C arpentry 9

Prepared by:
LAURENCE C. FABIALA
 ENVIRONMENT AND MARKET

CARPENTRY 9
Module
Module

3 ENVIRONMENT AND MARKET

CONTENT STANDARD

The learner independently

demonstrates the core competency in
carpentry as prescribed by TESDA
Training Regulations.
 The learner demonstrates an understanding of the concepts environment and
market in the field of carpentry, particularly in one’s town/municipality.

PERFORMANCE STANDARD

 The learner independently creates a business vicinity map reflective of the

potential carpentry market within the locality/town.

LEARNING COMPETENCIES

LO 2. Recognize the potential customer/market in Carpentry

2.1 Identify the profile of potential customers
2.2 Identify the customer’s needs and wants through consumer analysis
2.3 Conduct consumer/market analysis

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Lesson
Lesson
Key concepts in Identifying and
1 Understanding the Consumer

This lesson will tell you about the key concepts in identifying and understanding the consumer
. After going through this lesson, you are expected to:
 identify the difference between needs and wants
 explain what customer needs & wants.

What Do You Already Know?

Let us determine how much you already know take this test.

Direction: Read and answer the following question below. Encircle the letter of the best answer.

1. Which means a person who is a purchaser, lessee, recipient or prospective purchaser, lessor
or recipient of consumer products, services or credit?
A. Customer C. Producer
B. Employer D. Supplier
2. Which is the most basic needs that are vital to survival, such as the need for water, air, food,
and sleep?

A. Esteem Needs C. Security Needs

B. Physiological Needs D. Self-actualizing Needs

3. What things without which we would not be alive?

A. Desire C. Pleasure
B. Needs D. Wants
4. Which of the following is something that a person desires, either immediately or in the
future?
A. Desire C. Pleasure
B. Needs D. Want
5. Who developed the different levels of needs?
A. A.B Maslows C. Karl Marx
B. Auguste Comte D. McClelland

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What Do You Need to Know?

In our previous lesson you have learned the key concepts of Environment and Market, Players in
the market which focused on your competitors and lastly the different products & services
available in the market. In continuation read comprehensively and study carefully lesson 1 then
find out how much you can remember and how much you learned by doing the activities below.

Let us first define consumer. What is Consumer?

 According to Republic Act No. 7394 “Consumer” means a natural person who is a
purchaser, lessee, recipient or prospective purchaser, lessor or recipient of consumer
products, services or credit.
 According to Schiffman & Kanuk (1997: 6-7), two different types of consumers can be
distinguished, namely personal and organisational consumers. Personal consumers
purchase products and services for personal or household use or as a gift to someone
else. Personal consumers, therefore, purchase for final consumption. Organisational
consumers on the other hand purchase products and services to run an organisation,
including profitable and non-profitable organisations, government organisations and
institutions.
The success of a retail strategy depends on how well a firm identifies and
understands its customers and how well it forms a strategy mix to appeal to them. This
entails identifying consumer characteristics, needs and attitudes; recognising how people
make decisions; and then devising the proper target market plan.
Needs and wants of people are the basic indicators of the kind of business that you
may engage into because; it can serve as the measure of your success. Some other good
points that you might consider in business undertakings are the kind of people, their
needs, wants, lifestyle, culture and tradition, and social orientation that they belong.
Wants vs. Needs
Two people could argue for hours about whether a given product or service is a need.
Obviously, circumstance and frames of reference are important in this discussion. What
one person needs, another person wants. Also, there are a variety of ways to meet a need
or a want.
For example, we all need to eat. But does that mean we need to eat a filet mignon
with fresh steamed vegetables and a nice glass of white wine? While at first glance it's
easy to assume the difference between wants and needs, when you really start getting
into it, the differences can be difficult to articulate.
Needs
These are the obvious things that every person needs to stay alive. It includes food,
water, shelter, clothing and not much else in this category. These are the things without
which we would not be alive. A need is generally referred to, in economics, as something
that is extremely necessary for a person to survive. If a need is not met, it would lead to
the onset of disease, the inability to function effectively and efficiently in society and even
death. Needs are categorized into two groups. There are physical needs and Subjective
needs. Physical needs are those that are met through tangible things or things that could
be measured. Examples of these include food, water, shelter and even air. On the other

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hand, subjective needs are those that are often seen to ensure our mental health.
Examples of these are self-esteem, a sense of security and approval.
Different levels of Needs A.B. Maslows
 Physiological Needs The most basic needs that are vital to survival, such as the need for
water, air, food, and sleep
 Security Needs These include needs for safety and security. Examples: steady
employment, health insurance, safe neighbourhoods, and shelter from the environment.
 Social Needs Belonging, love, acceptance and affection. Example: friendships,
romantic companionship, involvement in social, community, or religious groups.
 Esteem Needs The need for things that reflect on self-esteem, personal worth, social
recognition, and accomplishment.
 Self-actualizing Needs The need for personal growth without recognition or the opinions
of others. Interest in fulfilling ones potential.
Wants
A want is something that a person desires, either immediately or in the future.
Unlike needs, wants are those that differ from one person to another. For example, one
person may want to own a car, while another may want to travel to an exotic country.
Each person has his or her own list of wants, each with a varying level of importance.
Furthermore, wants can change over a period of time. This is in contrast to needs, which
remain constant throughout the lifetime of the person
How to Know What a Customer Needs & Wants?
It's vital to try to understand your target market’s array of choices. If you walk a mile in your
customer’s shoes, you'll know what they need and want.
1. Identify Your Target Markets
Detailed research on a store's customers enables a business to understand which
approaches work best. For example, if your target market is made up of senior citizens,
that would require a different marketing approach, different products and different
services from those that a preteen would want. Many similarities do exist, however,
among the various key demographics in your target market. Target identifiers such as
profession and professional level of income; where they live; any hobbies or recreational
activities; and age, as well as gender and orientation, all inform a business as to which
characteristics are shared, and which characteristics marketers should appeal to.

2. Establish How Customers Shop

Some customers prefer to do their research online and then they purchase online,
as well. Others will research and choose their products, but will prefer to buy them in
brick-and-mortar stores. Still, others want to shop the old-fashioned way and do
everything in the store. This is also when there is potential for establishing how they
shop, as to whether it is a spur-of-the-moment, impulse purchase or is a purchasing
decision that has resulted from a measured, cautious decision. Studying these patterns
will enable businesses to know how to lay out their stores, both virtual as well as brick-
and-mortar stores.

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3. Understand why customers buy what they buy

Identifying which customer types make up your target market and then
establishing how they shop, will inform you as to why customers buy the products they
buy. A customer’s motivation to buy certain products is based on several possible
factors:
a) Do customers favor particular brands over generic counterparts?
b) Do they watch their money very, very carefully?
c) Do they make choices based on impulsive or emotional needs, such as buying to
keep up with the latest trends and fashions?
Getting to the root of these questions enables a company to promote what works
and to do away with what isn’t as cost efficient. Maximizing the number of things offered
that suit what customers want is the key to lasting in business.
4. Listen to What Customers Say
Customers speak with their dollars but they also speak loudly on social media and
in person. As tough as it can sometimes be to hear critiques of the goods or services you
offer, it is invaluable information that no marketing strategy can give you. It’s also
important to find out what people think of your competitors' offerings because you may
be able to take advantage by offering something they're lacking.
Knowing what a customer wants is now more important than ever, because there's
more competition in the marketplace. Some 50 years ago, the only real competition was
from shops in the same zip code, but consumers now can purchase what they need from
nearly anywhere in the world. Consumers now are less loyal and more discerning than in
the past. Staying on top of what customers are asking for and anticipating what they
haven't actually stated as a want, is the key to financial success
oTH
How Much Have You Learned?

Activity 1: True or False Direction: Analyze the following statement. Write TRUE if the
statement is correct and FALSE if the statement is incorret.

___________1. The success of a retail strategy depends on how well a firm identifies and
understands its customers and how well it forms a strategy mix to appeal to them.
___________2. You need a place to live, clothes to wear, and enough food and water to maintain
your health—these are dispensable need.
___________3. Needs and wants of people are the basic indicators of the kind of business that
you may engage into because; it can serve as the measure of your success.
___________4. A need is generally referred to, in economics, as something that is extremely
unnecessary for a person to survive
___________5. Wants are those that simillar from one person to another
___________6. Detailed research on a store's customers enables a business to understand which
approaches work best.
___________7. Categorizing what shopper styles make up your target market will notify you as to
why customers buy the products they buy
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___________8. Knowing what a customer needs is more important than ever, because there's
more competition in the marketplace.
___________9. Eating an expensive meal at a high-end restaurant qualify as a need.
___________10. Wants and needs are two different words whose meanings are both well
understood and also conveniently interchanged — depending on our desires and
motivations.
Activity 2: Mini Survey Direction: Conduct a mini survey in your immediate community. Gather
pertinent data on the population across age bracket as suggested in the matrix below. Opposite
each age group, indicate their probable needs and wants.

Age Bracket Population Needs Wants

Example: 35 Toys, coloring Wooden toys, glossy
5 and below books, pajama coloring books, etc.
fashionable pajama
6- 10 years old
11-15 years old
16-20 years old
21-25 years old
26-35 years old
35-45 years old
46-55 years old
56-65 years old
66 and above

Activity 3: Directions: After filling out the chart above, try to list down all the probable business
opportunities which you may wish to venture in.

What business opportunities which you may wish to venture in?

______________________________________________________________________________________________
______________________________________________________________________________________

Why do you choose such business opportunities?

______________________________________________________________________________________________
______________________________________________________________________________________

How will you going to promote your product in the market?

______________________________________________________________________________________________
______________________________________________________________________________________

Lesson
Lesson
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1 Generating Business Ideas

 ENVIRONMENT AND MARKET

This lesson will tell you about the key concepts in identifying and understanding the consumer
. After going through this lesson, you are expected to:
 Clearly explain any business idea that comes to your mind
 Identify potential sources of business ideas and create an idea list
 Shortlist and then select the best idea to pursue in order to start your own business

What Do You Already Know?

Let us determine how much you already know take this test.

Direction: Read and answer the following question below. Encircle the letter of the best answer.

1.Which businesses uses raw materials, such as leather, waste material, wood, cloth or metal
and make new or different products out of those materials?
A. Manufacturing C. Services
B. Retail D. Wholesale
2. Which means opening up your mind and thinking about many different ideas?
A. Brainstorming C. Screening ideas
B. Field Styd D. SWOT Analysis
3. Which businesses buy large quantities of certain goods from manufacturers and resell those
goods to retail outlets, who then resell them to individual consumers?
A. Manufacturing C. Services
B. Retail D. Wholesale
4. Which of the following study undertaken by an organization to identify its internal strengths
and weaknesses, as well as its external opportunities and threats?
A. Brainstorming C. Screening ideas
B. Field Styd D. SWOT Analysis
 5. Which method is used for collecting data about users, user needs, and product
requirements that involves observation and interviewing?
A. Brainstorming C. Screening ideas
B. Field Styd D. SWOT Analysis

What Do You Need to Know?

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As you know all businesses start with a business idea that comes from the entrepreneurial
brain. It is the part of the process how you generate business ideas. If the business potential
energy of your business idea is at a higher level, the higher will be your overall business
potential energy.

The business idea is the first step in business startup. But, one thing that can dramatically
increase your business potential energy of your business ideas is if the business idea itself
match your skills and your passion for something.
 What makes a business idea?
A business idea is a short and precise description of the basic operation of an intended
business. Before you start a business, you need to have a clear idea of the sort of business you
want to run. Your business idea will tell you:
 Which need will your business fulfil for the customers and what kind of customers will
you attract?
 What good or service will your business sell?
 Who will your business sell to?
 How is your business going to sell its goods or services?
 How much will your business depend upon and impact the environment?
A good business idea will be compatible with the sustainable use of natural resources and will
respect the social and natural environment on which it depends.
1. Which need will your business fulfil for the customers?
Your business idea should always have customers and their needs in mind. It might be a good
idea to start a day care centre in the commercial area as many other parents may have the
same need. It might be a good idea to start a waste collection and recycling service in this area.
Not only would the owner of this restaurant need the service, but many other residents in the
area might need it as well.
2. What good or service will your business sell?
Depending on your skills and the needs of the customers, you should decide which good or
service your business will sell. Also, keep in mind that they must be goods or services that
people are willing to pay for and at a price that will allow you to make a profit. A good is an item
that people pay for and use. It may be something you make yourself or it may be something you
buy to resell. Tools, baked goods, clothes and retail items are all products . A service is
something you do for people that they then pay you for. For example, delivering goods, banking,
babysitting, repairing items, collecting recyclable waste from apartment buildings, operating
tours, etc. are all services.
3. Who will your business sell to?
Any business cannot succeed without customers. Therefore, it is essential that you know who
your customers will be. Will you sell to a specific type of customer or to everyone in an area?
There must be enough people who are able and willing to pay for your goods and services or the
business will not survive.
4. How is your business going to sell its goods or services?
How are you going to sell your goods or services? If you plan to open a shop, you know how you
will sell your product, but manufacturers or service operators can sell their products in many
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different ways. A manufacturer, for example, can sell either directly to customers, to retailers or
to wholesalers.
There are four main types of businesses:
• Manufacturing: Manufacturers are businesses that use raw materials, such as leather,
waste material, wood, cloth or metal and make new or different products out of those
materials.
• Service: Service providers are people whose businesses sell a particular service, such as
transportation, tours, hairdressing, banking, deliveries, construction, repairs, cleaning,
painting, nursing, etc.
• Wholesaling: Wholesalers are businesses that buy large quantities of certain goods from
manufacturers and resell those goods to retail outlets, who then resell them to individual
consumers.
• Retailing: Retailers purchase ready-made goods from wholesalers or suppliers for resale
at a profit.
5. How much will your business depend on and impact the environment?
Your business can only be sustainable in the long run if it works in harmony with the social
and natural environment. How much does your business depend on the environment? Does it
rely on the weather, soil or other natural resources? Does it need any specific type of labour
from the local community? Does it need the local community to support it? What should you do
to make sure that your business nurtures the natural environment and helps the local
community? Will your business nurture the natural environment or will it have a detrimental
impact? How would you minimize or reverse any negative effect that your business might have?

 How to identify your own list of business ideas?

Every business idea should be based on knowledge of the market and its needs. The market
refers to people who might want to buy a good or service; i.e. the customers. The market differs
from place to place, depending on who lives in the area, how they live and for what goods or
services they spend their money. When you understand the market in your area, you might
recognize many business ideas that you may have previously ignored. When generating
business ideas, it is best to try to keep your mind open to everything. Your first goal is to think
of as many ideas as possible and make a list of all the possible business opportunities. With a
list, you will have more choices! You then can scan the list and nail down the idea(s) that sound
most feasible to you and that you think will be most profitable. There are many ways to come
up with business ideas, such as surveying local businesses or asking existing business owners.
Below, we will examine a few different approaches to generating business ideas. The
information gained from one approach may supplement another and help you to clearly
describe your business ideas. Write down your business ideas on an idea list using the different
approaches to find new ideas

1. Learn from successful business owners

You can learn a lot from people in your area who have already gone through the process of
establishing a business. You should try to get the following information from them:
 What kind of idea did these businesses start with?
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 Where did the ideas come from?

 How did they develop their ideas into successful businesses?
 How does the business profit and fit into the local environment?
 Where did they get the money to start their business?
2. Draw from experience
Think about each type of experience. Start with yourself. What has your experience been as a
customer in the market place? Have you ever searched all day for some items that you could
not find in any store in your area? Think about the goods and services you have wanted at
different times and that you have had difficulty finding. The people around you are potential
customers. It is important to understand their experience trying to find goods and services that
are unavailable or not exactly what they need. Listen carefully to what these people say about
their shopping experience. Ask your family and friends about the things they would like to find
that are not locally available. Expand your social knowledge by talking to people from different
age groups, social classes, etc. You can also visit community groups, colleges, etc. for a greater
understanding of the market.
3. Survey your local business area
Another way of discovering business ideas is to look around your local community. Find out
what type of businesses are already operating in your area and see if you can identify any gaps
in the market. If you live in a village or small town, you may be able to identify all the fields of
business in the whole town. Otherwise, you may need to focus on the preferred business fields
and business types that you identified in Part I of the manual. This is an activity that will be
much easier to do with a business partner or friend. Visit the closest industrial area, markets
and shopping centres in your area.
4. Scanning your environment
You can use your creativity to find more business ideas in your area. Look at the list of existing
local businesses. If the list has included most of the local markets, you may be able to learn
about the industries or service providers on which the local economy relies. Muthoni’s town is a
farming centre, which depends on agriculture. It provides services to many surrounding small
villages. Maybe your town depends on mining, fishing, industry or tourism. Maybe there are a
number of educational or publicly funded institutions that employ many people in your area
5. Brainstorming
Brainstorming means opening up your mind and thinking about many different ideas. You start
with a word or a topic and then write down everything that comes to mind relating to that
subject. You continue writing for as long as possible, putting down things that you think of,
even if they seem irrelevant or odd. Good ideas can come from concepts that initially seem
strange. Brainstorming works best in a group. Get your family or friends together and ask them
to help by writing down ideas they have when they hear the word or subject matter.

 The best business ideas for you

1.Screen your ideas list
You may already have your own idea list. Although each of your business ideas has been
described, there is probably still a lot you do not know about the businesses on the list. The
questions below will help you to continue to get more information and to make a shorter list
with the three best ideas. Try to answer these questions for each idea:
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 Which needs do your goods or services satisfy for the customers?

 What goods or services do your customers want?
 Who will be your customers for this particular business?
 Who are your competitors and what are their strengths and weaknesses?
 How will you be able to supply the quality of goods and services that your customers
want?
 How do you know that there is a need for this business in your area?
To answer these questions objectively, you should get more information by doing a field study
2. Field Study
By talking to possible future customers or suppliers and to members of the business
community, you can gather useful information about the factors that would affect your
business idea. You could just have informal discussions and make observations or you could
arrange more formal visits and interviews. The visits will take time and effort, but by doing field
research, you would already be starting to act like a successful businessperson. The contacts
you make during these visits would also be useful when you start your business.
After you have acquired more information for each business idea, you will notice several
reasons why some ideas are stronger than the others. Once you have reduced your list of
business ideas to the three that are most suitable, the next step is to use a SWOT analysis tool
to select the best idea.
3. SWOT analysis
One method people often use to decide the most suitable business idea is a SWOT analysis. It
helps you to focus on the possible problem areas and the potential advantages of each idea.
SWOT stands for: Strengths Weaknesses Opportunities Threats

How Much Have You Learned?

Activity 1: Direction: Idea list: List done your business ideas below and add some decription
regarding that idea.
Ideas Description
1.

2.
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3.

4.

5.

Activity 2: Direction: Screening Idea list: Choose which of the ideas you’ve listed above is the
best for you. Describe it using the form below.

My Business ideas is:

________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________

Which need will my business fulfill?

________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________

What good/ service will I provide?

________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________

To whom will I sell?

________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________

How will I sell my good/ service?

________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________

How much will my business depend upon and impact the environment?
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________

Activity 3: Direction: Generated Business Idea: Now you can complete a summary of your
business idea in the box below.

My business idea: ______________________________________________________________________

Type of business:
____Manufacturing
____Service provision
____Wholesaling
____Retailing

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Field of business:
______________________________________________________________________________________________
______________________________________________________________________________________________
__________________________________________________________________________________
My goods or services will be:
______________________________________________________________________________________________
______________________________________________________________________________________________
__________________________________________________________________________________

My customers will be:

______________________________________________________________________________________________
______________________________________________________________________________________________
__________________________________________________________________________________

The needs of the customers that will be satisfied are: have chosen this business idea because
(advantages and disadvantages):
______________________________________________________________________________________________
______________________________________________________________________________________________
__________________________________________________________________________________

What should I learn further to prepare for the business?

______________________________________________________________________________________________
______________________________________________________________________________________________
__________________________________________________________________________________

Congratulations for completing this

module

References:
 https://repository.up.ac.za/bitstream/handle/2263/29162/02chapter2.pdf?
sequence=3&isAllowed=y#:~:text=first%20define%20the%20term%20%22consumer,%2C
%20wants%2C%20or%20desires.%22
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 https://www.officialgazette.gov.ph/1992/04/13/republic-act-no-7394-s-1992/
 https://personal-finance.extension.org/what-is-the-family-life-cycle/#:~:text=The
%20family%20life%20cycle%20is,a%20family%20in%20later%20life.
 https://www.thoughtco.com/reference-group-3026518
 https://study.com/academy/lesson/the-difference-between-wants-vs-needs-in-
economics.html#:~:text=In%20economics%2C%20a%20need%20is,not%2C%20be
%20able%20to%20obtain.
 https://www.quora.com/What-is-the-difference-between-need-and-want-4
 https://www.slideshare.net/amckean/consumer-needs-and-wants
 La Marco Nicky 2019, How to Know What a Customer Needs & Wants,
https://smallbusiness.chron.com/customer-needs-wants-10558.html
 https://www.ilo.org/wcmsp5/groups/public/---ed_emp/---emp_ent/---
ifp_seed/documents/instructionalmaterial/wcms_436192.pdf

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