Prepared by:

LAURENCE C. FABIALA
 ENVIRONMENT AND MARKET

CARPENTRY 9
Module ENVIRONMENT AND MARKET
(MARKET-TOWN)
2

CONTENT STANDARD

 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 1. Recognize and understand the market in Carpentry

1.1 Identify the players/ competitors within the town
1.2 Identify the different products/services available in the market

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Lesson

Key concepts of Environment and Market

1
This lesson will tell you about the key concepts of environment and market. After
going through this lesson, you are expected to:
 explain different marketing components.

What Do You Already Know?

Let us determine how much you already know about Environment and Market.
Take this test.

Direction: Read and answer the following question below. Encircle the letter of the best
answer.
1.Which is known as the task environment which comprises of external forces and factors
that are directly related to the business?
A. External Enironment C. Macro Environment
B. Internal Environment D. Micro Environment

2. Which include all the parties which provide resources needed by the organisation?
A. Competitor C. Public
B. Partners D. Suppliers
3. Which of the following includes all the forces and factors inside the organisation which
affect its marketing operations?
A. External Enironment C. Macro Environment
B. Internal Environment D. Micro Environment

4. Who are the players in the same market who targets similar customers as that of the
organisation?
A. Competitor C. Public
B. Partners D. Suppliers
 ENVIRONMENT AND MARKET

What Do You Need to Know?

Read Lesson 1 very well then find out how much you can remember and how much
you learned by doing the activities below.

The marketing activities of the business are affected by several internal and external
factors. While some of the factors are in the control of the business, most of these are not
and the business has to adapt itself to avoid being affected by changes in these factors.
These external and internal factors group together to form a marketing environment in
which the business operates.
What is Marketing Environment?
Marketing Environment is the combination of external and internal factors and forces
which affect the company’s ability to establish a relationship and serve its customers.
Components of Marketing Environment
The marketing environment is made up of the internal and external environment of the
business. While the internal environment can be controlled, the business has very less or
no control over the external environment.
 Internal Environment these includes all the forces and factors inside the
organisation which affect its marketing operations. These components can be
grouped under the Five Ms of the business, which are: Men, Money, Machinery,
Materials, and Markets.
 External Environment constitutes factors and forces which are external to the
business and on which the marketer has little or no control. The external
environment is of two types:
 Micro Environment the micro-component of the external environment is also known as the
task environment. It comprises of external forces and factors that are directly related to
the business. These include suppliers, market intermediaries, customers, partners,
competitors and the public.
 Suppliers include all the parties which provide resources needed by the
organisation.
 Market intermediaries include parties involved in distributing the product or
service of the organisation.
 Partners are all the separate entities like advertising agencies, market
research organisations, banking and insurance companies, transportation
companies, brokers, etc. which conduct business with the organisation.
Customers comprise of the target group of the organisation.
 Competitors are the players in the same market who targets similar
customers as that of the organisation.
 Public is made up of any other group that has an actual or potential interest
or affects the company’s ability to serve its customers.
 Macro Environment the macro component of the marketing environment is also known as
the broad environment. It constitutes the external factors and forces which affect the
industry as a whole but don’t have a direct effect on the business. These include the
following:

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 Demographic Environment The demographic environment is made up of the

people who constitute the market. It is characterised as the factual
investigation and segregation of the population according to their size, density,
location, age, gender, race, and occupation.

 Economic Environment The economic environment constitutes factors which

influence customers’ purchasing power and spending patterns. These factors
include the GDP, GNP, interest rates, inflation, income distribution,
government funding and subsidies, and other major economic variables.

 Physical Environment The physical environment includes the natural

environment in which the business operates. This includes the climatic
conditions, environmental change, accessibility to water and raw materials,
natural disasters, pollution etc.

 Technological Environment The technological environment constitutes

innovation, research and development in technology, technological
alternatives, innovation inducements also technological barriers to smooth
operation. Technology is one of the biggest sources of threats and
opportunities for the organisation and it is very dynamic.
 Political-Legal EnvironmentThe political & Legal environment includes laws
and government’s policies prevailing in the country. It also includes other
pressure groups and agencies which influence or limit the working of the
industry and/or the business in the society.

 Social-Cultural Environment
The social-cultural aspect of the macro-environment is made up of the lifestyle,
values, culture, prejudice and beliefs of the people. This differs in different
regions.

Importance of Marketing Environment

Every business, no matter how big or small, operates within the marketing environment. Its
present and future existence, profits, image, and positioning depend on its internal and
external environment. The business environment is one of the most dynamic aspects of the
business. In order to operate and stay in the market for long, one has to understand and
analyze the marketing environment and its components properly.
 Essesntial fof Planning
 Understanding Customers
 Tapping Trends
 Threats and Opportiny
 Understanding the competitors
 ENVIRONMENT AND MARKET

How Much Have You Learned?

Activity 1: Crossword Puzzle Direction: Use the clue to complete the crossword puzzel
below.

Activity 2: True or False: Read and analyze the following statement. Write True if the
statement is correct however if the statement is wrong write False.
1. Marketing activities of the business are affected by several internal and
external factors which can all be controlled.
2. External Environment constitutes factors and forces which are external to the
business and on which the marketer has little or no control.
3. Micro Environment the micro-component of the external environment is also
known as the task environment.
4. Suppliers include all the parties which provide resources needed by the
organisation.
5. Partners are all the separate entities which conduct competition with the
organisation.
6. Public is made up of any other group that has an actual or potential interest or
affects the company’s ability to serve its customers.
7. Political-Legal environment is made up of the people who constitute the
market. It is characterised as the factual investigation and segregation of the population
according to their size, density, location, age, gender, race, and occupation.
8. The economic environment constitutes factors which influence customers’
purchasing power and spending patterns.

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9. Economic environment includes laws and government’s policies prevailing in

the country. It also includes other pressure groups and agencies which influence or limit
the working of the industry and/or the business in the society.
10. The business environment is one of the most dynamic aspects of the
business.

Activity 3: Venn Diagram Direction: Using the diagram write details that tell how the two
types of external environment are different in the outer circle however, write details that tell
how the topics are alike where the circles overlap.

Macro-Environment Micro-Environment
 ENVIRONMENT AND MARKET

Lesson

Players in the Market (Competitors)

2
This lesson will tell you about the different Entrepreneurial Competencies an
individual must possess. In this world where everything is about business, one must be
competitive. Household workers can also be an entrepreneur in his/her own ways.
After going through this lesson, you are expected to:
 explain who are the different players in the market specially the competitors.

What Do You Already Know?

Let us determine how much you already know about Environment and Market. Take this
test.

https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.iconfinder.com%2Ficons%2F2356279%2Fbusiness_businessman_competition_competitors_team_icon&psig=AOvVaw3nfNpjC55yUE7cao2rJq4s&ust=1597284758021000&source=images&cd=vf
e&ved=0CAMQjB1qFwoTCODY1NbLlOsCFQAAAAAdAAAAABAJ

1. What does the picture above tries to convey?

2. How will you going to connect it in business?

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What Do You Need to Know?

Read lesson 2 very well then find out how much you can remember and how much
you learned by doing the activities below.

Knowing who your competitors are, and what they are offering, can help you to make
your products, services and marketing stand out. It will enable you to set your prices
competitively and help you to respond to rival marketing campaigns with your own
initiatives.
You can use this knowledge to create marketing strategies that take advantage of
your competitors' weaknesses, and improve your own business performance. You can also
assess any threats posed by both new entrants to your market and current competitors.
This knowledge will help you to be realistic about how successful you can be.
This guide explains how to analyse who your competitors are, how to research what
they're doing and how to act on the information you gain.
Who are your competitors?
All businesses face competition. Even if you're the only restaurant in town you must
compete with cinemas, bars and other businesses where your customers will spend their
money instead of with you. Your competitor could be a new business offering a substitute
or similar product that makes your own redundant. Competition is not just another
business that might take money away from you. It can be another product or service that's
being developed and which you ought to be selling or looking to license before somebody
else takes it up.
You can get clues to the existence of competitors from:
 local business directories
 advertising
 press reports
 exhibitions and trade fairs
 questionnaires
 searching on the Internet for similar products or services
 information provided by customers
 flyers and marketing literature that have been sent to you - quite common if you're
on a bought-in marketing list
 searching for existing patented products that are similar to yours
 planning applications and building work in progress
What you need to know about your competitors?
Monitor the way your competitors do business. Look at:
 the products or services they provide and how they market them to customers
 the prices they charge
 how they distribute and deliver
 the devices they employ to enhance customer loyalty and what back-up service they
offer
 their brand and design values
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 whether they innovate - business methods as well as products

How they treat their customers

Find out as much as possible about your competitors' customers, such as:
 who they are
 what products or services different customers buy from them
 what customers see as your competitors' strengths and weaknesses
 whether there are any long-standing customers
 if they've had an influx of customers recently
What they're planning to do
Try to go beyond what's happening now by investigating your competitors' business
strategy, for example:
 what types of customer they're targeting
 what new products they're developing
 what financial resources they have

How to act on the competitor information you get ?

Evaluate the information you find about your competitors. This should tell you whether
there are gaps in the market you can exploit. It should also indicate whether there is a
saturation of suppliers in certain areas of your market, which might lead you to focus on
less competitive areas.

Draw up a list of everything that you've found out about your competitors, however small.
Put the information into three categories:
 what you can learn from and do better
If you're sure your competitors are doing something better than you, you need
to respond and make some changes. It could be anything from improving customer
service, assessing your prices and updating your products, to changing the way you
market yourself, redesigning your literature and website and changing your
suppliers.
Try to innovate not imitate. Now you've got the idea, can you do it even better,
add more value?
Your competitors might not have rights over their actual ideas, but remember
the rules on patents, copyright and design rights. For more information, consult
Intellectual property as a business tool.
 what they're doing worse than you
Exploit the gaps you've identified. These may be in their product range or
service, marketing or distribution, even the way they recruit and retain employees.
Customer service reputation can often provide the difference between
businesses that operate in a very competitive market. Renew your efforts in these
areas to exploit the deficiencies you've discovered in your competitors.
But don't be satisfied about your current strengths. Your current offerings
may still need improving and your competitors may also be assessing you. They may
adopt and enhance your good ideas.

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 what they're doing the same as you

Why are they doing the same as you, particularly if you're not impressed by
other things they do? Perhaps you both need to make some changes.
Analyse these common areas and see whether you've got it right. And even if
you have, your competitor may be planning an improvement.

How Much Have You Learned?

Activity 1: True or False: Read and analyze the following statement. Write True if the
statement is correct however if the statement is wrong write False.
1. Knowing who your competitors are, and what they are offering, can help you to
make your products, services and marketing stand out.
2. Competition is not just another business that might take money away from
you.
3. If you're sure your competitors are doing something better than you, you need
to respond and make some changes.
4. Try to imitate not innovate if you've got the idea, you can copy it.

5. Always be satisfied about your current strengths.

6. Customer service reputation can often provide the difference between
businesses that operate in a very competitive market.
7. Retaine your efforts in these areas to exploit the deficiencies you've discovered
in your competitors.
8. In business always disregard the rules on patents, copyright and design rights
in order for you to developed new products
9. Get clues to the existence of competitors from gossips.
10. Monitor the way your competitors do business by their brand and design
values.

Activity 2: Direction: Answer the given question below assuming that you are planning to
start a furniture shop in your town.

Who do you think are your target consumers/markets?

Where is the most ideal location to situate your business?

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Who are your possible competitor/s?

Activity 3: Direction: Answer the following questions below.

1. How does competition affect business?

2. How to improve competitiveness in business

3. Why Is It Important for Companies to Have Competitors?

RUBRICS FOR CHECKING

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Lesson

Products & services available in the

3 market

This lesson will tell you about the different Products & services available in the
market. After going through this lesson, you are expected to:
 anayze the different product available in the market.

What Do You Already Know?

Let us determine how much you already know about Environment and Market. Take this
test.
Direction: Read and answer the following question below. Encircle the letter of the best
answer.
1.Which of these items are generally standardized and are marketed to a wide cross section
of industrial users?

A. Component parts
C. Raw Material
B. Light Equipments
D. Supplies
2.Which of theseconsumer products and services with unique characteristics or brand
identification for which a significant group of consumers is willing to make a special
purchase effort?

A. Convenience product
C. Shopping product
B. Unsought products
D. Speciality products

3.Which of these are the basic products which enter into the production process with little
or no alterations?

A. Component parts B. Light Equipments

4. Which of these consumer product or service that customers normally buy frequently,
immediately and without great comparison or buying effort?
A. Convenience product C. Shopping product
B. Unsought products D. Speciality products
5. Which of the following are those which are used in the production process. They are
normally treated as user customers?

A. Capital Items C. Material and parts

B. Industrial products D. Supplies and Services

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 C. Heavy and Part
D. Raw Material

 Speciality products are consumer products and services with unique

characteristics or brand identification for which a significant group of
consumers is willing to make a special purchase effort. As you can see, the
types of consumer products involve different levels of effort in the purchasing
process: the speciality product requires a special purchase effort, but applies
only to certain consumers. Examples include specific cars, professional and
high-prices photographic equipment, designer clothes etc. A perfect example
for these types of consumer products is a Lamborghini. In order to buy one, a
certain group of buyers would make a special effort, for instance by travelling
great distances to buy one.
 Unsought products are those consumer products that a consumer either
does not know about or knows about but does not consider buying under

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What Do You Need to Know?

Read lesson 3 very well then find out how much you can remember and how much
you learned by doing the activities below.

What Is a Product?
These are anything that can be offered in a market for attention, acquisition, use, or
consumption that might satisfy a need or want. Product can in form of goods, services,
experiences, events, persons,places, properties, organizations, information or ideas.

Product and Services Classification

1. Consumer Products these ate products and services for personal consumtion. They
are classified by how consumers buy them-convenience product, shopping products,
specialty products and unsought products.
 Convenience product among the four types of consumer products, the
convenience product is bought most frequently. A convenience product is a
consumer product or service that customers normally buy frequently,
immediately and without great comparison or buying effort. Examples include
articles such as laundry detergents, fast food, sugar and magazines. As you
can see, convenience products are those types of consumer products that are
usually low-priced and placed in many locations to make them readily
available when consumers need or want them.
 Shopping product are a consumer product that the customer usually
compares on attributes such as quality, price and style in the process of
selecting and purchasing. Thus, a difference between the two types of
consumer products presented so far is that the shopping product is usually
less frequently purchased and more carefully compared. Therefore, consumers
spend much more time and effort in gathering information and comparing
alternatives. Types of consumer products that fall within the category of
shopping products are: furniture, clothing, used cars, airline services etc. As a
matter of fact marketers usually distribute these types of consumer products
through fewer outlets, but provide deeper sales support in order to help
customers in the comparison effort.
 ENVIRONMENT AND MARKET

normal conditions. Thus, these types of consumer products consumers do not

think about normally, at least not until they need them. Most new innovations
are unsought until consumers become aware of them. Other examples of these
types of consumer products are life insurance, pre-planned funeral services
etc.
Below you can find relevant marketing considerations for each of the 4 types of
consumer products.

Marketing Types of Consumer Products

consideratio Convenience Shopping Specialty Unsought
n
Less frequent Strong brand
Frequent
purchase, preference and
purchase, little
Customer much effort loyalty, special Little product
effort
buying (planning and purchase awareness and
(planning,
behaviou comparison of effort, little knowledge or
comparison),
r brands on comparison of little interest
low customer
price, quality, brands, low
involvement
style etc.) price sensitivity
Price Low price Higher price High price Varies
Widespread Exclusive
Selective
distribution, distribution in
Distribution distribution, Varies
convenient only one or a
fewer outlets
locations few outlets
More carefully Aggressive
Mass Advertising and
Promotion targeted advertising and
promotion personal selling
promotion personal selling
Luxury goods
Toothpaste,
Television, (e.g. Rolex Life insurance
magazines,
Examples furniture, watch), or pre-planned
laundry
clothing designer funeral service
detergent
clothing

2. Industrial products are products purchased for further processing or for use in
conducting business. They are classified by the purpose for which the product is
purchased- Raw materials and parts, Capital and Supplies and services.
 Material and parts Goods that enter the product directly. The cost of these
items are treated by the purchasing company as the part of manufacturing
cost. Material and parts are further segregated into three parts that are: Raw
Materials
for sale that Manufacturing
are essentially Materials
intangible and do and Component
not result Parts. Example:
in ownership.
Teaching, Counseling, Legal advice and etc.

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  Raw Material: These are the basic products which enter into the

production process with little or no alterations. They may be marked to

user customers or OEMs (Original Equipment Manufactures). Such as
iron ore, crude oil, vegetables.
 Manufactured Materials: That also includes those raw materials that are
subjected to some amount of processing before entering the production
process. Such as acids, fuel oil, steel and chemicals.
 Component parts: These are the semi finished parts that can installed
directly into the products with little or no additional change. Such as
small motors, batteries and tyres.

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 ENVIRONMENT AND MARKET

 Capital Items Capital items are those which are used in the production
process. They are normally treated as user customers. Capital items are classified
into three groups: Heavy equipments, Light Equipments, Plant and Buildings
 Heavy Equipments: These are the major and long term investments
such as general purpose and special purpose machines, turbines,
generators and earth moving equipments.
 Light Equipments: Light equipments and tools which have lower
purchase prices and are not considered as the part of heavy
equipment such as typewriters, computers and small electric motors.
 Plants and Buildings: These are the real estate property of the
company. It includes the firm offices, plant, warehouses, warehouses
and parking lots.
 Supplies and Services support the operations of the purchasing organization.
They are not consider as the part of the finished goods. They are further segregated
into two parts: Supplies Services
 Supplies: These items are generally standardized and are marketed to
a wide cross section of industrial users. Such as paints, oils, greases,
pencils, stationary etc.
 Services: Company needs a wide range of services like building
maintenance services, auditing services, legal services, courier
services and many more.
Other forms of products available in the market.
Organization Market consits of activities undertaken to creat maintain, or change
attitudes and behavior target consumers toward an organization.
Person marketing consists of activites undertaken to creat, maintain or change attitutes
and behavior of target consumers towards particular people.
Place marketing consists of activites undertaken to creat, maintain or change attitutes
and behavior of target consumers towards particular places. Example: Tourism.
Social marketing is the use of commercial marketing concepts and tools in programs
designed to influence individuals’ behavior to improve their well-being and that of
society. Exmple: Public helath campaign and Tourism.
Experiences represents what buying product or service will do for costumer. Example:
Treasure Land and Disney Land.
Services is a form of product that consist of activities, benefits, or satisfactions offeres
 ENVIRONMENT AND MARKET

How Much Have You Learned?

Activity 1: Crossword Puzzle Direction: Use the clue to complete the crossword puzzel
below.

Activity 2.3: Venn Diagram Direction: Using the diagram write details that tell how the two
types of product are different in the outer circle however, write details that tell how the
topics are alike where the circles overlap.

Consumer product Industrial product

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 ENVIRONMENT AND MARKET

Activity 2.3: Direction: List down the different product which is available in the market near
your locality.

CONSUMER PRODUCT
Convenience Shopping Specialty Unsought

INDUSTRIAL PRODUCT
Material and Parts Capital Item Supplies & Services

Congratulations for completing this module

References:
https://www.slideshare.net/joydeephazarika/marketing-products-services
https://marketing-insider.eu/4-types-of-consumer-

products/#:~:text=A%20convenience%20product%20is%20a,fast%20food%2C%20sugar%2
0and%20magazines.
https://www.slideshare.net/monirba2014/industrial-marketing-32670892

https://www.infoentrepreneurs.org/en/guides/understand-your-competitors/

https://www.feedough.com/marketing-environment/

https://www.slideshare.net/gilbertbautista3/module-2-environment-market

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PERSONAL ENTREPRENEURIAL COMPETENCIES (PeCS)

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