HOW TO RECOGNIZE

A POTENTIAL
MARKET
LESSON 3
 SUB-TOPIC AREAS
● Sources of opportunities
● Sources of innovative ideas
● Opportunity Analysis
● SWOT analysis
 OBJECTIVES
a. determine the possible products or services
that will meet the need of the market.

b. propose solutions in terms of products and

services that will be meet the need using techniques
on seeking, screening, and seizing opportunities.
What are the characteristics
of an entrepreneur?
What are the possible job
opportunities for
entrepreneurs?
 SOURCES OF
OPPORTUNITIES
Trends - these are indicators in
the shift of paradigm (or
thinking) of a certain population.
A. Trends in the society - aging
demographics, health and fitness,
lifestyles of young professionals,
interests of adolescents.
B. Trends in technology
- mobile technology and e-
commerce etc.
C. Economic trends - higher
disposable income, dual wage
earners, more employed workforce,
more student populations, rise in
foreign exchange needs.
D. Government trends -
petroleum prices, regulations,
election season, threat of
terrorism.
Unexpected occurrences -
these could be either be success
or failures that were not
anticipated like the 911 terrorist
attack, Yolanda typhoon,
earthquakes and fires.
Incongruities - these occur
when a gap of difference
exists between reality and
what is expected.
Process needs - creation of
new medical devices, health
foods, sports drinks, caffeine
free drinks, sugar free drinks
and time saving devices.
Demographic changes - these
occur when changes in age,
population, education,
occupation, geographic locations
and other factors happen.
Perceptual changes - these
occur when people's view on
facts and concepts changes.
Knowledge based concepts -
these are the basis for creating
something brand new such as
innovations and new technologies
that were non-existent before.
 SOURCES OF
INNOVATIVE IDEAS
(According to incremental
innovation)
Customers - they are the most
fruitful source for ideas.

Competitors - businesses can

often use these ideas and
append or modify them to
create new products
Internal departments - employees are
often the most well-informed idea source
and can provide detailed, structured
proposals for new products and services
Industry and market structure change the
convergence of multiple technologies and
structural problems that occur from time
to time.
Changes in perception, meaning,
and mood - the way people view life
changes, where they take their
meaning from, and how they feel
about things also is modified over
time and smart companies must pay
attention to this in order to capitalize.
New knowledge - finding
better ways of doing things
and improving processes
OPPORTUNITY
ANALYSIS
A. ENVIRONMENTAL SCANNING
- a process that systematically surveys
and interprets relevant data to identify
external opportunities and threats
 WAYS OF SCANNING THE ENVIRONMENT
1. Looking closely at the market
● Demand and supply gap
● Import-export movement
● Product substitution
● Forward-backward industry linkages
2. Looking at people's skills
● Observe your community
3. Looking at available business assistance program
● Visit DTI
● Government and private institution
● Non-government organization
B. ENVIRONMENTAL ANALYSIS
- is a process to identify all the
external and internal elements,
which can affect the organization's
performance.
C. PRODUCT SELECTION
- A product is anything that can
be offered to a market for
acquisition, use or consumption
 FACTORS TO CONSIDER IN PRODUCT
SELECTION
1. Supply-gap
2. Fund
3. Technical implications
4. Profitability/marketability
5. Availability of qualified personnel
6. Government policies
7. Government objectives
SWOT ANALYSIS
● a very common and a very
useful strategic planning
tool.

● will tell you what you are

doing well, places to tweak,
areas of future growth, and
problems you need to
confront.
 STRENGTHS
● Do you offer best incentives to customers?
● Are your products unique / market leading?
● Do you have sufficient sales materials /
resources?
● Do you have access to superior market intel?
● Do you have good personal relations with your
customers?
● Which are the accounts where you are dominant?
OPPORTUNITIES
● Are there high growth potential customers in your
territory?
● Is there room to enhance your sales mix?
● Are any of your customers willing or planning to
expand their operation?
● Is there high untapped potential in the territory
WEAKNESSES
● Is the customers incentive scheme lower than
competition?
● Poor sales tools prevent showing value of offering
● Are your products more expensive than
competition?
● Weak personal relations and trust issues with key
customers
● Where does your product / service lack in quality
or benefits?
THREATS
● More aggressive competition
● Decreasing usage of end-user consumption
● Customers in my territory going out of business
● New competitive customer incentives from
competition