Learning Module

Entrepreneurship G11  Q1.3

RECOGNIZING POTENTIAL
MARKET

GENECOM INSTITUTE OF SCIENCE AND TECHNOLOGY, INC.

GENECOM LEARNING AND TUTORIAL CENTER
LIBON PRIVATE HIGH SCHOOL, INC.
September 2021

Name: ______________________________________________Strand:
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 INTRODUCTION AND OBJECTIVES

 Module Introduction and Focus Questions

Have you ever ask yourself if you want to operate or to
have a business? If yes, what are the steps for us to have a
successful business? What are the pros and cons in opening a
business? These are sample questions that need to be answered
in starting business.

 Module Lesson and Coverage

Recognizing Potential Market

This module is designed for you to:

1. Analyze the market needs

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 Pre-Test
I. Read the statements carefully. Circle the letter of
the correct answer.

1. It is the study of a population based on factors such as age,

race, and sex.
a. Threats c. Demographic
b. Strategy d. Goals

2. It is an entrepreneur’s business idea that can potentially

become a commercial product or service in the future.

3. a. Environmental Scanning c. Industrial Analysis

4. b. Opportunity d. Blue Ocean

Strategy

3. Is a written document describing a company's core

business activities, objectives, and how it plans to achieve
its goals?

4. a. Strength and Weakness c. Strategy

5. b. Opportunities and threats d. Business Plan

4. It is the money you use to finance the purchase of

equipment, supplies and products
a. Strength and Weakness
b. Opportunities and Threats
c. Strategy
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 d. Capital

5. ___________ make up its share of the available market.

a. Environmental Scanning c. Target Customers
b. SWOT Analysis d. Blue Ocean
Strategy

II. Look for at least 1 product specialization of the

following
provinces
Albay: _______________________________________________
Catanduanes: ________________________________________
Camarines Sur: ________________________________________
Camarines Norte: _____________________________________
Sorsogon: _____________________________________________
Masbate: _____________________________________________

Content/

Discussion
Recognizing Potential Market

Market, Definition and Types of Market

A market can be defined as a place where buyers and sellers
meet to exchange goods, services and other relevant information
is called market. Both these parties can meet in a city, state,
province, country, and region. The market may be a physical or
virtual.

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 The one party (seller) sells a product or service to a buyer
for money benefits. Most of the time there are more than single
buyers and seller in the marketplace. The value and prices of
product and services are based on the law demand and supply in
the market.

Potential Market

Your potential market includes the demographic groups that

are not currently your customers but could become customers in
the future. They might become your customers because you
expand your available products or services, or because you
begin marketing your current products and services in a new way
and to new groups of buyers.

Potential markets are important part of a business's future

growth. Every business has a set of target customers that make
up its share of the available market. While you can continue
selling to these customers in the future, one of the best ways to
grow your business is to identify potential markets that you can
begin targeting.

Potential markets allow you to:

 Ensure the future of your business by identifying new

customers.
 Think proactively about ways for your business to grow and
change.
 Show the potential of your business to investors or
collaborators.
 Increase your revenue.

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  Create a plan B that will weather changes in the economy
or market.

Demographics

Demographic analysis is the study of a population based

on factors such as age, race, and sex. Demographic data refers
to socioeconomic information expressed statistically including
employment, education, income, marriage rates, birth, and death
rates, and more.

Why do businesses need demographics?

Demographics are key to businesses today. They help
identify the individual members of an audience by selecting key
characteristics, wants, and needs.

 What other products do my customers need now?

 What related products will they need in the future?
 Who else could make use of the products I am selling now?
 What demographic information does that new group have
in common with my current customers?
 What demographic information does that new group have
in common with each other?

Activity 1

Identify products in the market and be able to define

the demographic category for each.

1. Car Cleaning Tools

Age – Working Individual/Young Professional/ New Car

Owners
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 Gender - Male or Female who can drive
Income – Young Professional/Working Individuals earning
above average monthly income
2. Product: _____________________________________________

Age Group:

Gender:

Income:_______________________________________________
3. Product: _____________________________________________

Age Group:

Gender:

Income:

THE ENTREPRENEURIAL PROCESS

1. Opportunity spotting and assessment

Process of considering, evaluating, and pursuing market-

based activities that are believed to be advantageous for the
firm. Prior experience informs the process, but it may also
limit it: opportunity seeking calls for continuous
reconsideration and adaptive learning. If you actively seek
opportunities, you will find new products for old markets or
customers.

2. Developing a business plan

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 A business plan is a written document describing a
company's core business activities, objectives, and how it
plans to achieve its goals. Good business plans should
include an executive summary, products and services,
marketing strategy and analysis, financial planning, and a
budget

3. Determining the capital needed

Capital is money you use to finance the purchase of

equipment, supplies and products. Working capital is
money you use to cover the day-to-day operating costs of
your business. You must consider both when determining
your business’s fiscal needs.

4. Running the business

In this process, it may be wise to differentiate

between whether the business serves a personal why or a
marketplace why. When your why is focused on meeting a
need in the marketplace, the scope of your business will
always be larger than a business that is designed to serve
a personal need.

Activity 2

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 Explain the significance of each
entrepreneurial process in creating a Business
Idea/Opportunities.

1. Opportunity spotting and assessment

2. Developing a business plan

3. Determining the capital needed

4. Running the business

SCANNING THE MARKETING ENVIRONMENT

Is an analysis of our surrounding to determine what kind of

approach we need to use in the conduct of business. Strategy is
the way we need to do for us to attain our goal.

IMPORTANCE OF ENVIRONMENTAL
SCANNING

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  It clearly portrays the trends, activities and development in
the micro and macro environment.

 It identifies the expected threats and opportunities existing

in the environment

 It points out the possible factors that will determine the

success of the venture.

 It helps define the future path of the business.

Identify Analyze the

Business Environment
Goals

Identify
Business
Opportunities

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 Analyze the
Organizations

Identify the
Formulate
strengths and
Strategies
weaknesses

Implement
Strategies

Evaluate
Results

Figure 1. Environmental
Scanning
ENVIRONMENTAL SCANNING

Environmental scanning is a process that

systematically surveys and interprets relevant data to identify
external opportunities and threats that could influence future
decisions. It is closely related to a S.W.O.T. analysis and should
be used as part of the strategic planning process.

S.W.O.T ANALYSIS

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 ACTIVITY 3 Seeking
Opportunity
List at least 5 business opportunity in your local
community that will answer market needs.

Example:

Scallops Shells – community lives nearby seas coastal has

abundant scallops’ shells, with this, we can seek business idea
that will make this one a profitable business.

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Opportunity – can make decorations out of shells.

1. Product Idea:

Opportunity:

2. Product Idea:

Opportunity:

3. Product Idea:

Opportunity

4. Product Idea:

Opportunity

5. Product Idea:

Opportunity:

Entrepreneurial Tips:

“Find the opportunity first before coming up with

a new product or service in the future”.

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Generalization
Key Takeaways
 Post test
TRUE or FALSE. Write T if the statement is TRUE and F
if the
statement is FALSE.

_____1. Analyzing the environment is the 1st step in

Environmental
Scanning.

_____2. Opportunity is an external characteristic of the business.

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_____3. We need to analyze the environment first before we
identify
the external characteristics.

_____4. Every business has a set of target customers that make

up
share of the available market.

_____5. Implementing strategies comes first before formulating it.

_____6. Weakness is an external characteristic of the business.

_____7. A market can be defined as a place where buyers and

sellers meet to exchange goods, services and other
relevant
information is called a market.

_____8. Potential market allows you to increase your revenue

_____9. We need first to analyze the organization’s resources

before
analyzing environment.

____10. Before you start a business, know your goals first.

To further enhance your understanding of

Analyzing market need, Visit:

http://informationr.net/ir/7-1/paper112.html

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https://www.mindtools.com/pages/article/newTMC_05.htm

This website is an additional information about S.W.O.T

Analysis

REFERENCES
Book:

Banastao, Cristina B., et al., Entrepreneurship, KATHA Publishing Co.,

Inc. 2008, p. 62 - 69

https://www.marketingtutor.net/what-is-a-market/

https://www.thebalancesmb.com/identifying-opportunity-in-new-
potential-markets-4043634

https://www.investopedia.com/terms/d/demographics.asp

https://askinglot.com/what-is-opportunity-seeking-and-initiative

https://www.google.com/search?
q=developing+a+business+plan&oq=developing+a+business+plan&
aqs=chrome..69i57j0i20i263i512j0i512l8.5966j0j15&sourceid=chrome
&ie=UTF-8

https://www.alamy.com/stock-photo-drawing-flat-design-illustration-
stock-market-concept-concepts-for-148276328.html

http://informationr.net/ir/7-1/paper112.html

https://sinagonline.com/1-2

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