis The following table shows the seven basic questions that you must be asked in preparation for any major market analysis. WHY Purpose and objective for conducting the market analysis WHAT Determines the scope and the limitations of the market analysis to be conducted WHICH Determines which segment of the market must be studied; this must be the market segment that the entrepreneur is eyeing WHO Identifies who among the members of the selected market segment will participate in market analysis WHEN Determines the time and timing of the research. This is critical for entrepreneurs whose product or service will be offered on a time- constrained markets such as office workers. WHERE Pinpoint the relevant location of the market research. HOW Determines the methodology to be used for market analysis. How to conduct a Market Analysis? 1. Determine the purpose of your study. 2. Look at your industry’s outlook. 3. Pinpoint target customers. 4. Compare your competition. 5. Gather additional data. 6. Analyze your findings. 7. Put your analysis into actions. Market Analysis Methodologies 1. Focus Group Discussion (FGD) is one of the most common qualitative research tools. It is effective in extracting consumer and non-consumer experiences regarding products, places or programs. This method can also be used for generating initial insights. FGD can be used to address substantive issues such as:  Understanding consumers’ perception, preferences, and behaviour concerning a product category;  Obtaining impressions on a product concept; 7   Generating new ideas about older products;  Developing creative concepts and copy material for advertisements;  Securing price impressions; and  Obtaining preliminary consumer reaction to specific marketing programs. Four Key Decisions to be made in FGD  Respondents Selection 1. Definition of respondents. 2. Classification of respondents; and 3. Screening of respondents  Sample size  Data gathering 1. Selection and preparation of the venue and equipment; 2. Formulation of the discussion agenda; and 3. Drawing out significant insights from the participant.  Data Analysis 1. Integration of the information gathered; 2. Some observations on respondent’s behaviour; and 3. Listing of recommendations and report writing. Nine steps in conducting FGD  Develop research objectives;  Determine the participants profile;  Determine the appropriate compensation/token for the participants;  Develop participants; screener questionnaire;  Recruit the participants;  Select good facilitator;  Develop facilitators discussion guide;  Arrange for the venue and logistics; and  Analyze the results of the FGD. 2. Survey/Interview is the most preferred instrument for in-depth quantitative research. The respondents are asked a variety of questions which are often about their personal information, their motivation and their behaviour. It can be conducted via telephone, mail or personal. 3. Observation technique is probably one of the best ways of gathering data about customers in their natural setting without having to interact or talk to them. 8 Methods of Generating New Product/Services 1. Focus Group A moderator leads a group of 8-14 participants through an open, in-depth discussion in a directive or non-directive manner. This is an excellent method for generating and screening ideas and concepts.it allows people to be stimulated to greater creativity. 2. Brainstorming Good ideas emerge when the brain storming effort focuses on a specific product or market area. Rules of Brain Storming:  No criticism of ideas or suggestions. Every idea even the wildest non-feasible idea is accepted;  Freewheeling discussion is encouraged;  Quantity of ideas is desired; and  Combinations and improvements of ideas are encouraged. 3. Problem Inventory Analysis Consumers are provided with a list of problems and are asked to identify products that have those problems. Results must be carefully evaluated as they may not actually reflect a new business opportunity. Sources of New Product/Services 1. Consumer Monitor potential ideas and needs from customers and formally arrange for consumers to express their opinions. 2. Existing Products and Services Analysis of Products and services uncovers ways to improve offerings that may result in a new product or service. 3. Distribution Channels Channel members can help suggest and market new products. 4. Government (patent office) Files of the Patent Office can suggest new product possibilities. 5. Research and Development Conduct research on your market and your customers’ needs. This results to the development and identification of new and improved product and services. 9 Generating New Product/Services for Conventional or Innovative Businesses Conventional ides can be taken from tried and tested business models like opening up a snack bar in competition with almost 100 others in a particular city. For innovative businesses, however, a product can be introduced that is not yet known to the market. Needless to say, it is where experimentation and boldness in business come in. 1. Conventional business scenario a. Start a business that you are familiar with; b. Start a business due to the needs of existing business contacts; c. Gain business inspiration from your hobby or interest; d. Gain inspiration from imported items; and e. Explore the possibility of import business. 2. Innovative business scenario a. Gain inspiration from the needs and wants of the costumers; b. Gain an inspiration from the problems and issues that bothered you and your peers; c. Study the usual or existing solutions and venture in the alternative solution; and d. List down existing products and find out their other uses from what was stated. Explore Activity1: On a separate sheet of paper answer the following: I. Direction: Choose the letter that corresponds to your most accurate answer in each of the following. 1. Which of the following questions is asked when the researcher laid out the purpose and objective of conducting market analysis? A. How B. What C. Where D. Why 2. Which of the following research methods is considered as one of the best ways of gathering data about customers in their natural setting without having to interact or talk to them? A.FGD B. Survey C. Interview D. Observation 10 3. Which of the following is NOT a market research method? A.FGD B. Brainstorming C. Survey D. Observation 4. All the following are methods of generating new products or services except? A. Brainstorming C. Observation B. Focus Group D. Problem Inventory analysis 5. Which of the following is NOT a key decision made before conducting FGD? A. Respondent selection C. Data analysis B. Data gathering D. Conduct of a research II. Direction: Classify whether the given scenario is for conventional business or innovative business. Write C if it is for conventional business and I if it is for innovative business. 1. Start a business due to the needs of existing business contacts. 2. Study the usual or existing solutions and venture in the alternative solution. 3. Gain business inspiration from your hobby or interest. 4. Explore the possibility of import business. 5. Gain inspiration from the needs and wants of the costumers. III. Direction: Identify the product or service which you would want to introduce and classify whether this product or service is a conventional or and innovative business. ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ 11  Explore Survey of Market Size and Value A different set of questions is needed when assessing the size of the market for a particular type product and the value of the market (the amount of money spent on that product or service type each month or year). At the same time it is possible to gather information about the types of people who buy a particular product or service and where we can avail them. The information gathered from potential consumers can be analysed by the entrepreneur to get a good idea of the quality characteristics of the product/service that consumers prefer, the total demand for the product and the total value of the market. This involves making a number of assumptions and it is important to consider the following:  are the people interviewed really representative of all potential;  was the number of people interviewed enough? and  were people giving accurate information? Below is a sample questionnaire about market size and value: Questions Answers About the market size: 1. How often do you buy this product? o Daily o Weekly o Monthly 2. Do you buy different amounts at different o Yes times of the year? o No 3. When are the times that you buy them Specify:____ most? 4. How much do you buy each time? ___ pc 5. When are the times you buy the least? 6. How much do you buy each? ___ pc 7. what is the amount of food in the pack? ___ Php/___pc About the market value: 8. How much do you pay for a pack of food? ____ Php 9. What is the price difference for larger or ____ Php smaller pack? 10. Does the price change at different times o Yes of the year? o No 11. When is the price highest? ____ Php 12  About the costumers: 12. Would you say that you have a low, o Low medium or high income? o Medium o High 13. To which group do you belong? o 1-20 o 21-40 o 41-60  Male  Female About sales outlet: 14. Where do you usually buy this food? o Food store o Local shop o Kiosk o Supermarket Enrichment Activity 1: Direction: Make/Prepare a survey questionnaires about market size and value for the product which you would like to sell. 4(Proficient) 3(Advanced) 2(Fair) 1(Poor) Questions are Questions Questions Questions perfectly made, match the fairly match fairly match Criteria match the various aspects the various the various various aspects of the topic of aspects of the aspects of the of the topic of the survey. topic of the topic of the the survey. survey. survey. Criteria for Scoring the prepared survey questionnaire Market share and competition Market surveys and calculation of market size and value are important to find out whether the demand for a product really exists. It is therefore important from the outset, to estimate the proportion of the total market that a new business could reasonably expect to have. This is referred to as market share. It is often difficult to estimate a realistic market share. The figure depends on a large number of variables. 13  In many cases, new entrepreneurs over-estimate the share that they could expect, with the results that production operates at only a small proportion of the planned capacity. This figure should not be assumed to represent the scale of production that could be expected. Even if no one else is currently making a product locally.it is likely that once a new business starts production and is seen by others to be successful, they too will start up in competition. Example: Estimates of market share for a new food business with different levels of competition No. of other Many Few One producers Size of None Large Small Large Small Large Small competitors Product Range S D S D S D S D S D S D Market share 0- 0- 5- 10- 0- 5- 10- 20- 0- 10- 30- 40- 100 (%) 2.5 5 10 15 2.5 10 15 30 5 15 50 70 S=similar products D=dissimilar product Enrichment Activity 2: Direction: On a separate sheet of paper, follow the format presented below to prepare an estimate share for the product you want to introduce. No. of other Many Few One producers Size of None Large Small Large Small Large Small competitors Product S D S D S D S D S D S D Range Market share (%) S=similar product D=dissimilar product 14 Competitors Competitors are very important to the success or failure of a new business. The entrepreneur should recognize that there are different types of competitors.  General competitors  Type competitors  Brand competitors They also compete with the profit margin and level of service that they offer to the retailers and with special offers or incentives to costumers. New entrepreneurs must therefore assess each of these factors using a Strength, Weakness, Opportunities and Threats (SWOT)analysis. Example of a SWOT Analysis of a New Business in Relation to Competitors My proposed Competitor A Competitor B business Strengths Production likely to Good brand image Product is cheaper be sited close to and range of than A and sells retailers that can products well. They offer deliver at short good margin notice retailers. Weaknesses Difficult to find Products are more Poor quality good packaging expensive than B. product, poor label Uses synthetic designs. I’m told by colours and my retailers that preservatives supplies are irregular and not always the amount ordered. Opportunities Retailers may Strong Promotion Appears to be demand for expanding products without deliveries to new additives is areas according to increasing. I can newspaper reports produce without added colors. Threats There are few Cheaper products May have over- wealthy consumers that B. expanded and price is most distribution important factor network and failing to make deliveries. (adapted from: Starting a Small Food Processing Enterprise, by Fellows, Franco and Rios) 15 Enrichment Activity 3: Direction: Prepare a SWOT analysis of the product you want to introduce in the market, follow the format given below(Use a separate sheet of paper). My Proposed Competitor A Competitor B Business STRENGTHS WEAKNESSES OPPORTUNITIES THREATS Rubric for Scoring 4 3 2 1 A thorough SWOT A SWOT analysis A SWOT analysis A SWOT analysis analysis was was performed. All was performed. was performed but performed. All four four areas were Some of the four none among the areas were addressed. areas were not four areas was not addressed addressed. addressed. thoroughly and with great details to specific in a visually appealing way. 16  Deepen Activity 1: Direction: Satisfy the demand of the following. Use a separate sheet of paper for this. 1. What do you mean by determining who your customers are in terms of: A. target market? B. customers’ requirements? C. market size and value? 2. Validate customer-related concerns through observation, focused group discussion or survey/interview. Gauge I. Direction: Read each item carefully and write the letter of the correct answer on your answer sheet. 1. Which of the following refers to the quantitative and qualitative assessment of the market? A. Market Projection C. Market Analysis B. Market Trends D. Market Competition 2. Which of the following refers to the perceived tendency of financial markets to move in a direction over time? A. Market Projection C. Market Analysis B. Market Trends D. Market Competition 3. Which of the following refers to the degree to which the product or service meets the consumers’ expectation? A. Price C. Choice B. Quality D. Convenience 17  4. All of the following are main customers’ need except? A. Price C. Perception B. Quality D. Convenience 5. Market Analysis look in all of the following except? a. economic environment in terms of barriers to entry and regulation b. various customer segments and buying patterns c. size of the market both in volume d. market perception 6. Which of the following questions is asked when the researcher laid out the purpose and objective of conducting market analysis? A. How C. Where B. What D. Why 7. Which of the following research methods is considered as one of the best ways of gathering data about customers in their natural setting without having to interact or talk to them? A. FGD C. Interview B. Survey D.Observation 8. Which of the following is NOT a market research method? A.FGD C. Survey B. Brainstorming D. Observation 9. All the following are methods of generating new products or services except? A. Brainstorming C. Observation B. Focus Group D. Problem Inventory analysis 10. Which of the following is NOT a key decision made before conducting FGD? A. Respondent selection C. Data analysis B. Data gathering D. Conduct of a research II. Direction: On your answer sheet, write T if the statement is correct and F if otherwise. 11. It is better to do market survey because it will make the entrepreneur properly understand the needs of the customers and how they operate the business. 12. Focus group as a method of generating new products/services, good ideas emerge and effort focuses on a specific product or market area. 13. Market surveys and calculations of market size and value are important to find out whether the demand for a product really exists. 14. Competitors are not so important to the success and failure of a new business. 15. For innovative businesses, a product that can be introduced is not yet known in the market. 18 III. Direction: Answer the following question briefly. Why is market analysis/research being done? Rubric for Scoring Features 4 3 2 1 (Expert) (Accomplished) (Capable) (Beginner) Quality of Answer was Answer was Answer had a Answer had no Writing written in an written in an little style or style or voice, extraordinary interesting style voice, gives gives no new style, very and voice, some new information informative somewhat information and very poorly and well informative and but poorly organized organized organized organized Grammar, Virtually no Few spelling A number of So many Usage and spelling, and spelling, spelling, Mechanics punctuation or punctuation punctuation punctuation grammatical error, minor and and error grammatical grammatical grammatical errors errors errors that interfere with the thought of the answer. RUBRIC for Scoring an Informal Essay http://www.google.search.com 19 Key Answers JUMPSTART Activity 1 : A. 1.C 2.B 3.B 4.C 5.D B. Discover Activity 1: I. 1. D 2. D 3. B 4. C 5. D II. 1. C 2. I 3. C 4. C 5. I Explore Enrichment Activity 1: Enrichment Activity 2: Answers vary Enrichment Activity 3: Deepen Activity 1: Refer to the scoring rubric under Target Gauge I. 1. C 3. B 5. D 7. D 9. C 2. B 4. C 6. D 8. B 10. D II. 11.T 12.T 13.T 14.F 15.T 20 Scoring Rubrics Features 4 3 2 1 (Expert) (Accomplished) (Capable) (Beginner) Quality of Answer was Answer was Answer had a Answer had no Writing written in an written in an little style or style or voice, extraordinary interesting style voice, gives gives no new style, very and voice, some new information informative somewhat information and very poorly and well informative and but poorly organized organized organized organized Grammar, Virtually no Few spelling A number of So many Usage and spelling, and spelling, spelling, Mechanics punctuation or punctuation punctuation punctuation grammatical error, minor and and error grammatical grammatical grammatical errors errors errors that interfere with the thought of the answer. RUBRIC for Scoring an Informal Essay http://www.google.search.com 4(Proficient) 3(Advanced) 2(Fair) 1(Poor) Questions are Questions Questions Questions perfectly made, match the fairly match fairly match Criteria match the various aspects the various the various various aspects of the topic of aspects of the aspects of the of the topic of the survey. topic of the topic of the the survey. survey. survey. Criteria for Scoring the prepared survey questionnaire http://www.google.search.com 21  4 3 2 1 A thorough SWOT A SWOT analysis A SWOT analysis A SWOT analysis analysis was was performed. All was performed. was performed but performed. All four four areas were Some of the four none among the areas were addressed. areas were not four areas was not addressed addressed. addressed. thoroughly and with great details to specific in a visually appealing way. Rubric for Scoring a Prepared SWOT analysis http://www.google.search.com 22 REFERENCES: Printed Materials: De Guzman, Angeles A, (2018).Entrepreneurship for SHS. Quezon City, Philippines: Lorimar Publishing ,Inc. Morato, Eduardo A, (2016).Entrepreneurship. Manila, Philippines :Rex Publishing, Inc. Website http://www.google.search.com 23