Analyze the

Market Need
Week 3
Specific Objectives:
1. Define entrepreneurial process
2. Identify the steps in entrepreneurial process
3. Explain how an entrepreneur can identify business opportunities
 The Entrepreneurial Process

It is a step-by-step procedure in establishing any

kind of business that an entrepreneur must undergo.
1. Opportunity Spotting and Assessment

This is the beginning of the process and is considered the most

difficult. Entrepreneurs at this point take note of interesting
trends in their environment.

Examples:
Eco-Friendly products
Eco-friendly products
1. Opportunity Spotting and Assessment

Consumers are reliable sources of opportunity information

because market needs originate from them.

Examples:
Food Cart business
Food Cart business
1. Opportunity Spotting and Assessment

Entrepreneurs should already think in advance how they will

position the product or service in the market and showcase its
unique selling proposition.

Examples:
Unique selling points
2. Developing a Business Plan
- Entrepreneurs should formulate a business plan when they have
already spotted and assessed the opportunities for a market.
- A business plan is a comprehensive paper that details the
marketing, operational, human resource, financial, strategic
direction, and tactics of the business. The business plan will be the
core guide and direction of the entrepreneur in calculating the
resources needed, assessing how to obtain these resources
effectively, and running the business sustainably.
3. Determining the capital needed
- It is mandatory in the entrepreneurial process to
calculate the resources needed to establish the
business and compare this against the
entrepreneur’s current resources.
- Allowance must be considered as well because
there will be times that resources will be
inadequate or unsuitable.
4. Running the Business
- This is the part where the entrepreneur uses the
resources allocated for the new venture.
- All aspects of the business plan should be
critically observed from operations, marketing and
sales, human resources, finance, and strategy
implementation.
3s of Opportunity spotting and
Assessment
Opportunity – It is an entrepreneur’s
business idea that can potentially
become a commercial product or
service in the future.
S1: Seeking the Opportunity

It is the first step and is the most difficult of all due

to the number of options that the entrepreneur will
have to choose from. It involves the development
of new ideas from various sources.
Micro-market
1. Customer preferences,
interests, and perception.
2. Competitors
3. Unexpected opportunities
from customers.
4. Talents, hobbies, skills, and
expertise.
5. Irritants in the marketplace
such as deterrents or
discouragements because of
the price, problems,
complaints, and delays.
6. Location
Macro-environmental
1. STEEPLED. This is a mnemonic
for sociocultural, technological,
economic, environmental, political,
legal, ethical, and demographic
factors. This represents the general
environment where an entrepreneur
identifies business opportunities
from and where the future business is
about to operate.
2. Industry. This is the source of
current trend on what is happening in
the industry where the future business
will belong to.
3. New Discovery of Knowledge. These
are new trends that can be the core
business of a new venture.
4. Futuristic Opportunities. These are
future business ideas that are like
portraits entrepreneurs paint in their
mind and set out to create.
S2: Screening the Opportunity

It is the process of cautiously selecting the best

opportunity. The selection will depend on the
entrepreneur’s internal and external intent.
S3: Seizing the Opportunity

It is the last step in opportunity spotting and

assessment. This is the “pushing through” with the
chosen opportunity.
 Identifying Customer Needs
Identifying customer needs is mission-critical for businesses
looking to create a product that truly speaks to their
customers’ problems.
Customer needs are the named and unnamed needs your
customer has when they encounter your business, your
competitors, or when they search for the solutions, you
provide.
However, identifying the needs of your customers is easier
said than done. There are a couple easy ways to gain insight
into what your customers really need from you.
Methods to Identify Customer
Needs
1. Focus Groups - A focus group is a
marketing research tool in which a
small group of people (typically eight
to ten individuals) engages in a
roundtable discussion of selected topics
of interest in an informal setting. The
focus group discussion is typically
directed by a moderator who guides the
discussion to obtain the group's
opinions about or reactions to specific
products.
2. Social Listening - Social listening
gives brand an opportunity to track,
analyze, and respond to conversations
through brand improvement and
development. It’s a crucial component
of audience research. Start to ask
around, hear other opinions about your
business. You start to listen and based
on what you hear you start to make
changes that people like.
3. Customer Needs Analysis Survey -
The customer needs analysis is
typically conducted by running surveys
that help companies figure out their
position in their respective competitive
markets how they stack up in terms of
meeting their target customers' needs.
The survey should primarily ask
questions about your brand and
competitors, as well as customers'
product awareness and brand attitudes
in general.
4. Means-End Analysis - Once you've
conducted the customer needs analysis
survey, you can use the answers to get a
fuller picture of the reasons why your
customers purchase from you, and what
makes your product or service stand apart
from your competitors'. A means-end
analysis analyzes those answers to
determine the primary reasons why a
customer would buy your product. Those
buyer reasons can be divided into three
main groups:
● Features: A customer buys a product or service
because of the features included in the purchase. If the
customer were buying a laptop, for example, they might
buy it from you because it's smaller and lighter in weight
than other options.
● Benefits: A customer buys a product or service
because of a benefit, real or perceived, they believe it will
offer them. The customer might also buy the laptop
because it syncs easily with their other devices wirelessly
and can be used while travelling.
● Values: A customer buys a product or service for
unique, individual values, real or perceived, they believe
it will help them fulfill. The customer might think the
laptop will help them to be more creative or artistic and
unlock other personal or professional artistic
opportunities.