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Entrepreneurship
Grade 12 Module 3: Quarter 1 - Week 3
First Edition, 2020

Copyright © 2020
La Union Schools Division
Region I

All rights reserved. No part of this module may be reproduced in any form without
written permission from the copyright owners.

Development Team of the Module

Author: Edwin M. Lucina, T-III

Editor: SDO La Union, Learning Resource Quality Assurance Team

Illustrator: Ernesto F. Ramos Jr., P II

Management Team:

ATTY. Donato D. Balderas, Jr.

Schools Division Superintendent

Vivian Luz S. Pagatpatan, Ph.D

Assistant Schools Division Superintendent

German E. Flora, Ph.D, CID Chief

Virgilio C. Boado, Ph.D, EPS in Charge of LRMS

Mario B. Paneda, Ed.D, EPS in Charge of Araling Panlipunan

Michael Jason D. Morales, PDO II
Claire P. Toluyen, Librarian II

Entrepreneurship
Module 3: Quarter 1 - Week 3
 Target
Entrepreneur know thy market well!

The above line is a simple reminder that keeps the entrepreneur alert all the time.
The entrepreneur should always exert efforts to know the market he/she wants to
exploit. The more he/she knows about the market the better he will be able to determine
customers’ needs and wants. Entrepreneurs will be able to reach them wherever they
are. This can be possible through conducting a good market research/analysis.

To start a business, first thing to do is to find out what is the demand for the
product or service by conducting a short market research. It is better to do market
survey because they will then properly understand their customers’ needs and how their
business should operate. if an idea is found to be feasible, this knowledge will in turn
give confidence to go ahead when problems are encountered, knowing that their product
is in demand.

It is important to think in advance about the type of information that is needed

and to ask people the same question each time, so that their answers can be compared
and summarized. This should be a short exercise to keep the cost low and in-depth
market research is not necessary for most products.

This learner material will provide you with information and activities that will
help you understand the market.

After going through this module, you are expected to analyze market needs
(CS_EP11/12ENTREP-0a-3-4), specifically to:

 describe the unique selling proposition and value proposition that differentiates
one’s products/services from existing products/services;  determine who
customers are in terms of:
 Target market;
 Customers’ requirements; and
 Market size
 Validate customer-related concerns through:
 Interview/survey;
 Focused Group Discussion; and
 Observation

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 Before you proceed further I want to know your personal idea about the reason
why there is a need for market research/analysis? Answer it on a separate sheet of
paper.

Rubric for Scoring

4 3 2 1
Features
(Expert) (Accomplished) (Capable) (Beginner)
Quality of Answer was Answer was Answer had a Answer had no
Writing written in an written in an little style or style or voice,
extraordinary interesting style voice, gives gives no new
style, very and voice, some new information
informative somewhat information and very poorly
informative and but poorly organized
and well
organized organized organized

Grammar, Virtually no Few spelling A number of So many

Usage and spelling, and spelling, spelling,
Mechanics punctuation or punctuation punctuation punctuation
grammatical error, minor and and
error grammatical grammatical grammatical
errors errors errors that
interfere with
the thought of
the answer.

RUBRIC for Scoring an Informal Essay http://www.google.search.com

Jumpstart

In the previous module, you have learned how to explore the different job
opportunities for entrepreneurship as a career. In this module, you will be learning how
to analyze market needs.

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 To lead you to understanding the lesson well, do the following activity!

Activity1: Read Me! Understand Me!

Direction: Read carefully about market analysis and the seven basic questions that
you must ask in preparation for any major market analysis.

Market Analysis is a quantitative and qualitative assessment of a market. It looks into

the size of the market both in volume and in value, the various customer segments and
buying patterns, the competition, and the economic environment in terms of barriers to
entry and regulation.

“Marketplace Needs” is a marketing concept that relates to the functional or emotional

needs or desires of a market.

Main Customer Needs

1. Price-the amount of money that has to be paid to acquire a given product. It is a

measure of value
2. Quality-it is the degree to which the product or service meets the customers’
expectation.
3. Choice-it the act of making or selecting a decision when faced with two or more
products or service providers
4. Convenience-an element of customers’ experience that saves the customer time
and effort

Components of Market Analysis

1. Customer Description-person or company that receives, consumes or buys a

product or service
2. Customer Perception-refers to customers’ awareness, their impressions and their
opinion about a certain business, product, brand or service rendered
3. Market Trends-perceived tendency of financial markets to move in a particular
direction over time
4. Market Projection-a core component of a market analysis. It projects the future
numbers, characteristics and trends in your target market.
5. Market Competition-the rivalry between companies selling products or rendering
services with the goal of achieving revenue, profit and market share growth.

A convenient way of doing market survey is to prepare simple questionnaires which

can be used by entrepreneurs to remind themselves of which questions to ask.

Sample questionnaires for a new product (Tomato Jam)

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 QUESTIONS ANSWERS

1. Do you eat other types of jam? o YES

o NO

2. Which type of jams do you like List the types

best?
3. Do you think you would like o YES o NO o
tomato jam? NOT SURE

1 2 3 4 5
Very
Good Average Bad Very Bad
good
4. What do you think of the color
of this tomato jam?
5. Do you like having the seed in
you jam?
6. What do you think about the
flavour of this jam?
7. Do you like the texture of the
jam?
8. What do you think about the
jar?
9. What do you think about the
label?
What else do you like about this jam?

Is there anything that I can do to improve this jam?

A. Direction: Prepare a Survey Questionnaire for a new product/service you want

to introduce.

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 Criteria 4(Proficient) 3(Advanced) 2(Fair) 1(Poor)

Questions are Questions Questions Questions

perfectly made, match fairly match fairly match
match the the the various the various
various aspects aspects of the
various aspects aspects of the
of the topic of topic of
of the topic of topic of
the survey. the survey. the the
survey. survey.
Criteria for scoring the prepared survey questionnaire

Discover
Basic Question in Market Analysis

The following table shows the seven basic questions that you must be asked in
preparation for any major market analysis.
WHY Purpose and objective for conducting the market analysis
WHAT Determines the scope and the limitations of the market analysis to be
conducted
WHICH Determines which segment of the market must be studied; this must
be the market segment that the entrepreneur is eyeing
WHO Identifies who among the members of the selected market segment
will participate in market analysis
WHEN Determines the time and timing of the research. This is critical for
entrepreneurs whose product or service will be offered on a time-
constrained markets such as office workers.
WHERE Pinpoint the relevant location of the market research.
HOW Determines the methodology to be used for market analysis.

How to conduct a Market Analysis?

1. Determine the purpose of your study.

2. Look at your industry’s outlook.
3. Pinpoint target customers.
4. Compare your competition.
5. Gather additional data.
6. Analyze your findings.

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 7. Put your analysis into actions.

Market Analysis Methodologies

1. Focus Group Discussion (FGD) is one of the most common qualitative research
tools. It is effective in extracting consumer and non-consumer experiences
regarding products, places or programs. This method can also be used for
generating initial insights.

FGD can be used to address substantive issues such as:

• Understanding consumers’ perception, preferences, and behaviour
concerning a product category;
• Obtaining impressions on a product concept;
• Generating new ideas about older products;
• Developing creative concepts and copy material for advertisements;
• Securing price impressions; and
• Obtaining preliminary consumer reaction to specific marketing programs.

Four Key Decisions to be made in FGD

 Respondents Selection
1. Definition of respondents.
2. Classification of respondents; and
3. Screening of respondents
 Sample size
 Data gathering
1. Selection and preparation of the venue and equipment;
2. Formulation of the discussion agenda; and
3. Drawing out significant insights from the participant.
 Data Analysis
1. Integration of the information gathered;
2. Some observations on respondent’s behaviour; and
3. Listing of recommendations and report writing.

Nine steps in conducting FGD

 Develop research objectives;

 Determine the participants profile;
 Determine the appropriate compensation/token for the participants;
 Develop participants; screener questionnaire;
 Recruit the participants;

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  Select good facilitator;
 Develop facilitators discussion guide;  Arrange for the venue and logistics;
and  Analyze the results of the FGD.
2. Survey/Interview is the most preferred instrument for in-depth quantitative
research. The respondents are asked a variety of questions which are often about
their personal information, their motivation and their behaviour. It can be
conducted via telephone, mail or personal.
3. Observation technique is probably one of the best ways of gathering data about
customers in their natural setting without having to interact or talk to them.

Methods of Generating New Product/Services

1. Focus Group
A moderator leads a group of 8-14 participants through an open, in-depth
discussion in a directive or non-directive manner. This is an excellent method for
generating and screening ideas and concepts.it allows people to be stimulated to
greater creativity.
2. Brainstorming
Good ideas emerge when the brain storming effort focuses on a specific product
or market area.

Rules of Brain Storming:

 No criticism of ideas or suggestions. Every idea even the wildest non-feasible

idea is accepted;
 Freewheeling discussion is encouraged;
 Quantity of ideas is desired; and
 Combinations and improvements of ideas are encouraged.
3. Problem Inventory Analysis
Consumers are provided with a list of problems and are asked to identify products
that have those problems. Results must be carefully evaluated as they may not
actually reflect a new business opportunity.

Sources of New Product/Services

1. Consumer
Monitor potential ideas and needs from customers and formally arrange for
consumers to express their opinions.
2. Existing Products and Services

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 Analysis of Products and services uncovers ways to improve offerings that may
result in a new product or service.
3. Distribution Channels
Channel members can help suggest and market new products.
4. Government (patent office)
Files of the Patent Office can suggest new product possibilities.

5. Research and Development

Conduct research on your market and your customers’ needs. This results to the
development and identification of new and improved product and services.

Generating New Product/Services for Conventional or Innovative Businesses

Conventional ides can be taken from tried and tested business models like
opening up a snack bar in competition with almost 100 others in a particular city. For
innovative businesses, however, a product can be introduced that is not yet known to
the market. Needless to say, it is where experimentation and boldness in business come
in.

1. Conventional business scenario

a. Start a business that you are familiar with;
b. Start a business due to the needs of existing business contacts;
c. Gain business inspiration from your hobby or interest;
d. Gain inspiration from imported items; and
e. Explore the possibility of import business.
2. Innovative business scenario
a. Gain inspiration from the needs and wants of the costumers;
b. Gain an inspiration from the problems and issues that bothered you and your
peers;
c. Study the usual or existing solutions and venture in the alternative solution;
and
d. List down existing products and find out their other uses from what was
stated.

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 Explore

II. Direction: Classify whether the given scenario is for conventional business or
innovative business. Write C if it is for conventional business and I if it is for innovative
business.

1. Start a business due to the needs of existing business contacts.

2. Study the usual or existing solutions and venture in the alternative solution.

3. Gain business inspiration from your hobby or interest.

4. Explore the possibility of import business.

5. Gain inspiration from the needs and wants of the costumers.

III. Direction: Identify the product or service which you would want to introduce and
classify whether this product or service is a conventional or and innovative business.

___________________________________________________________________________________

___________________________________________________________________________________
___________________________________________________________________________________

___________________________________________________________________________________
___________________________________________________________________________________

___________________________________________________________________________________

_________________________________________________________________________________
__
_________________________________________________________________________________
__
___________________________________________________________________________________
___________________________________________________________________________________
___________________________________________________________________________________
___________________________________________________________________________________
___________________________________________________________________________________

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 Explore

Survey of Market Size and Value

A different set of questions is needed when assessing the size of the market for a
particular type product and the value of the market (the amount of money spent on that
product or service type each month or year). At the same time it is possible to gather
information about the types of people who buy a particular product or service and where
we can avail them.

The information gathered from potential consumers can be analysed by the

entrepreneur to get a good idea of the quality characteristics of the product/service that
consumers prefer, the total demand for the product and the total value of the market.

This involves making a number of assumptions and it is important to consider the

following:

 are the people interviewed really representative of all potential;

 was the number of people interviewed enough? and  were
people giving accurate information?

Below is a sample questionnaire about market size and value:

Questions Answers
About the market size:
1. How often do you buy this product? o Daily o
Weekly o
Monthly
2. Do you buy different amounts at different o Yes o
times of the year? No
3. When are the times that you buy them Specify:____
most?
4. How much do you buy each time? ___ pc
5. When are the times you buy the least?
6. How much do you buy each? ___ pc
7. what is the amount of food in the pack? ___ Php/___pc
About the market value:
8. How much do you pay for a pack of food? ____ Php
9. What is the price difference for larger or ____ Php
smaller pack?

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10. Does the price change at different times of o Yes o
the year? No
11. When is the price highest? ____ Php

About the costumers:

12. Would you say that you have a low, o Low o Medium
medium or high income? o High

13. To which group do you belong? o 1-20 o

21-40 o
41-60 
Male
 Female
About sales outlet:
14. Where do you usually buy this food? o Food store o
Local shop o
Kiosk o
Supermarket

Enrichment Activity 1:

Direction: Make/Prepare a survey questionnaires about market size and value for the
product which you would like to sell.

Criteria 4(Proficient) 3(Advanced) 2(Fair) 1(Poor)

Questions are Questions Questions Questions

perfectly made, match the fairly match fairly match
match the various aspects the various the various
various aspects of the topic of aspects of the aspects of the
of the topic of the survey. topic of the topic of the
the survey. survey. survey.

Criteria for Scoring the prepared survey questionnaire

Market share and competition

Market surveys and calculation of market size and value are important to find
out whether the demand for a product really exists.

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 It is therefore important from the outset, to estimate the proportion of the total
market that a new business could reasonably expect to have. This is referred to as
market share.

It is often difficult to estimate a realistic market share. The figure depends on a

large number of variables.
In many cases, new entrepreneurs over-estimate the share that they could expect,
with the results that production operates at only a small proportion of the planned
capacity.

This figure should not be assumed to represent the scale of production that could
be expected. Even if no one else is currently making a product locally.it is likely that
once a new business starts production and is seen by others to be successful, they too
will start up in competition.

Example:

Estimates of market share for a new food business with different levels of competition
No. of other
Many Few One
producers
Size of None
Large Small Large Small Large Small
competitors
Product Range S D S D S D S D S D S D
Market share 0- 0- 5- 10- 0- 5- 10- 20- 0- 10- 30- 40- 100
(%) 2.5 5 10 15 2.5 10 15 30 5 15 50 70
S=similar products D=dissimilar product

Enrichment Activity 2:

Direction: On a separate sheet of paper, follow the format presented below to prepare
an estimate share for the product you want to introduce.

No. of
other Many Few One
producers
Size of None
Large Small Large Small Large Small
competitors
Product
S D S D S D S D S D S D
Range
Market
share (%)
S=similar product D=dissimilar product

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Competitors

Competitors are very important 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

They also compete with the profit margin and level of service that they offer to the
retailers and with special offers or incentives to costumers.

New entrepreneurs must therefore assess each of these factors using a Strength,
Weakness, Opportunities and Threats (SWOT)analysis.

Example of a SWOT Analysis of a New Business in Relation to Competitors

My proposed
Competitor A Competitor B
business
Strengths Production likely to Good brand image Product is cheaper
be sited close to and range of than A and sells
retailers that can products well. They offer
deliver at short good margin
notice retailers.
Weaknesses Difficult to Products are more Poor quality
find good expensive than B. product, poor label
packaging Uses synthetic designs. I’m told by
colours and my retailers that
preservatives supplies are
irregular and not
always the amount
ordered.
Opportunities Retailers may Strong Promotion Appears to be
demand for expanding
products without deliveries to new
additives is areas according to
increasing. I can newspaper reports
produce without
added colors.
Threats There are few Cheaper products May have
wealthy consumers that B. overexpanded
and price is most distribution
important factor network and failing
to make deliveries.

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(adapted from: Starting a Small Food Processing Enterprise, by Fellows, Franco and
Rios)

Enrichment Activity 3:

Direction: Prepare a SWOT analysis of the product you want to introduce in the
market, follow the format given below(Use a separate sheet of paper).

My Proposed
Competitor A Competitor B
Business
STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

Rubric for Scoring

4 3 2 1

A thorough SWOT A SWOT analysis A SWOT analysis A SWOT analysis

analysis was was performed. All was performed. was performed but
performed. All four four areas were Some of the four none among the
areas were addressed. areas were not four areas was not
addressed addressed. addressed.
thoroughly and
with great details to
specific in a visually
appealing way.

15
 Deepen
Activity 1:

Direction: Satisfy the demand of the following. Use a separate sheet of paper for this.
1. What do you mean by determining who your customers are in terms of:

A. target market?

B. customers’ requirements?

C. market size and value?

2. Validate customer-related concerns through observation, focused group

discussion or survey/interview.

Gauge

I. Direction: On your answer sheet, write T if the statement is correct and F if

otherwise.

1. It is better to do market survey because it will make the entrepreneur properly

understand the needs of the customers and how they operate the business.
2. Focus group as a method of generating new products/services, good ideas
emerge and effort focuses on a specific product or market area.
3. Market surveys and calculations of market size and value are important to find
out whether the demand for a product really exists.
4. Competitors are not so important to the success and failure of a new business.
5. For innovative businesses, a product that can be introduced is not yet known in
the market.

II. Direction: Answer the following question briefly.

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 Why is market analysis/research being done?

Rubric for Scoring

Features 4 3 2 1
(Expert) (Accomplished) (Capable) (Beginner)
Quality of Answer was Answer was Answer had a Answer had no
Writing written in an written in an little style or style or voice,
extraordinary interesting style voice, gives gives no new
style, very and voice, some new information
informative somewhat information and very poorly
informative and but poorly organized
and well
organized organized organized

Grammar, Virtually no Few spelling A number of So many

Usage and spelling, and spelling, spelling,
Mechanics punctuation or punctuation punctuation punctuation
grammatical error, minor and and
error grammatical grammatical grammatical
errors errors errors that
interfere with
the thought of
the answer.

RUBRIC for Scoring an Informal Essay http://www.google.search.com Key Answers

JUMPSTART

Activity 1 :

A.

B.

Discover

Activity 1:

I.
II.
Explore

Enrichment Activity 1:

Enrichment Activity 2: Answers vary

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Enrichment Activity 3:

Deepen

Activity 1: Refer to the scoring rubric under Target

Gauge

I.

II. 11.T 12.T 13.T 14.F 15.T

Scoring Rubrics
Features 4 3 2 1
(Expert) (Accomplished) (Capable) (Beginner)
Quality of Answer was Answer was Answer had a Answer had no
Writing written in an written in an little style or style or voice,
extraordinary interesting style voice, gives gives no new
style, very and voice, some new information
informative somewhat information and very poorly
informative and but poorly organized
and well
organized organized organized

Grammar, Virtually no Few spelling A number of So many

Usage and spelling, and spelling, spelling,
Mechanics punctuation or punctuation punctuation punctuation
grammatical error, minor and and
error grammatical grammatical grammatical
errors errors errors that
interfere with
the thought of
the answer.

18
RUBRIC for Scoring an Informal Essay http://www.google.search.com
Criteria 4(Proficient) 3(Advanced) 2(Fair) 1(Poor)

Questions are Questions Questions Questions

perfectly made, match the fairly match fairly match
match the various aspects the various the various
various aspects of the topic of aspects of the aspects of the
of the topic of the survey. topic of the topic of the
the survey. survey. survey.

Criteria for Scoring the prepared survey questionnaire

http://www.google.search.com

4 3 2 1

A thorough SWOT A SWOT analysis A SWOT analysis A SWOT analysis

analysis was was performed. All was performed. was performed but
performed. All four four areas were Some of the four none among the
areas were addressed. areas were not four areas was not
addressed addressed. addressed.
thoroughly and
with great details to
specific in a visually
appealing way.

Rubric for Scoring a Prepared SWOT analysis http://www.google.search.com

REFERENCES:

Printed Materials:

De Guzman, Angeles A, (2018).Entrepreneurship for SHS. Quezon City, Philippines:

Lorimar Publishing ,Inc.

Morato, Eduardo A, (2016).Entrepreneurship. Manila, Philippines :Rex Publishing, Inc.

Website http://www.google.search.com

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