Grade

Module 3

Department of Education • Republic of the Philippines

TLE – Grade 9
MODULE 3: RECOGNIZE THE POTENTIAL CUSTOMER/MARKET IN FOOD
PROCESSING
First Edition, 2020

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Published by the Department of Education

Secretary: Leonor Magtolis Briones
Undersecretary for Curriculum: Diosdado M. San Antonio

Development Team of the Module

Writer: Lina C. Miraran
Arlando A. Imperial
Editor: Jael P. Olaño
Illustrator/Layout Artist: John Paulo C. Chavez
Management Team:
Gilbert T. Sadsad, Regional Director
Jessie L. Amin, Assistant Regional Director
Francisco B. Bulalacao Jr., CLMD Chief, ROV
Christie L. Alvarez, Regional EPS in EPP/TLE/TVL
Loida N. Nidea, Schools Division Superintendent
Susan S. Collano, Assistant Schools Division Superintendent (Secondary)
Lynn Z. Padillo, Division CID Chief/OIC, ASDS-Elementary
Lalaine V. Fabricante, Division TLE/TVL Coordinator (H.E)
Miguel P. Barcia, Division TLE/TVL Coordinator (AFA)

Department of Education • Republic of the Philippines

 G-9
TLE

ENVIRONMENT AND MARKET

Module-3 Week-3

LO-2 Recognize the Potential

Customer/ Market in Food
Processing

Department of Education • Republic of the Philippines

INTRODUCTION
After setting your own personal goals and targets to achieve the objectives of
this module, you will have the opportunity to read and learn more about business
environment and market. You will also be given a chance to do practical exercises
and activities to deepen your understanding of the topic.

Now that you have read some of the important considerations to be successful
in any business, you are ready to explore the environment and the market.

Objectives

At the end of this lesson, you should be able to:

1. Identify profile of potential customer;

2. Identify customer’s needs and wants through consumer analysis; and
3. Conduct consumer/market analysis.

Vocabulary List

Consumer A behavioural analysis to customers and clients and seek to

analysis identify and weigh the relative important factors consumers use.

Potential Someone who is capable of becoming a purchaser of

costumer products/services.

Needs Something that is necessary for an organism to live a healthy life.

Wants Something that is desired.

Indulgence in something that provides pleasure, satisfaction, or
Luxuries
ease.
Understanding of the dynamics of the product in order to
Product
showcase the best qualities and maximum features of the
concept
product.
Economic
Essentially entails the evaluation of cost and benefits
analysis

Feasible Possible to do easily and conveniently

The price in which a goods or services is sold by the seller to the
Selling price
buyer.
An individual who creates a new business, bearing most of the
Entrepreneur
risk and enjoying the most of the reward.

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 Pre-Test

Multiple Choices
Direction: Write the letter of the correct answer in your notebook.

1. These are luxuries, advantages and desires that every individual considers
beyond necessary.

a.Wants

b.Desires

c.Requirements

d.Needs

2. This is generated by examining what goods and services are sold in the
community.
a.Business Creation

b.Business Pricing

c.Business Concept

d.Business Idea

3. A process of making a new product to be sold to the customers.

a.Product Analysis

b.Product Conceptualization

c.Product Development

d.Product Implementation

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4. A managerial tool used to assess the environment to gather important
information used for strategic planning.

a.Environmental Scanning

b.SWOT Analysis

c.WOTS Analysis

d.Survey Analysis

5. Letter “T” in SWOT Analysis stands for ____________

a. Training b. Threats c. Treats d. Trim

Activity 2. Guide Questions:

Direction: Read and study the guide questions below. Use a separate sheet
of paper to write your responses to the guide questions

▪ How does one determine the products or services to be produced and/or

offered to the target customers?

▪ How does one select an entrepreneurial activity?

▪ When can one say that a certain product has value?

▪ Is innovation and creativity of your products/services important? Explain.

▪ How can one effectively respond to the needs of the target customer?

▪ Express from the viewpoint of a business owner the importance of

scanning the environment and market in generating a business idea.

▪ Using a self-assessment, explain your level of confidence in formulating

a business idea.

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 What’s New?
Discover

View Online Video: Learn by Viewing on the”

https://www.youtube.com/watch?v=qzr82EuiJu0

Then do Self-Check 1.1 to know your level of

understanding.

Read Lesson Information closely and find out how much

you can remember. Then do Self-Check 1.1, Activity and
Task Sheet 1.1 to know how much you have learned.

Lesson Information

Before launching a new business venture or product, you need to identify

potential customer base in order to modify your product or service idea according to
the needs of your prospective customers, you need to know them better. Defining the
target market of your business will also help in efficient utilization of your marketing.

To be successful in any kind of business venture, potential entrepreneurs

should always look closely at the environment and market. They should always be
watchful for existing opportunities and constraints. The opportunities in the business
environment are those factors that provide possibilities for a business to expand and
become more profitable. Constraints, on the other hand, are those factors that limit
the business ability to grow, hence reduce the chance of generating profit. One of
the best ways to evaluate the opportunities and constraints is to conduct a SWOT
Analysis (Strengths, Weakness, Opportunities and Threats).

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 SWOT analysis is a managerial tool to assess the business environment. This
method gathers important information, which in turn is used in strategic planning.
Successful entrepreneurs must know how to take risks in business

Strengths and Weaknesses are internal in an organization. They relate to resources

owned or lacking in an organization, things that the entrepreneur has control over,
and as well as the extent of its marketing.

Opportunities and Threats exist in the external environment. Opportunities

pertain to the market, to the development of new technology, and external factors
such as government policies, climate, and trends, favorable to the business. Threats
pertain to what the competition is doing as well as legal and other constraints of the
business.

Now that you have read some of the important considerations to be successful
in any business, you are ready to explore the environment and market.

Develop a Product/ Service in Food (Fish) Processing

A. Product Development
The Product development, we are referring to a process of making a new
product to be sold by a business or enterprise to its customers. The Product
development may involve modification of an existing product or its presentation, or
formulation of an entirely new product that satisfies a newly defined customer need
and/or want, and/or a market place.

The term development in this module refers collectively to the entire process
of identifying a market opportunity, creating a product to appeal to the identified
market, and finally, testing, modifying and refining the product until this will be ready
for production. This product can be any item to be sold to the consumers.

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 There are basic, yet vital questions that you can ask yourself. When you find
acceptable answers to these, you may say that you are ready to develop a product
and/or render service.

▪ For whom are the products/services?

▪ What benefits will the customers expect from it?

▪ How will the product differ from the existing brand? Or from their
competitor?

Likewise, needs and wants of the people within the area should also be taken into
consideration. However, people have different concepts of needs and wants. Needs in
business are important things that every individual cannot do without in a society.
These include:

▪ Basic commodities for consumption

▪ Clothing and other personal belongings,

▪ Shelter, sanitation and health

▪ Education
Basic needs are essential to every individual so he/she may be able to live with
dignity and pride in a community. Awareness of these needs can be help you generate
business ideas and subsequently lead to product development.

Wants are desires, and luxuries that signify wealth. Wants or desires are
considered above all the basic necessities of life. Some examples of non- basic needs
are luxury cars, jewelry, non –essential fashion accessories, shoes and clothes, travel
for leisure. Eating in expensive restaurants; watching movies, concerts, and plays are
also considered luxuries for many people.

Needs and wants of people are the basic indicators of the kind of business
that you may engage in because being able to meet these can serve as the measure

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of your success. Some other good points that you might consider in business
undertakings are the kinds of people who will be your clients, their needs, wants,
lifestyle, culture and traditions.

To summarize, product development depends entirely on meeting the needs

and wants of the customers.

B. Concepts of Developing a Product

Concept development is very critical phase in the creation of a product. At this

stage, the needs of the target market are identified and competitive products are
reviewed before the product specifications are defined. The product concept is
selected along with an economic analysis to come up with an outline of how a product
is being developed. Below is a figure that shows the stages of concept development
of a product.

Identify Establish Generate Select a Refine

Customer Target Product Product Specifications

Needs Specifications Concepts Concept

Plan

Analyze Perform Development

Competitive Economic Project

Products Analysis

CoCONCEPT DEVELOPMENT

Figure 3: Concept Development

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The process of product development is as follows:
1. Identify Customer Needs - Using survey forms, interviews, researches,
focused group discussions, and observations, an entrepreneur can easily
identify customers ‘needs and wants. In this stage, the information gathered
here can already include product specifications (performance, taste, size,
color, shape, life span of the product, etc.). This stage is very important
because this determines the product to be produced or the service to be
provided.
2. Establish Target Specifications - Based on customers' needs and reviews
of competitive products and services, you may now establish target
specifications of the prospective new products and/or services. Target
specifications are essentially a wish-list of the consumer.

3. Analyze Competitive Products - It is imperative to analyze existing

competitive products to provide important information in establishing
product/service specifications. Other products may exhibit successful design
attributes that should be emulated or improved upon in the new
product/service.
4. Generate Product Concepts - After having gone through the previous
processes, you may now develop a number of product concepts to illustrate
what type of products/services are both technically feasible and would best
meet the requirements of the target specifications.

5. Select a Product Concept - Through the process of evaluation, a final concept

is selected. After the final selection, additional market research can be applied to
obtain feedbacks from certain key customers.

6. Refine Product Specifications - In this stage, products/services specifications

are refined on the basis of input from the previous activities. Final specifications
are the result of extensive study, expected service life, projected selling price and
among others.

7. Perform Economic Analysis - Throughout the process of product development,

it is very important to always review and estimate the economic implications

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 regarding development expenses, manufacturing costs, and selling price of the
products/services to be offered/provided.

8. Plan the Remaining Development Project - In this final stage of concept

development, you may prepare a detailed development plan which includes a list
of activities, the necessary resources and expenses, and a development schedule
with milestones for tracking progress.

C. Finding Value

People buy for a reason. There should be something in your products/services

that would give consumers a good reason to go back and acquire more. There must
be something that makes you the best option for your target customers; you must
offer something to your customers that they will make them value your
products/services.

The value that you incorporate to your product is called value proposition.
Value proposition is a believable collection of the most persuasive reasons people
should notice you and take the action you have. Asking for Value is created by
fulfilling desires and solving problems. This is what people gets to spend for
products/services.

D. Innovation

Innovation is the introduction of something new in your products/services.

This may be a new idea, a new method or a device. If you want to increase your
sales and profit you must innovate. Some of the possible innovations in your products
are changes in packaging, improved taste, color, size, shape and perhaps price. Some
of the possible innovations in providing services are the application of new improved
methods, additional featured services and possibly, freebies services or products that
are included for free.

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 What is it?
Self-Check 1.1

Direction: Matching type: Match the words in column A with

the meaning in column B and send it to your teacher after you
read the information sheet.Students must inform the teacher
through online after finishing the information sheet of the lesson

A B

1. Concept Development a. The introduction of something new

in your products/services.
2. Basic Needs b. The fulfilling desire people gets by
spending for your products/services.
3. Product Development c. Jewelries, luxury car, and gadgets
4. Economic Analysis d. A managerial tool to assess the
business environment
5. Innovation e. Essential to every individual be
able to live with pride and dignity
6. Threats f. A process of making a new product
to be sold
7. Value g. The needs of the target market are
identified and competitive products
are reviewed
8. Opportunities h. Reviewing and estimating the
economic implications

9. SWOT analysis i. Provide possibilities for a business

to expand and become more
profitable
10. Wants j. pertains to what the competition
is doing as well as legal and other
constraints of the business.

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 Whats more?
Enrichment Activity

I. Directions: Enumerate the following. Write your answer on a separate sheet

of paper.

Wants Needs

What I can do?

Performance Task

Task Sheet 4.1

Observe one business venture in an area near you. Conduct a market analysis using
the SWOT analysis on the business you choose. Write your answer on a separate
sheet. List down under the following column. Perform this task using the following
format:

Name of Store:_______________________
Kind of business:_____________________
Strength Weakness Opportunity Threats
(Positive (Negative (e.g Technology) (Constraints in
attributes Attributes of business)
ofbusiness) business

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ACCURACY (100%) SCORING CRITERIA
5- Identified 5 Strength, Weakness, Opportunities and threats.
4- Identified 4 Strength, Weakness, Opportunities and threats.
3- Identified 4 Strength, Weakness, Opportunities and threats.
2- Identified 4 Strength, Weakness, Opportunities and threats.
1- Failed to identify Strength, Weakness, Opportunities and threats.

5 = 94 – 97 4 = 90 – 93 3= 87-89
2 = 85 – 88 1= 80-84

Congratulations! You did a great job! Rest and relax a while then move on to
the next lesson. Good luck!

Post-Test

Direction: Multiple choice. Select the letter that corresponds to the correct answer in
the sentences below.

1. A process of making a new product to be sold to the customers.

a.Product Analysis
b.Product Conceptualization
c.Product Development
d.Product Implementation
2. Why do Eleazar studies the population in his immediate community?
He is doing this to__________________________________.
a determines whom to sell his product or service
b. identify his would be “suki”
c. predict his biggest buyer
d. select his favorite costumers
3. These are luxuries, advantages, and desires that every individual
considers beyond necessary.
a.Wants
b.Desires
c.Requirements
d.Needs
4. This is generated by examining what goods and services are sold in
the community.
a.Business Creation
b.Business Pricing
c.Business Concept

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 d.Business Idea
5. Letter “T” in SWOT Analysis stands for ____________
a. Training b. Threats c. Treats d. Trim

What’s more to do?

Assignment/Additional Activities

Direction: Find a word or phrases that is related to the topic discussed. Write your answer
in separate sheet.

S F T V A L U E G P
S W S T R E N T H R
A U O I U F I W I O
H Y U T N E E D S D
I G D W A N T S U
T H R E A T S Y H C
E E Y L S K U E T
P R I C E I J O A S

Answer Key

Pre-Test: Self-Check 1.1 Enrichment

1. A Test I
2 D 1.G 6. J 1. PRODUCT
3. C 2. E 7. B 2. WANTS
4. B 3. F 8. I
3. PRICE
5. B 4. H 9. D
5. A 10. C
4. SWOT
5. NEEDS

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 Task Sheet 1.4 Post-Test
1. C
ACCURACY (100%) SCORING CRITERIA 2. A
5- Identified 5 Strength, Weakness, opportunity, and Threats 3. A
4. D
4- Identified 4 Strength, Weakness, opportunity, and threats 5. B

3- - Identified 3 Strength, Weakness, opportunity, and threats

2- - Identified 1-2 Strength, Weakness, opportunity, and threats

1- Failed to - Identified Strength, Weakness, opportunity, and

threats

5 = 94 – 97 4=90– 93
3= 87-89 2 = 85 – 88
1= 80-84

References:
A.BOOKS
Legaspi, Anselma S. et al.(1990) A Guide for Fish Handling, Marketing and
Distribution 2nd Edition. Technology and Packaging Publication section,
Fisheries Development Support

Dagoon, Jesse D., (1985) .Exploratory Fishery Arts, Manila, Philippines

Rex Bookstore

Calmorin, Laurentina P.,Calmorin, Melchor A., Tinaypan, Alfredo S..(1990).

Introduction to Fishery Technology, Manila, Philippines. National Book Sto

B. OTHERS
• Microsoft ® Encarta ® 2006. © 1993-2005 Microsoft Corporation.

• http://www.definitions.net

• http://www.meriam.webster.com

• http:// smallbiztrends.com

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