5-6)

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LESSON 1: The Right Product for the Right Market
LC: Select the best product or service that will meet the market need. (TLE_ICTAN11/12PC-
Ia-1)

Activity 1. Direction. Arrange the jumbled letters below to

form a word. Write your answer on your paper/answer sheet.

1. DROPUTC _________________
2. RTMEKA _________________
3. PLEETNANUREIRE DIMN _________________
4. ISERCEV _________________
5. MOCRENSU _________________

NEW PRODUCT DEVELOPMENT

Successful new products spring from the convergence of

(1.) the creative mind; (2) the technical mind; and (3) the business
mind. All three minds come together in the entrepreneurial mind.
In reality, however, the three minds are seldom found in
one entrepreneur. However, the entrepreneur is certainly the
orchestrator of the three minds.

3 KINDS OF ENTREPRENEURIAL MIND

THE ENTREPRENEURIAL MIND

1. CREATIVE MIND

2. TECHNICAL MIND

refers to a specific state of mind which

orientates human conduct towards
entrepreneurial activities and outcomes.
Individuals with entrepreneurial mindsets are
3. BUSINES MIND
often drawn to opportunities, innovation and
new value creation.

CREATIVE MIND

-conceptualizes and designs a product that

consumers find some use

-pleasing to see, touch, smell, hear, and taste

-creates emotional attachment and becomes

personal expression of the consumer

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 TECHNICAL MIND

-technology originator. The

entrepreneur may not necessarily
possess the technical mind but this is
what drives him or her to convert new
knowledge into something highly BUSINESS MIND
functional and operational

-technology adaptor. He or she uses

old knowledge for new applications in
various fields of human endeavor.
-technology renderer. He or she
resolves to make a new product work
for the product creator by configuring
and
For reconfiguring the technical
a better appreciation, design
let us give
of the new product.
an example of how the creative
mind, the technical mind, & the
business mind are used in
developing a new product.
Case Example: The Lampturn
-harnesses the potentials of new
products by creating the market
space for them.
-It also organizes sufficient
forces and resources to develop,
launch, and commercialize the
new product in order to
maximize its market value.
-manages the external and
internal business environment
of the new product, which goes
beyond the product development
process itself.

Two MBA students embarked on their venture thesis. They were Ronald Pingol and
Cristina Pastrana. They developed a new product called Lampturn.

Essentially, this new product was a desk lantern that reflected colorful and moving
images onto the lantern screen. The product was positioned as a novelty night lamp for
children’s bedrooms or a mood lamp for living rooms. The images were illuminated on the
lampscreen by an electric bulb of small-wattage. As the lamp was lit, the heat of the lamp
caused the lamp to turn. While the screen revolved around the four sides of the rectangular
lamp, an illusion of changing shapes and sizes was created while the images moved from
one end of the screen to another.

The creative minds of Pingol and Pastrana were activated as they searched for a
novelty product for their venture thesis. They were intrigued by the reflector/projector
lanterns in three movies: The Little Mermaid, Up Close and Personal, and Eye for an Eye.

Their technical minds were challenged. They had no technological backgrounds.

They did not possess the skills to fashion such lamps. They had to figure out how to make
the lamps turn, how to make their screens and how to make the images mesmerizing for
children and adults alike.

Their business minds were also put to the test. Who would be their best target
market? How would they market the lamp? Who could make the lamp for them once they
developed the prototype? How could they raise the funds for the project? Could they produce
the lamp at a cost that would generate profits for them?

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Product Conceptualization and the Creative Mind

Example: LAMPTURN

- To create mood and ambiance

- To delight and fascinate viewers
- To serve as a center piece for rooms with its theatrical display of images

Sensorial- Emotional Appeal Aesthetic Appeal

 Use of light amidst  How the lamp could be elevated to self-

darkness actualization would largely depend on
 Highly colorful and moving the meaning of the lamp images.
shapes  It would also depend on the desired
 Images and the mood state of the self, which the lamp should
evoking scenery produce.

Product Development and the Technical Mind

In order, to convert the product concept into a viable product, the technical mind must
intervene to provide the quality and performance specifications through technology.

In the case of Lampturn, the product simply required the application of existing
technology (or technology rendering).

The entrepreneurs needed to do was to fit that existing technology according to their
product concept. This is the point where the entrepreneurs encountered several challenges while
they were searching for the appropriate technology for their product concept.

TECHNICAL CONSIDERATIONS:

First:
- Use of 25-watt bulbs.
- Use of fan-bladed domes.
- Use of BIC ball pens to
support & allow the dome to
rotate smoothly.
- Use of natural sanded wood.
- Use of fish & butterfly
designs.
Second
- Use of high-impact plastic
The entrepreneurs had to tap
paper the technical minds of electricians,
- Use of strong wooden frames engineers, artisans, and artists to
Third
develop the Lampturn. Prototypes
- Use of size that is not more
than 16 inches in height & were fashioned, critiqued, and
10 inches wide. discarded until the entrepreneurs
- Use of quality electrical became satisfied with a final
supplies
prototype.

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 Product Launch and the Business Mind

The Business Mind brings the As the entrepreneurs

product from the prototype stage to the
production phase, and finally, to its
ultimate destination, the market place.
The product must be made shop-ready
for commercial purposes.
The Business Mind must
determine the best way to maximize
product sales to its target market. The
right distribution and salespeople should
be tapped and deployed.
The first FGD consisted of potential
consumers with ages ranging from 15-50.
approved the final prototype, the
next step was to test market the
product prototype.
The test was conducted in
two phases. The first phase
consisted of two focus group
dimensions (FGD) and selling
activities at Christmas bazaars.
The second phase involved the
placement and selling of the
lantern at alternative outlets to
determine their price.

 The fish design was particularly liked.

Other designs like planets, angels and
Christmas motif were recommended.
 The FGD suggested a price range of
P500.00 to P1, 200.oo.
 The product could be used as a home
décor for their own homes or as gifts to
friends.
 The FGD raised the issue of safety and
recommended that instructions be given
on how to handle the electrical. The second FGD consisted of interior designers
for product enhancement purposes.

 The designers recommended that the

lantern be sold in home décor stores
In pre-Christmas bazaar sales, the
rather than novelty shops to get a price
entrepreneurs wanted to:
 See hoe the product would move in premium.
the market place;  They suggested additional designs like
 Who would buy it and for what carousels and flowers.
purpose;  They saw the lantern as a living room or
 At what price range; and bedroom lighting display that must have
a fireproof certification.
 With what customers comments.
 They thought that the lamp should be
In the five bazaars; packaged in a strong box to protect it
from breaking.
-twenty-six lamps were sold
-eight percent of the buyers were
women, ranging from teenagers to
young and older mothers.
-the introductory price of P800.00 was
readily accepted
-fifty percent of the lanterns were
intended as gifts.

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The second test marketing phase attempted to place the product in several
commercial outlets, namely in;
 Home décor and home furnishing stores;
 Novelty and gift stores;
 Lamp and lighting fixture stores; and
 Children’s toy stores
Because of their test marketing experience,
the entrepreneurs positioned the product:
 As a novelty home décor item;
 For children’s bedroom for living room
display
 For women buyers aged 15 to 50

THE FINDINGS OF THE SECOND TEST

MARKETING PHASE ENABLED THE
ENTREPRENEURS TO MAKE A GOOD
MARKETING PLAN THAT WOULD
MAXIMIZE THEIR REVENUES AND
PROFITS.

CREATIVE MINDS activated due to the products novelty. Intrigued by the

reflector/projector.

TECHNICAL MIND was challenged due to products’ fashion. This challenged

costumers to figure out how to make lamps turn, how to make their screens and how
to make the images mesmerizing.

BUSINESS MIND were test. Who would be the best target of the market? How would
they market the lamp? Could they produce the lamp at a cost that would generate
profits?

The New Improved Product

There are many existing

products in the market that are serving the
needs and wants of customers but not that
well. The existing products are being
tolerated because there are enough
features and attributes to make the
customers want to buy the product.
However, there are enough “dissatisfiers”
in the product to warrant the introduction of new, improved versions,
or modifications of the product such as as in the case of the Crunchy Bawang.

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Case Example: Crunchy Bawang- the case of New Improved Product

Two entrepreneurs, Geraldine Domingo and Carla Ortega wanted to improve an existing
product, that is, the fried garlic in oil (FGO) otherwise known as “Crunchy Bawang”. The product
was commanding a higher price of P180 per bottle although they thought it could be substantially
upgraded.

The two entrepreneurs bought several bottles of the existing FGO and decided to conduct
taste tests and interviews at a school cafeteria of graduate students to determine the positive and
negative attributes and features of the product. One hundred respondents were chosen during
lunchtime. The respondents liked the peculiar garlic taste (67%), its crunchiness and texture
(92%), and the bottled convenience it offered (56%). What they disliked about the product was its
relatively bland taste (74%) compared to fresh products, its oiliness (71%), and its food safety
aspects (38%) because there was no expiration date, no manufacturer’s name, its poor packaging,
and no details on the ingredients. Eighty nine percent said they would buy the product while 11%
said no. The preferred prices were between P76.00 and P100.00 (74%), P100.00 to P125.00 (11%),
P125.00 to P150.00 (8%), P50.00 to P15 (5%) and P151.00 to P175.00 (2%).

In terms of usage, the entrepreneurs discovered that 33% used the FGO as rice toppings
while 67% placed it on their plates beside the viand. The entrepreneurs also interviewed the buyers
of the existing FGO by waiting for them near the store selling the FGO. They found out that the
buyers regularly bought the FGO to enhance the taste of their cooked food. The buyers also did
not like the oiliness of the FGO and its high price, although the convenience seemed to make up
for the price.

The two processes allowed the entrepreneurs to conclude that: (2.) the product could be improved
by lessening the oil, enhancing the taste, coming up with a better package; and (3.) customers
could buy a bigger volume if the prices were lower.

From the taste test and interviews of FGO buyers, the entrepreneurs plunged into the
product development stage. This consisted of three parts: (1.) preliminary testing; (2.)
establishment of specifications for the product; and (3) standardization of the production process.

Activity 2: How are you as an OC (Observer/Critic) of a new

product? Write your answer on your paper/answer sheet.

1. Get to know about the latest cellphones in the market. What is the role of the creative mind in
coming up with that product? Focus on the design of the product, what is the utilitarian-
purposive appeal of that product? Next, examine and discover the sensorial-emotional appeal of
the product. Do you like to sell it, touch it, hear it, hold it? What is emotionally captivating about
the product? Lastly, how beautiful is the product? Does it make you want to own it? If you were
able to buy the product, would it make you feel more important and accomplished?

2. At the next level of analysis, evaluate the role of the technical mind in coming out with that
cellphone. Is there new technology in the Product? Is it highly functional and operational for
users? To what extent did the technical mind use old knowledge for new application in this
particular cellphone? Is the technical design of this cellphone rendered in a superior way? How
does the present product improve upon the old? Is the improvement worth it?

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3. Finally focus on the business model. Were the makers of the cellphone able to create a lot of
market space for new product? Did they launch, advertise, and promote the product very well? Did
they address the market needs very well? Did they use their own competitive advantages to come
up with the new product? Does the product have great appeal? Is the product acceptable
in price? Is the product using great marketing channels?
Rubrics
Criteria 3 2 1
Ideas Interesting and relevant information Broad topic with general information. No specific idea about a theme
on a specific topic
Organization Organization is logical and assist in Ideas are loosely organized. No clear order to the content
communicating the ideas. Sequencing, connections, transitions
are not always apparent
Voice The writer captures the reader’s The writer has some interest in the The writer does not seem
attention. The topic obviously interest topic; but does not try to arouse the interested in the content.
the writer reader’s interest.
Conventions Spelling, punctuation, and grammar Spelling, punctuation and grammar Multiple errors distract the
are excellent are generally correct. A few revisions readers.
are needed
Presentation It is neat with a professional and It is readable. Some attempts at The final product has a sloppy
artistic appearance using visuals or font changes are appearance
apparent

Activity 3. The Product (or Service) and You. Read the

questions carefully. Please answer comprehensively.

1. Using your creative mind, conceptualize a new product or service. What is the purpose or use of
your product or service? Does your product concept appeal to the senses and emotions? Does your
product or service have aesthetic appeal? Will it elevate its intended consumers to a new level of
self-actualization?

2. Using your technical mind, how do you intend to convert this product or service concept into
something concrete and real? What technologies and technicalities must you learn? What would
be the quality specifications demanded of your product or service? Are the specifications difficult
to attain? What would it take to attain them? Given the quality specifications demanded by the
intended consumers of your product or service, what are the corresponding technical specifications
that you need to attain? Do you need to seek the guidance of experts in the field? Is it possible for
you to come up with a prototype of the product or service for testing?

3.Finally, how do you intend to make money out of selling this product or service? Who is
your target market? What are your projected sales, costs, and expenses? What kind of
people do you need to help you land this business?

4. After testing the product or the service, what improvements should you make on the
product or service? Are the difficulties you met surmountable? What help do you need to
fully exploit the market and financial potentials of this product or service?

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 MULTIPLE CHOICE: Direction. Select the letter of
your choice. Please write your answer on your
answer sheet

1. The following minds come together to spring a successful new product,

EXCEPT:
A. creative mind B. technical mind C. business mind D.none of these
2. In reality, the three minds are seldom found in one entrepreneur. However,
the consumer is certainly the orchestrator of the three minds.
A. The first statement is correct while the second statement is incorrect.
B. The first statement is incorrect while the second statement is correct.
C. Both statements are correct.
D. Both statements are incorrect.
3. This harnesses the potential of new products by creating the market space
for them.
A. creative mind B. technical mind C. business mind D. mindset
4. The following statements are true about technical mind, EXCEPT:
A. The entrepreneur must possess the technical mind.
B. The technical mind is the technology originator.
C. The technical mind is a technology adaptor.
D. The technical mind is a technology renderer.

5. The creative mind conceptualizes and designs product that consumers find
some use for. It likewise produces a product that is pleasing to see, touch,
smell, hear, and taste.
A. The first statement is correct while the second statement is incorrect.
B. The first statement is incorrect while the second statement is correct.
C. Both statements are correct.
D. Both statements are incorrect

DISCLAIMER
This Learning Activity Sheet (LAS) was developed by the Senior High School
teachers and passed the Quality Assurance processes of the Schools Division Office of
Biliran with the paramount objective of preparing and addressing the new normal. The
contents of the LAS were based on the Department of Education’s Most Essential
Learning Competencies (MELC) and SDO-Biliran’s Budget of Lessons (BOL). The
borrowed materials (i.e., stories, articles, photos, brand names, trademarks, etc.)
included in this LAS are owned by the respective copyright holders. This is a
supplementary material to be used by all Senior High School learners (Grade 11 and 12)
of SDO-Biliran.
Activity 1:
Republic Act 8293, Section 176 states that: No copyright shall subsist in 1. PRODUCT
any work of the Government of the Philippines. However, prior approval of the 2. MARKET
Government agency or office wherein the work is created shall be necessary for
exploitation of such work for profit. Such agency or office may, among other things, 3. ENTREPRENEURIAL MIND
impose as a condition the payment of royalties. 4. SERVICE
Thus, the teachers who wrote, created, compiled, and collected the
information herein do not represent nor claim ownership over them. We highly 5. CONSUMER
encourage comments, feedbacks, suggestions and recommendations.
Activity 2: Answers may vary
JULIE ANNE E. EDICTO & MARA C. RODRIGO
Writer-KNHS- SY 2020-2021
Activity 3: Answers may vary
VICENTE G. MONTERROYO-MT2
Evaluator (Core and Applied-ACAD/HUMSS/TVL)
KNHS 8