ENTREPRENEURSHIP - Grade 12

Quarter 1
Learning Episode 4
Date: ___________

MELC: Analyze the market need.

Subtask: Identify the market problems to be solved or the market need to be met.

FACILITATION SCRIPT
Good day Oroquieta City and to all our Grade 12 students of the Division of Oroquieta
City. Welcome to our fourth learning episode in Entrepreneurship
Our learning competency for today is still on analyzing the market need, with its sub-
task: Identify the market problems to be solved or the market need to be met . Yes, you
heard it right, today, we will be identifying the market problem to be solved or the market need
to be met given a scenario.
In the previous learning episode, we were able to identify the different sources of
business opportunities and the essentials in finding them.
Can you help me recall the sources of business opportunities? (Pause) Great! The sources
of opportunities are: (1) changes in the environment, (2) technological discovery and
advancement, (3) government’s programs and policies, (4) people’s interest, and (5) past
experiences.
Will you help me recall the essentials in finding business opportunities too? Very Good!
To be able to find business opportunities, you need to have the entrepreneurial mind frame,
entrepreneurial heart flame, and entrepreneurial gut game.
Now that we are all set, let us talk about how we would be able to analyze the market
need. In order to analyze the market need, we need to have a thorough study of our customers
and the environment they are in. after all, as entrepreneurs, our goals is to deliver products or
services that will solve our target customers’ needs or problems So, to do this, we need to
identify the market problems to be solved or the market need to be met. So what is a market
problem? And what is a market need? Any idea?
Well, when we say market problems, these are your target market's stated or
silent problems. As the words suggest, stated problems are those that are visible to the naked eye
and are obviously experienced and identified as problems. On the other hand, silent problems, as
the word suggest are common experiences of people which were not treated as problems, or were
often neglected or ignored and treated as normal events, though at times, it cause
inconveniences. Now, the key to finding a market problem is to listen to people’s frustrations, or
“if only” statements, that arises during interviews. If you really want to solve a market problem,
conducting an interview is one of the best possible ways.
Now let’s talk about what a market need is. The market need consist of the consumer's
interests, desires and needs. It’s easier to sell what consumers want and need than try to sell
something they don’t see the benefit in buying. Market needs inform organizations about what
products to develop; for what customers; at what cost; and through which distribution channels,
reducing the uncertainty that a new product/service development always brings with it.
Take note that whatever it is that we are trying to sell, our goal in entrepreneurship is
either solve a problem through our offerings or satisfy the needs of our customers.
 You now have an idea about what market problems and market needs are. This time, to
help us further in analyzing the market, I will introduce to you the three types of market. By the
way, please take note that the market that I am referring to here are our customers.
The first type of market where potential problems or needs may exist is the existing
market. Again, existing market. These existing market or customers are people who have
already purchased your product. Again, these are people who have purchased your products. For
example, if you are selling lanterns for Christmas and Melanie bought one lantern from you, she
is considered as your existing market. This also means that if Melanie is satisfied with the lantern
she bought, she might buy another one from you. Existing customers usually make repeat
purchases. They are people you should take care of so that you will turn these customers into
what we locally call as “suki” or those who patronize your product. Mostly, this kind of market
would willingly tell you about what they like or hate about your product, which is a good source
of market need or market problem. Existing customers. That should be easy to remember right?
Well, the second type of market where we could potentially search for market problems
or market needs are the so-called prospects. Again, prospects or prospect market. They are
people who have not yet purchased your product but are considering it, which is why they are
called prospects. Again, they have not bought your products, but are considering it. Let us
connect to our previous example with Melanie. Remember that Melanie has bought one lantern
from you. Let us say that Jessa was with Melanie when she bought a lantern, and Jessa was also
trying to choose lanterns but didn’t push through with buying the product because she either
doesn’t have enough money or she is looking for a more beautiful lantern than the ones you’re
selling. This time, since Jessa is considering your product, she is a prospect market. Once again,
I would like you to take note that prospects have not bought your products yet but they are
considering it.
If we come to think of it, prospects are good sources of business ideas. Jessa in the
example can tell you more about how much you should offer the lanterns at a more affordable
price. Or she can tell you about some problems in the design of your product or she could make a
comment about other good designs from her point of view, which may also be pleasing to other
buyers. You see, prospects play an important role in identifying market problems and market
needs.
The third type is known as target market. Again, target market. These are people who
are not currently looking for a solution. Again, these are people who are not currently looking for
a solution, this means, that they have neither bought your products, nor do they have interests in
buying such products. Though this might be the case, they could still be good sources of market
problems/needs. If this was a game, they are just spectators, however, spectators can tell you
more about how to win a game than the ones who are really playing. Did you get my point?
What I wanted to say is that, the target market sees more market problems than the existing or
prospect market. Also, they could sense more market needs better than the existing or prospect
market. This is due to the fact that an outsider usually sees what’s going on because they are the
most objective ones.
Now, it is a given fact that when we search for opportunities, we look into the market
need and problems, and while looking into these, we listen to our market. When I say market, I
am referring to the existing, prospect, and target market. When listening to your market, there are
things that you should avoid.
First, you need to avoid focusing only on innovation and competition. As an
entrepreneur, it is easy to focus on building innovative solutions that do not connect directly to
market problems; however, just because you can innovate doesn’t always mean that you
should. Too much innovation means too much risk. Why? Because, the newer the product or
service is, the more we should work on the acceptance of these products, most specially because
there’s already a lot of variety offered into the market. Innovation also costs money. It is not so
good to have full focus on innovation because we might lose track of our finances or the
acceptability of the product we’ve innovated. Bear that in mind, my dear students. Competition
is also something that we should focus but it must not be focused that much since we might
abuse the working abilities of our workers, machines or other resources just to catch up with our
rival. Always remember that balancing things work best.
Second, avoid focusing only on your existing customers. Customers are a source of
input, but not the only source of input. This is why talking to prospects and target market users,
who have not purchased your products, is the key to rounding out the picture. They often see
things beyond your current product. This is the same thing as when you are a spectator in a chess
match. You are not the one playing but you can see the whole gameplay and you know what
pieces you shall move to do a checkmate.
Third, avoid focusing only on revenue. By listening only to prospects, and delivering
only what the next customer wants, you will gain revenue but miss out on market opportunities.
It is critical to find a balance between prospects and customers to ensure that your future revenue
is protected, while still keeping existing customers happy. In short, you need to balance your
earnings, the quality of your product, and the service that you provide to have happy customers.
Revenues shall then follow.
There you have it! You are already equipped with knowledge on what a market need or a
market problem is, including the three types of market and the things you should avoid when
listening to them.
Before moving forward, let us have a recap of the things we have discussed so far. We
said that market problems are your target market's stated or silent problems. On the other hand,
market needs consist of the consumer's interests, desires and needs.
We also talked about the three types of market where potential problems or needs may
exist. These are the existing market, prospect market and target market.
Next, we talked about the things that you must avoid when listening to your market. First, you
need to avoid focusing only on innovation and competition. Second, avoid focusing only on
your existing customers and third, avoid focusing only on revenue.

Now, have you started to realize how amazing an entrepreneur could be? Actually,
entrepreneurs are really amazing. Why? Because they look for possible problems and solve it
beforehand, rather than wait until the problem happens before it gets solved. You may call the
entrepreneurs, “doctors” this way, since they tend to prevent problems from occurring by
inventing advanced treatments.
So here’s one last thought: When finding problems, find something worth solving. You
might then ask: “How do I know if the problem I found is worth solving? Well, that’s easy! Just
see to it that the problem is urgent, universal, and the buyers will surely pay to have this
problem solved. Again, it has to be a kind of problem that is urgent, universal, and where buyers
will surely pay to have it solved.
Now, let’s have a simple exercise. I’ll be giving you a scenario and from this scenario, I
would like you to identify the market problem to be solved or the market need to be met. Ready?
Here’s the scenario: Missy is fund of watching TV which is the reason why she often
sleeps late at night. However, every after the next day, she forgets where the TV remote control
was placed so she goes through the same problem of finding out where the remote control is
every morning. So, what seems to be the problem here?
Very good! The problem here, is that Missy regularly misplaces their TV remote control.
Well, have you experienced this problem? I’m sure there was once when you have really
experienced this. Actually, customers did not identify this as a problem that needed solving, but
it was a common issue among everyone. Thus, this is one market problem that needs a
corresponding solution.
Take note that our goal is to first identify the market problem or the market need that has
to be solved. On the next succeeding sessions, we will figure out how we are going to provide
solutions through a product or a service. Let’s just take things easy. Okay!
For now, I would like you to get your activity sheet and answer the activities provided for
you. For Activity #1, Identify the market problem to be solved or the market need to be met from
the scenario given. Just identify the market problem or the market need like what we did in our
previous example where a market problem does exist, and that is the TV remote control which
was often misplaced by Missy. For Activity #2, Identify at least 3 market problems or market
needs that would need to be solved. Bear in mind that these problems or needs should be current,
universal, and that buyers will surely pay to have this problem solved. Apply your knowledge in
opportunity seeking and list down your answers in the space provided. It would be much better if
you look into local market problems or needs as this is where you have the most experience.
So, that will be all for today, and I am very excited to read all of your responses. (Pause)
This has been a fun-filled learning episode! Thank you for your time! This has been your teacher
in the airwaves, teacher _______________. Goodbye everyone! Stay safe and sound, and God
Bless!!!

Prepared by: Ms. Rhona Mae P. Labadan

 ENTREPRENEURSHIP
Learning Episode 4 of First Quarter
RBI Class Time: 5:30 – 6:00 PM (Saturday)

SELF-LEARNING MATERIAL

MELC: Analyze the market need.

Subtask: Identify the market problems to be solved or the market need to be met.

Market Problem vs. Market Need

Market Problems are your target market's stated or silent problems. Stated problems are

those that are visible to the naked eye and are obviously experienced and identified as problems.
Silent problems are common experiences of people which were not treated as problems, or were
often neglected or ignored and treated as normal events.
Market Needs consist of the consumer's interests, desires and needs. Market needs
inform organizations about what products to develop; for what customers; at what cost; and
through which distribution channels, reducing the uncertainty that a new product/service
development always brings with it.

Three types of market

1. Existing market – they are people who have already purchased your product
2. Prospect market – they are people who have not yet purchased your product but are
considering it.
3. Target market – they are people who are not currently looking for a solution.

What to avoid when listening to your market:

1. Avoid focusing only on innovation and competition.
2. Avoid focusing only on your existing customers.
3. Avoid focusing only on revenue.

Sample scenario. Direction: Identify the market problem to be solved or the market need to be
met.

Missy is fund of watching TV which is the reason why she often sleeps late at night. However,
every after the next day, she forgets where the TV remote control was placed so she goes
through the same problem of finding out where the remote control is every morning.

Question: What seems to be the problem here?

Answer: Missy regularly misplaces their TV remote control.
 Activity No. 4
Entrepreneurship
Quarter 1: Learning Episode 4
RBI Class Time: 5:30 – 6:00 PM (Saturday)

Name: _________________________________________ Date: _________

School: ________________________________________ Score: _________

MELC: Analyze the market need.

Subtask: Identify the market problems to be solved or the market need to be met.

Activity #1: Identify the market problem to be solved or the market need to be met from the
following scenario:
Maria was working on her vegetable garden. While cultivating the soil, she noticed so many
weeds and so she decided to work on weeding the areas around her vegetables. She brought with
her a sack, a pair of gloves and a bolo. The weeding process took her about an hour as the sack
won’t stay open while she was weeding.

Question: What is the market problem present in the scenario?

Answer:
_____________________________________________________________________________
_____________________________________________________________________________

Activity #2: Identify at least 3 market problems or market needs that would need to be solved.
Bear in mind that these problems or needs should be current, universal, and that buyers will
surely pay to have this problem solved. Apply your knowledge in opportunity seeking. List your
answers below, an example is given for you:

Example: Market Problem: COVID 19

1. ________________________________________________________________________

2. ________________________________________________________________________

3. ________________________________________________________________________

_________________________________________ Date: ______________

Signature over Printed Name of the Parent/Guardian