AGRICULTURAL CROP PRODUCTION

AGRONOMY (TLE 10)

Quarter 1, Week 3

_____________________________________________________
Prepared by: Mrs. Mary Grace S. Maata

Learning
LO 3. Develop a product for the agricultural crop production market
Competency

Code TLE_EM10-IIk-3

At the end of this lesson, students must be able to:

Objectives K: identify what is the “value” of the customer and types of customer;
S: explain the concept of developing a product; and
A: show appreciation on product development.

What Do You Need To Know?

THE MARKET – PRODUCT DEVELOPMENT

Product Development

The making of a new product to be sold by a business or enterprise to its customers is known as Product
Development. It may include the alteration of an existing product or its entire value, or the creation of an entirely
new product that satisfies a newly defined customer’s needs and/or wants. The term Development refers
collectively to the entire process of distinguishing a market opportunity, making a product to attract the
identified market.

These are the basic questions you may ask yourself when you want to pursue product development. If you find
acceptable answers to these, then you are ready to develop a product or render services:
1. For whom are the product/service aimed?
2. What benefit will the customers expect from it?
3. How will the product differ from the existing brand? Or from their competitor?

Basic needs are essential to every individual so he/she may be able to live with dignity and pride in the community
he/she lives. These needs can obviously help you generate business ideas and subsequently to develop a
marketable product. Needs and wants of people are the basic indicators of the kind of business that a seller
may engage into because they can serve as the basis of your success. Some other good points that you might
consider in business undertakings are the people, aside from their needs, wants, lifestyle, culture and tradition,
and social orientation.

Concepts of Developing a Product

The very critical stage in developing a product is called Concept Development. Before the product
specifications, the needs of the target are defined, market are identified, and competitive products are
reviewed. Then along with the economic analysis, the product concept is selected to come up with an outline
of how a product is being developed.
The figure below shows the stages of concept development of a product.

The process of product development follows these steps:

1. Identifying Customer Needs – it could be in a form of interviews, survey forms, researches, focused group
discussions and observations of customer’s needs and wants. In this stage, the information that can possibly be
gathered here are the product specifications (performance, taste, size, color, shape, life span of the product,
etc.). This is an important stage since this would be the basis for the product to be produced or provided.

2. Establishing Target Specifications – Based on customer’s needs and reviews of competitive products, you may
now establish target specifications of the prospective new product and/or service. Target specifications are
essentially a wish-list.

3. Analyzing Competitive Products – To provide important information on establishing product/service

specifications, it is important to analyze existing competitive products.

4. Generating Product Concept – This is done by developing a number of product concepts to illustrate what
types of products are both technically feasible and would best meet the requirements of the target
consumers/market.

5. Selecting a Product Concept – Through the process of evaluation between attributes, a final concept is
selected. To obtain feedbacks from certain key customers, the final selection and additional market research
can be applied.

6. Refining Product Specifications – Product/service specifications are refined in this stage on the basis of input
from the foregoing activities. Final specifications are the results of extensive study. The expected service life and
projected selling price are also being considered at this stage.

7. Performing Economic Analysis – This is to be done by reviewing and estimating the economic implications
regarding development expenses, manufacturing costs, and selling price of the product to be offered/provided.

8. Planning the remaining Development Project – in this final stage, you may prepare a detailed development
plan which includes a list of activities, the necessary resources and expenses, and a development schedule with
indicators for tracking progress.

Finding value
There is something in your product/service that give consumers a good reason to go back and buy for more, or
it is something that has to make you the best option for your target customers; otherwise, they have no reason
to buy what you are selling. This implies that you offer something to your customers which they will value or
treasure.

Value proposition is the value that you incorporate to your product. It is “a believable collection of the most
persuasive reasons people should notice you and take action you are asking for” . This is created by fulfilling
deep desires and solving deep problems. This what gets the people moving and keep them spending for your
product/service.

Innovation
The introduction of something new in the existing product or service is commonly known as Innovation. This may
include a new idea, method or a system in the business. An entrepreneur must know how to innovate to
increase its sales and profit.
Unique Selling Proposition (USP)

Unique Selling Proposition is defined as the factor of consideration presented by a seller as the reason that the
product or service being offered is different from and better than that of other key players or competitors. One
must have to sell its product to himself before he can begin to sell it to his target customers. This is especially
applicable when your product or service is similar to those around you.
Unique selling proposition would require careful analysis on how other businesses’ ads and marketing
strategies are presented. Apart from the qualities of their product or service, you have to analyze what they sell,
you can learn a great deal about how other companies distinguished themselves from their competitors.

Here’s how to discover your Unique Selling Proposition and use it to increase your sales and profit:

• Use empathy by putting yourself in the shoes of your customers. Never get to fall in love with your own
product or service or brag about it to the public. Remember that agricultural products are not hard to sell
because they are part of everyone basic needs. Always focus on the needs of the target customers, put in
your mind that you are making this product for their satisfaction, and eventually to increase your sales or
profit. Always consider the quality, availability, convenience, cleanliness, reliability, and friendliness and just
ignore your competitors.

• Identify what drives your customer to buy your products. Do some efforts to find out, analyze and utilize the
information that motivates the customers in their decisions to purchase your product/service. Accept
criticisms from the customer humanely and make that one as your drive to improve your products.

• Always think of the reasons why your customers should pick your products instead of that of your competitors.
As your line of business is prosper, always ask your customers feedback and information to improve your
products and services. This will also guide you in the product and selling decision making in the future.
 AGRICULTURAL CROP PRODUCTION
AGRONOMY (TLE 10)
ACTIVITY SHEET- Quarter 1, Week 3

NAME: _________________________________________________ SECTION: ______________________________

Activity 1: Enumeration

1–8 The eight steps/stages of Product Development

1. ______________________________________________________

2.______________________________________________________

3. ______________________________________________________

4. ______________________________________________________

5. ______________________________________________________

6. ______________________________________________________

7. ______________________________________________________

8. ______________________________________________________

9 – 15. As an entrepreneur you have to show empathy to your customers, what are
the things you should consider when making your Product Development?

9. _______________________________________________________

10. ______________________________________________________

11. ______________________________________________________

12. ______________________________________________________

13. ______________________________________________________

14. ______________________________________________________

15. ______________________________________________________

Assessment:
Directions: Choose the letter of the best answer. Write your answer on the space provided before each number
item.

_____1. What do you call the process of making a new product to be sold to the customers?
A. product analysis C. business concept
B. product conceptualization D. business idea
_____2. What process is generated by examining what goods and services are sold outside the community?
A. business creation C. business idea
B. business concept D. business pricing
_____3. What things are considered as luxuries or advantage and considered as every individual beyond
necessity?
A. desires C. requirements
B. needs D. wants

_____4. What factor or consideration is presented by a seller as the reason that one product or service is better
and different from that of the competitors?
A. finding value-added C. unique selling price
B. unique pricing policy D. unique selling proposition
_____5. In what stage of business transaction does the needs of the target market is identified, reviewed, and
evaluated?
A. concept development C. project development
B. economic analysis D. refine specification

_____6. What procedure indicates the introduction of a new to make the product and services more attractive
and saleable to prospective customers?
A. creativity C. new idea
B. innovation D. product development
_____7. What managerial tool used to assess the environment in gathering important information that is used for
strategic planning?
A. environmental scanning C. SWOT analysis
B. survey analysis D. WOTS analysis

______8. What marketing practices is done by creating name, symbol or design that identifies and differentiate
a product from other products?
A. branding C. tagging
B. sealing D. tagline

______9. What business term signifies a meaningful and unforgettable statement that captures the essence of
your hand?
A. branding C. tagline
B. product naming D. unique selling proposition

______10. What are the things that people cannot live without?
A. desires C. requirements
B. needs D. wants

______11. Which of the following examples below is NOT considered as basic needs?
A. car C. food
B. education D. shelter

______12. Daniel is focused on his business; he does the review and estimates the economic implications
regarding development expenses and the selling price of the product to be offered. What step of
product development he is been doing?
A. analyze competitive products C. perform economic analysis
B. identify customer needs D. refine product specifications

______13. After the final selection, Sarah did an additional market research which can be obtained from the
feedbacks of the concept key customers. What step of product development she applied?
A. establish target specifications C. plan the development project
B. generate product concept D. select a product concept

_____14. What stage in product development gathered information about the taste, size color, shape and life
span of the product?
A. analyze competitive products C. perform economic analysis
B. identify customer needs D. refine product specifications

_____15. Which of the following steps in product development is considered as the final stage?
A. establish target specifications C. plan the development project
B. generate product concept D. select a product concept