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Redeveloped Division Initiated Self-Learning Module

Department of Education
i – Division of Palawan
Entrepreneurship – Grade 12
Redeveloped Division Initiated - Self-Learning Module
Quarter 1 – Module 2: Recognize a Potential Market: Analyze Market Needs
Second Edition, 2021

Republic Act 8293, section 176 states that: No copyright shall subsist in any work
of the Government of the Philippines. However, prior approval of the government
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Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names,
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holders. Every effort has been exerted to locate and seek permission to use these
materials from their respective copyright owners. The publisher and authors do not
represent nor claim ownership over them.

Published by the Department of Education, Division of Palawan

Schools Division Superintendent:
Roger F. Capa, CESO VI
OIC - Assistant Schools Division Superintendents:
Rufino B. Foz
Arnaldo G. Ventura, Ph.D.

Development team for

Development Team
Redevelopment Activity

Writer: Edward V. Benitez Writer: Edward V. Benitez

Editors: Richelle A. Macasilhig, Mark G. Editors: Mark G. Javillonar, Marianne R.
Javillonar, Marianne R. Valdez Valdez
Illustrator: Illustrator:
Layout Artist: Mark G. Javillonar Layout Artist: Mark G. Javillonar
Reviewer: Eric N. Quillip Reviewer: Sean A. Catelo
Management Team: Management Team:
Aurelia B. Marquez Aurelia B. Marquez
Rodgie S. Demalinao Rosalyn C. Gadiano
Eric N. Quillip Rodgie S. Demalinao
Sean A. Catelo

Department of Education – MIMAROPA Region – Division of Palawan

Office Address: PEO Road, Barangay Bancao-Bancao, Puerto Princesa City
Telephone: (048) 433-6392
E-mail Address: palawan@deped.gov.ph
Website: www.depedpalawan.com

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Introductory Message
This Self-Learning Module (SLM) is prepared so that you, our dear learners, can
continue your studies and learn while at home. Activities, questions, directions,
exercises, and discussions are carefully stated for you to understand each
lesson.

Each SLM is composed of different parts. Each part shall guide you step-by-
step as you discover and understand the lesson prepared for you.

Pre-tests are provided to measure your prior knowledge on lessons in each SLM.
This will tell you if you need to proceed on completing this module or if you
need to ask your facilitator or your teacher’s assistance for better
understanding of the lesson. At the end of each module, you need to answer
the post-test to self-check your learning. Answer keys are provided for each
activity and test. We trust that you will be honest in using these.

In addition to the material in the main text, Notes to the Teacher are also
provided to our facilitators and parents for strategies and reminders on how
they can best help you on your home-based learning.

Please use this module with care. Do not put unnecessary marks on any part
of this SLM. Use a separate sheet of paper in answering the exercises and tests.
And read the instructions carefully before performing each task

If you have any questions in using this SLM or any difficulty in answering the
tasks in this module, do not hesitate to consult your teacher or facilitator.

Thank you.

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 Entrepreneurship
12 Recognized a Potential Market:
First Quarter Analyze Market Needs
Week 2

MELC: Recognize a potential market: Analyze Market Needs

(TLE_ICTAN11/12PC-Ia-1)

Objective/s:
1. Identify the product/service to be introduced in the market;
2. Employ SWOT Analysis in analyzing market needs; and
3. Recognize a potential market for a particular product/service.

What I Know

Directions: Read each item very carefully and write your answer on a separate
sheet of paper.
1. Which of the following reasons could be the best option why we need to
recognize a potential market?
a. To earn money
b. To establish a business name in the market
c. To satisfy the ongoing needs of an individual
d. To attract more demand from the market

2. This new product service helps an entrepreneur suggest and market a new
product.
a. The consumer
b. Distribution channels
c. Research and Development
d. The establish products and services in the market

3. Which of the following is an excellent way of generating and screening

ideas and concepts?
a. Problem Inventory System c. Focus Group Discussion
b. Brainstorming d. Case study analysis

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4. Which of the following tools can an entrepreneur use to help him decide
what most suitable business idea he could introduce in the market?
a. PESTLE c. SWOT Analysis
b. Environmental Scanning d. Product Survey

5. Which of the following combination may be creating a significant

advantage for your proposed business?
a. Strengths and Opportunities
b. Strengths and Weaknesses
c. Weaknesses and Threats
d. Weaknesses and Opportunities

6. Which of the following is portrayed by the statement: I love the business;

this is my passion, and I love doing it every day?
a. Strengths c. Opportunities
b. Weaknesses d. Threats

7. The statement: The business is easily copied, I might lose my market share,
pertains to which of the following elements?
a. Strengths c. Opportunities
b. Weaknesses d. Threats

8. The statement The number of people who want to have a car is continuously
increasing, is an example of which of the following elements?
a. Strengths c. Opportunities
b. Weaknesses d. Threats

9. It refers to a specific group of people you want to reach with your marketing
message.
a. A marketer c. An Entrepreneur
b. A target market d. An Investor

10. Which of the following recognizes the total number of potential buyers of
a product or service within a given market?
a. Market value c. Market potential
b. Market share d. Market size

11. Which of the following talks about the amount of money spent on the
product each month or year?
a. Market value c. Market potential
b. Market share d. Market size

12. It is an action undertaken to collectively generate an idea by focusing on

one’s expertise and sharing it with other people.
a. Focus group discussion c. Problem inventory analysis
b. Brainstorming d. Market survey

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13. This source of new product/service helps you understand who is going to
patronize the product.
a. The consumer
b. The government
c. The distribution channels
d. The established products and services in the market

14. Which of the following is responsible for defining the target market?
a. Manager c. Marketer
b. Investor d. Customer

15. What does the acronym SWOT stand for?

a. Strengths, Willingness, Outstanding, Threats
b. Strong, Willingness, Opportunities, Treats
c. Strong, Weaknesses, Outstanding, Threats
d. Strengths, Weaknesses, Opportunities, Threats

What is It

To be distinguished in the market, entrepreneurs must have an inventive

attitude. Furthermore, identifying a potential market may assist entrepreneurs
in identifying viable and profitable products/services to sell in the marketplace.

Recognizing a potential market and analyzing its demands are a smart

place to start for an entrepreneur who wants to know and comprehend
exactly what new items should be offered in the marketplace. This will enable
them to meet the individual's ongoing needs. It may also assist entrepreneurs
in seeing trends and adapting to them to become more reliable in providing
items to clients. Recognizing a potential market, like finding business prospects,
is a crucial first step in starting a firm. According to some, it is an entrepreneurial
opportunity, a favorable collection of circumstances that will allow an
entrepreneur to produce new products/services by combining for-profit and
corporate social responsibility resources for persons and communities.

You might be able to survey this section to understand market needs

better. This will be done adequately to determine what clients prefer to buy

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and before a business is started. Always remember that getting the type of
information you need ahead of time is critical to the success of your new
product or service on the market.

New Product/Services Idea Generation

New Product Sources
1. The Consumer
✓ Understand the needs and wants of the people who are going to
patronize the product. Submit potential ideas in accordance with
the needs of the consumer.
2. The established Products and Services in the market
✓ Also, monitoring the existing products and services in the
marketplace could help your product idea generation become
even more credible in what product/service to offer in the market.
3. The Distribution Channels
✓ It will help you suggest and market a new product
4. The Government (Government Regulations)
✓ Records from the Patent office can give you an idea of what to
offer in the market
5. Research and Development
✓ Research (feasibility study) for a particular product/service will
help you understand the market's needs.

Ways of Generating New Product/Service

1. Focus Group Discussion
It is an excellent way to generate and screen ideas and concepts.
It will teach entrepreneurs to be more creative in developing what
product/service to offer.
2. Brainstorming
Through brainstorming, entrepreneurs share their expertise and
ideas with others to develop better business ideas or decisions.
3. Problem Inventory Analysis
It is a process of studying the weak points of a product/service in
the market that results in identifying business opportunities.

SWOT Analysis
A tool that entrepreneurs can use to help them decide the most suitable
business idea they could introduce in the market is SWOT Analysis. It will also
help them focus on the possible problem that arises in the product/service and
the potential advantages of each idea.

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SWOT ANALYSIS stands for:

S = STRENGTH (Internal) W = WEAKNESS (Internal)

O = OPPORTUNITY (External) T = THREATS (External)

Internal Factors
 Strengths – are the specific positive qualities of your planned business
that will offer it an advantage over similar businesses and competitors.
 Weaknesses – are the things that your company will not be able to do
as well as other companies.
External Factors
 Opportunities – are ongoing prospective advancements that will benefit
a company or organization.
 Threats – are events that may negatively affect your business.

If you already identified your SWOT, try matching your strengths and
opportunities to ascertain whether they will give your business an advantage.
For example, customers are looking for a service that matches your
proposed product/service (that is an opportunity). If you are very service-
oriented and care about details (a strength), you may be creating a significant
advantage for your proposed project business. Weaknesses and Threats can
also be matched to determine if you can improve your weak points to cope
with the threats.

Sample data using SWOT Analysis in a particular business:

SWOT Analysis Matrix

Business Idea: Carwash Business
Strengths
• I have some work experience in
the carwash business
• I have enough capital
• I enjoy meeting people
• I am good at car washing
Weaknesses
• I do not have an available spot
for the business
• Sources of materials needed in
the business are limited
• I have no experience managing
staff

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 Opportunities Threats
• There is no other car wash • The business is easily copied, I
business shop in the town might lose my market share
• Other shops are expensive • The cost of renting the shop
• A large number of people in the space is high
community own a car
• The number of people who wants
to have a vehicle is continuously
increasing

Target Market Identification

The big question an entrepreneur needs to answer is to whom he will sell
his product/service? Every business cannot succeed without a customer.
Therefore, it is vital to know who your customer will be. Properly identify your
target market before starting a business.

Target Market Definition

A target market is the specific group of people you want to reach with
your marketing message. They are the people who are most likely to buy your
products or services, and they are united by some common characteristics,
like demographics and behaviors.

A marketer is responsible for defining the target market. It is the

foundation of all elements of your marketing strategy, starting from how you
develop and name your products or services right through to the marketing
channels you use to promote them.

Market Size
The market size is the total number of prospective customers of a
product or service inside a particular market and the total money these sales
may generate. To recognize a potential market for a particular product,
surveying the market size is necessary. Every entrepreneur needs to understand
the different questions when assessing or recognizing a potential market for a
particular product. It is needed to picture out the size of the market for a
particular type of product/service and the value of the market (the amount of
money spent on that product each month or year).

It is also possible to collect data and information about the types of

people who buy a particular product/service and where they buy it. It may
also help the entrepreneur to identify his target market. The entrepreneur can
analyze the information gathered from potential consumers to get a good

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idea of the product's quality characteristics that consumers prefer, the total
demand for the product/service, and the market's total value. It involves
making several assumptions, and it is essential to consider the following:
1. Are the people interviewed a representative of all potential consumers?
2. Was the number of people interviewed enough?
3. Were people giving accurate information?

Competitors
Competitors are significant to the success or failure of a new business.
The entrepreneur should recognize that there are different types of
competitors.
✓ General competitors
✓ Type competitors
✓ Brand competitors

Sample questionnaire about market size and value

Questions Answers
About the market size:
1. How often do you buy this product? Daily Weekly Monthly
2. Do you buy different amounts at different Yes No
times of the year?
3. When are the times that you buy the most?
4. How much do you buy each time? _______pc
5. When are the times you buy the least?
6. What is the amount of food in the pack? P______per_____pc.
About the market value:
7. How much do you pay for a pack of food? P
8. What is the price difference for larger or P
smaller packs?
9. Does the price change at different times of Yes No
the year?
10. When is the price highest?
11. When is the price lowest?
About the customer:
12. Would you say that you have a low, Low Medium High
medium, or high income in your household?
13. To which age group does you belong? 1-20 21-40 41-60
(check only one)
14. Sex Male Female
About Sales outlets:
15. Where do you usually buy this food: (check Food store Local shop
one only) Kiosk Supermarket
Others (pls specify)

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Sample questionnaire for a new product (Tomato Jam)
Background information
1. Do you eat jam? Yes No
2. What types of jam do you like most? 1.
(pls specify) 2.
3.
3. Would you try tomato jam? Yes No Not sure
Customer’s perspective on the new product
Questions Very Aver Very
Good Bad
Good age Bad
1. What do you think of the color of this
tomato jam?
2. Do you like having the seeds in a
jam?
3. What do you think about the flavor of
this jam?
4. Do you like the texture of the jam?
5. What do you think about the jar?
6. What do you think about the label?
7. What else do you like about this jam?
8. I there anything that I can do to
improve this jam?

What I Can Do
Activity 1: This is My Product/Service!
Directions: Think of a new product/service that you want to introduce in the
market and then accomplish the template below:

NEW PRODUCT/SERVICE TEMPLATE

A. What is my product/service?
B. What does my new product/service
offer?
C. How is it different from the existing
products/services?

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D. How did you come up with the
product idea?
E. What is/are the reason/s for choosing
the product/service to offer in the
market?
F. Who are your target customers?
G. Why will they buy the
product/service?
H. How will the product/service be
promoted and sold/offered?
I. Who are my competitors?
J. Describe the product/service using the five senses

Sense of Sight Sense of Hear Sense of Taste

Sense of Smell Sense of Touch

Rubrics for Rating Activity 1

Points Remarks Descriptions
5 Excellent Remarkably developed the content, and learners
demonstrate a complete understanding of what should
be done.
4 Very Good The work is of high quality and is presented very well.
3 Good The work is developed satisfactorily, and the learners
complied with essential requirements of what should be
done, and the idea is acceptable.
2 Fair The work is below the acceptable average, and the
concept of work done is confused or vague.
1 Poor Almost none of the basic requirements were correctly
done. The writing is disorganized and very difficult to
understand.

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Activity 2: Let’s do SWOT Analysis

Directions: Use the product/service you identified from Activity 1 and prepare
a SWOT analysis using the template below.

SWOT ANALYSIS
My proposed
Competitor A Competitor B
product/service

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

Rubrics for Rating Activity 2

Score
Descriptions 5 3 1
The listed strengths/ Satisfactorily Poorly
weaknesses/ identified the presented the
Identifying
opportunities/ strengths/ subject and not
Strengths /
threats are weaknesses/ well delivered
Weaknesses /
extremely well opportunities/
Opportunities
stated. threats and
/ Threats
Comparison is well comparison is fairly
presented presented

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 What’s More
Activity 3: Environmental Scanning
Directions: This activity aims to let you apply the concepts of environmental
scanning in determining business ideas. Take time to look around your
community and complete the table below

Business Ideas
Natural Resources

Waste Product

Substitute Product

Rubrics for Rating Activity 3

Points Remarks Descriptions

Extremely developed the content, and learners
5 Excellent demonstrate a complete understanding of what should
be done.
Very
4 The work is of high quality, and it was presented very well.
Good
The work is developed satisfactorily, and the learners
3 Good
complied with basic requirements, and it was accepted.
The work is below the acceptable average, and the
2 Fair concept of work done is confused or vague. The learner
has a poor understanding of what must be done.

Almost none of the basic requirements were appropriately

1 Poor
done. The work is disorganized and hard to understand.

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Activity 4: Recognizing Potential Market
Directions: Prepare a survey questionnaire for the following concerning topics:

1. About the market size

2. About the market value
3. About the customer
4. About the sales outlet
5. About the new product/service you wanted to offer in the market
(refer to activity 1)
Note: Use the sample survey questionnaires presented in the What is it part of
this module for your reference.

Rubrics for Rating Activity 4

Weight
Descriptions
5 4 3 2 1
The learners provided a well-developed survey
questionnaire about the market size
The learners provided a well-developed survey
questionnaire about the market value
The learners provided a well-developed survey
questionnaire about the customers
The learners provided a well-developed survey
questionnaire about the sales outlet
The learners provided a well-developed survey
questionnaire about the new product/service

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 What I Have Learned

At this point, we will see how much you understand from the lesson discussed
and the activities you have done.
Activity 5: Fill in the Blanks
Directions: Read the sentences carefully and complete each by filling in the
blanks with the correct word/s.
1. Recognizing a potential market is a ___________________ and
__________________ to begin your business venture.
2. There are five (5) new product sources namely, ____________;
______________; ________________; ________________; and _____________.
3. _________________ will teach entrepreneur to be more creative in
developing what product/service to offer.
4. If the entrepreneur has an area where he/she can focus on, the
effective development of idea can occur, this are what we
called____________________.
5. A tool that an entrepreneur can use to help them decide what the most
suitable business idea is they could introduce in the market is
__________________.
6. SWOT stands for; S________________; W____________________;
O_____________T__________.
7. ______________ are the specific positive aspects that will give your
proposed business an advantage over similar business ventures and
competitors.
8. ______________ are on-going potential developments that will be good
for your business.
9. ________________are the things that your business will not do as well as
other business.
10. ________________are events that may negatively affect your business.

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 Assessment

Directions: Read each item carefully and write your answer on a separate
sheet of paper.
1. Which is an excellent way to generate and screen business ideas and
concepts?
a. Brainstorming c. Problem Inventory Analysis
b. Focus Group Discussion d. Market Discussion

2. Which of the following is NOT an example of weaknesses?

a. To obtain exclusive distribution, we worked closely with providers.
b. Older corporations, considered a bit stuck in the past, particularly
among the younger generation.
c. Content provision, particularly entertainment, is adequate but not
exceptional.
d. The leadership team has lately changed, and there is no track record to
speak of.
3. Which of the following is the specific group of people you want to reach
with your marketing message?
a. Market size c. Target Market
b. Positioning d. Competitors

4. Which of the following is an example of Strength?

a. It will be difficult to build a reputation on the internet.
b. We have built and maintained a solid financial foundation.
c. To corner the market, major breweries control supply and distribution
methods.
d. A new generation of consumers appreciated high-end bottling and
labeling.

5. Which of the following is the tool that Entrepreneurs can use to help them
decide the most suitable business idea they could introduce in the market?
a. SWOT Analysis c. PESTEL
b. Research d. Case Study

6. Which of the following talks about the process of studying the weak points
of products/services in the market that results in identifying business
opportunities?

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 a. Brainstorming c. Problem Inventory Analysis
b. Focus Group Discussion d. Market Discussion

7. Which of the following is an example of Threats?

a. Excellent verbal communication.
b. I cannot seem to concentrate on the solo job.
c. In a related department, a manager is about to retire.
d. This job may need a lot of individual work.

8. Which of the following helps you suggest and market a new product?
a. The Distribution Channel c. The Consumer
b. Research and Development d. The Government

9. What do you call a person who is responsible for defining the target market?
a. Marketer c. Manager
b. Investor d. Customer

10. Which of the following does NOT belong to the New Products/Services
Sources?
a. The Consumer
b. The producers
c. The distribution channels
d. The established products and services in the market

11. Which of the following is an example of Weaknesses?

a. Limited service lines, marketing flaws, and staff management issues
b. Specialized expertise, financial benefits, and technological advantages
c. New technology, a lack of strong rivalry, and new markets or services
are all factors to consider
d. Changes in insurance plans, new or increased competition, and
negative demographic shifts are all factors to consider

12. Why do we need to recognize a potential market?

a. To earn money
b. To establish a business name in the market
c. To satisfy the ongoing needs of an individual
d. To attract more demand from the market

13. Which among the options helps the company identify and understand the
market’s needs?
a. Consumer c. Government
b. Research and Development d. Distribution channel

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 16
What I know Activity 1, 2, 3, and 4 Assessment
1. C Learners’ answers might vary. Please see the 1. B
2. B rubrics prepared to grade the assessment 2. A
3. C 3. C
4. C Activity 5 4. C
5. A 1. Central, key points 5. A
6. A 2. The consumer; The established products and 6. C
7. D services in the market; The distribution channels; 7. D
8. C 8. A
The government (Government Regulations) and
9. B 9. A
Research and development
10. D 10. B
3. Focus group discussion
11. A 11. C
12. B 4. Brainstorming 12. B
13. A 5. SWOT 13. B
14. C 6. Strengths; Weaknesses; Opportunities; Threats 14. D
15. D 7. Strengths 15. A
8. Opportunities
9. Threats
10. Weaknesses
Answer Key
services
d. The world's leading provider of ultra-high-capacity mobile network
speak of
c. The leadership team has lately changed, and there is no track record to
b. Reinvigorate our brand after a great debut.
a. Government laws are changing.
15. Which of the following is an example of Opportunities?
b. Market share d. Market size
a. Market value c. Market potential
a product or service within a given market?
14. Which of the following recognizes the total number of potential buyers of
 References

Edralin, Divina M. Entrepreneurship. Philippines: Vibal Group, Inc, 2016.

Escareal-Go, Chiqui and Goh Josiah. Entrepreneurship: Starting an Enterprise.
Have an innovative mindset. Philippines: Josiah and Carolina Go
Foundation, Inc, 2018.
De Guzman, Angeles A. Entrepreneurship. Philippines: Lorimar Publishing, Inc,
2018.
(ILO), International Labour Organization. Generate your Business Idea.
Switzerland: International Labour Office, Enterprise Department-Geneva
ILO, 2015.
Macatangay, Leah Alvino. Entrepreneurship. Philippines: SalesianaBooks By
Don Bosco Press, Inc, 2015.
Newberry, Christina. “How to Find and Target Your Social Media Audience”
Last Modified July 8, 2020. https://blog.hootsuite.com/target-market/

17
For inquiries or feedback, please write or call:

Department of Education – SDO Palawan

Curriculum Implementation Division Office

2nd Floor DepED Palawan Building
Telephone no. (048) 433-3292

Learning Resources Management Section

LRMS Building, PEO Compound
Telephone No. (048) 434-0099

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