This module is designed and written with you in mind.

It is based on the Most Essential Learning

Competencies (MELCs). It is here to help you master this applied subject on Entrepreneurship.

It contains information about marketing analysis and its parts. It includes activities in writing
market analysis such as identifying your target market, competitors, and SWOT analysis.

This should be accomplished within a week. All activities that require online submission should

be coordinated with your teacher. Save the date for your online class and be updated with teachers’

announcements in the google classroom or FB messenger.

CONTENT STANDARD: The learner demonstrates understanding of concepts, underlying principles, and
processes of developing a business plan.

PERFORMANCE STANDARD: The learner independently or with his/her classmates presents an

acceptable detailed business plan.

OBJECTIVES:

At the end of the module, the learners will be able to:

1. Identify the parts of market analysis.

2. Determine who the customers are in terms of target market, customer requirements and
market size.
3. Describe the value proposition that differentiates one’s product / service from existing
products/services.
4. Show ability in formulating SWOT Analysis for the proposed business.

1
SHS 12_APPLIED SUBJECT_ENTREPRENEURSHIP
QUARTER 1 – WEEK 5 and WEEK 6
 For the past three months, our country has experienced the pandemic. Based on your
observation, list down existing companies that are experiencing great opportunities and threats during
this COVID-19 times. Copy the table then write your answer in your notebook.

IMPACT OF COVID -19 TIMES

COMPANIES
POSITIVE NEGATIVE

1.

2.

3.

4.

5.

One of the most important parts of any business plan is market analysis. It is also essential in any
startup strategy. It can help reduce risk because if you really understand your potential customers and
market conditions, you will have a better chance of developing a viable product or service. It will help you
get exactly what makes you different from your competitors. This lesson will let you know who your real
market is and how large enough your market is to build a sustainable business.

Lesson Market Analysis

1 By: Bernadine R. Oray

What is a market analysis?

● A market analysis is a quantitative and qualitative assessment of a market. It investigates the size
of the market both in volume and in value which includes the various customer segments and
buying patterns, the competition, and the economic environment in terms of barriers to entry
and regulation.

3
SHS 12_APPLIED SUBJECT_ENTREPRENEURSHIP
QUARTER 1 – WEEK 5 and WEEK 6
 ● It studies the attractiveness and the dynamics of a special market within a special industry. It is
part of the industry analysis and thus in turn of the global environmental analysis. Through all
these analyses, the strengths, weaknesses, opportunities, and threats (SWOT) of a company can
be identified. Finally, with the help of a SWOT analysis, adequate business strategies of a company
will be defined. (Wikipedia; last edit May 14, 2020)

A market analysis consists of four parts:

1. Industry overview: This part describes the current state of your industry and where it is headed.
Your industry overview shows investors that you understand the larger landscape that you are
competing in. For example, if you are opening a restaurant, you will want to understand the larger
trends of dining out. Are people eating at restaurants more and more over time? Or is the market
potentially shrinking as consumers take advantage of grocery delivery services?
2. Target market: These are your actual customers. You will detail how many of them are there,
what their needs are, and describe their demographics.

Defining the Target Market

● Market size: The market size is how many potential

customers there are for your product or service.
● Demographics: Describe the customer’s typical age,
gender, education, income, and more.
● Location: Identity customers in a specific location or
region.
● Psychographics: Describe the customer’s likes and
dislikes. A better way to think about psychographics
is to think about your customer’s lifestyle and
personality.
● Behaviors: This is essentially an extension of some of
the psychographic information. Explain how your
customers shop for and purchase products like
This infographic is taken from pinterest.com.
yours.
● Trends: Customer behavior is always changing. If there are trends that you have noticed with
your target market, detail them here.

When you have more than one type of customer, you do what is called market segmentation.
This is where you group similar types of customers into segments and describe the attributes of each
segment.

4
SHS 12_APPLIED SUBJECT_ENTREPRENEURSHIP
QUARTER 1 – WEEK 5 and WEEK 6
3. Competition: This part describes your competitors’ positioning, strengths, and weaknesses.
When you are analyzing the competition, you should look at the following areas.
Direct competitors
These are companies that are offering very similar products and services. Your potential
customers are probably currently buying from these companies.
Indirect competitors
Think of indirect competition as alternative solutions to the problem you are solving. This is
particularly useful and important for companies that are inventing brand-new products or
services. For example, the first online task management software was not competing with other
online task managers—it was competing with paper planners, sticky notes, and other analog to-
do lists.
How you are different
You do not want to be the same as the competition. Make sure to discuss how your company,
product, or service is different than what the competition is offering. For a common business type,
such as hair salons, your differentiation might be location, hours, types of services, ambiance, or
price.
SWOT Analysis

SWOT stands for strengths, weakness, opportunities, and threats. It matches internal strengths
and weaknesses up against opportunities and threats (Christina, n.d.). Strengths and weaknesses
are internal factors which we can control. And opportunities and threats are external factors that
businesses cannot control but can however impact on. When using strengths and weaknesses,
businesses need to collect raw data to get information. Businesses can get information by
customer feedback, employee surveys. Furthermore, businesses also can identify the capability if
it is weakness or strengths, resources, and process. Opportunities and threats are the external
factors. Business can get information from secondary data like environmental information,
industry information and competitive data. The purpose of the business use of the SWOT analysis
is to get the information from it and match each other to develop the ideas and get into goal
statements to form strategic development (Olsen, 2008). (Wikipedia; last edit May 14, 2020)

4. Pricing and forecast: Your pricing will help determine how you position your company in the
market, and your forecast will show what portion of the market you hope to get.

Cost-based pricing. This approach bases the selling price on its relation to cost. Mark-up pricing
is an instance of this general approach. In musical instrument sales, for instance, most instruments
have one of two markups, an A markup, where the cost of drums and guitars is 50 percent of the
retail price, and a B markup, where the cost of keyboard instruments is 60 percent of the retail
price. These are merely conventions; retailers of different goods may have markups with different
percentages. One interesting consequence of markup pricing is that within an industry it can
establish a norm, thereby effectively reducing the impact of competition.

5
SHS 12_APPLIED SUBJECT_ENTREPRENEURSHIP
QUARTER 1 – WEEK 5 and WEEK 6
 Competitive pricing. Competitive price, as the name suggests, looks to the seller's competition
before setting a price. What are they selling the product for? The seller may then set the same
price, knowing this deprives the other seller of the price advantage or, more competitively, may
offer to undercut any bona fide offer by a small percentage.
Demand-based pricing. This approach may be the consequence of either growing demand or
diminishing demand. In the first instance, a seller may increase the selling price of something in
limited supply. For an instance, a product in high demand may be no longer manufactured; in
response to the increasing scarcity of the product, the seller may raise the selling price. Discount
sales, on the other hand, often represent a form of demand-based pricing, where decreasing
demand necessitates moving the seller price lower, perhaps several times, to clear inventory.

Market survey is the survey research and analysis of the market for a product/service which includes
the investigation into customer inclinations. A study of various customer capabilities such as
investment attributes and buying potential. Market surveys are tools to directly collect feedback from
the target audience to understand their characteristics, expectations, and requirements.

Activity 3.1 Describe the target market of your proposed business/product by accomplishing the
worksheet below. You may copy this in your notebook or encode in a document file to answer.

6
SHS 12_APPLIED SUBJECT_ENTREPRENEURSHIP
QUARTER 1 – WEEK 5 and WEEK 6