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Entrepreneurship
Grade12
1 Quarter - Week Four
st

Analyze the Market Need

OBJECTIVES: This lesson demonstrates an understanding of understanding of concepts, underlying

principles, and processes of developing a business plan.
1. Define Market Need
2. Analyze the market need

INTRODUCTION:
Understanding your customers is the key to success for any startup. If you don’t have a deep
understanding of who your customers are, you’ll have trouble developing products that truly fit their
needs, and you’ll struggle to develop a successful marketing strategy.

Task 1:
Can you identify which product has a great market need in today’s world?
Choose one and explain

1. Was it easy for you to find the market need? If no, what were your difficulties?
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2. How did you able to identify the market need?

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3. Based on the activity, what is a market need?

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DISCUSSION:
Potential business opportunities occur when a market need exists. This market need is
preferably one that has not yet been targeted or not yet been targeted effectively. Therefore, a new
entrepreneur wanting to start and run a successful business will need to find a product or service that
isn’t already available, or one that can be improved on. A starting point might be to find out what is
missing in the local area.
Another way of investigating opportunities might be to ask the question: ‘What can be offered to
other businesses that would help them increase their sales, improve their service, or reduce their costs?’
A business can service other businesses. These other businesses have customers who are different
businesses. They may supply office equipment, cleaning, marketing services, transport, IT services,
financial services etc.
Sometimes identifying a potential business opportunity can occur through word of mouth. Are
people complaining about lack of access to a product, or describing a need, or criticising a business? All
of these could present an opportunity
Many new businesses are based on accessing customers through new market places – products
or services can be bought here. Moving away from bricks and mortar reduces costs and allows prices to
be cut. Obviously the internet is the best example of this – Amazon and Ebay are prime examples of new
businesses which are based on price, buying opportunities and convenience.
Finally, business opportunities can come from an entirely new product developed by the
entrepreneur/ inventor. Fortunes used to be made by inventors working with limited resources, but times
have changed, with most new consumer products now coming from mega corporations. However,
exceptions still occur. Worldwide success and the rapid growth of small businesses (or even one-man
bands) have come through using marketing platforms such as the ITunes Store and the Android Market
to promote and sell apps. We have seen then that there are a number of ways of identifying where the
potential lies when establishing a business. But whatever the business and however the opportunity has
arisen, the next stage for the budding entrepreneur is to prepare a business plan.
LET’S PRACTICE
Task 2:

Think of any product that you are using or you want to sell in the future, Identify if there is need in the
market of your product. Write your answer in 3 to 5 sentence

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Task 3:
Market Need Analysis
Mechanics:
1. Think of 5 products that you think that has a demand or a market need.
2. Provide valid information why the product has a demand or has a market need.
3. Do you think that consumers will buy the product?

EVALUATION:
What is a Market Need?
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How do we Analyze Market Need?

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SYNTHESIZE:
Explain what does the quote wants to say:
‘Marketing without market research is like driving with your eyes closed’
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ASSIGNMENT:
Conduct a Market Analysis of any Top milk tea shop in the Philippines. Write in paragraph form.

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