Module NO: 2

2nd Quarter
Recognizing the Potential Market
Learning Objectives:
At the end of this module the learner shall be able to...
 Identify the market problem to be solved or the market to be met.
 Propose solution in terms of products and services that will meet the
need using techniques.
On seeking, screening, and seizing opportunities.
a. Analyze the market need.
b. Determine the possible products or services that will meet the need.
c. Screen the proposed solutions based on viability, profitability, and customers’
requirements.
d. Select the best products or service that will meet the market needs.

The Entrepreneurial process

It is composed of four aspects.
1. Opportunity spotting and assessment. This is the beginning of the process and is
considered the most difficult. Customers are reliable sources of opportunity
information because marker need originate from them. Other major sources of
opportunity are the glaring problems in the environment, problems encounter by co-
entrepreneurs, new trends process, and development in the environment. Other minor
sources are feedback from distribution of business partners such as retailers,
wholesalers, manufacturers, and technical people that the entrepreneur is working
with. The entrepreneur’s toughest job is to carefully assess the opportunity through
estimation of opportunity length, capitalization required, treats, profitability, and
calculation of real and perceived value. Entrepreneurs should also assess if the
opportunity is aligned with their personal goal and attributes. Last, entrepreneurs
should already think in advance how they will position the product or service in the
market and showcase its unique selling proposition. This module will focus mainly on
opportunity spotting and assessment, which represent the entrepreneur’s stimulus in
starting a new venture.
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 of the entrepreneur in calculating the
resources needed, assessing how to obtain these resources efficiently, and running the
business sustainably.
3. Determining the capital needs. A big idea can never be translated into reality if
the entrepreneur’s resources are limited. Therefore, 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. Caution must be
applied in computing the complete set of resources needed and include only those
items that are considered as the real needs in venture creation. 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 should use the
resources allocated for the new venture. The business plan prepared in step 2 should
already have been implemented. All aspects of the business plan should be critically
observed from operations, marketing and sales, human resources, finances, and
strategy implementation. The entrepreneur should have control and monitoring
system to serve as a check and balance of the formulated plans.

Table 2.1 Components and steps in the entrepreneurial process

Opportunity Developing a Determining Running the Business

Spotting and Business Plan the Capital
Assessment Need
Evaluate the Come up with a Calculate the Practice leadership as a
identified business intrinsic and way of life
opportunity description and extrinsic
analysis capital
needed

Conceptualize Perform industry Calculate the Recognize critical success

and measure the analysis existing factors
opportunity capital

Identify the Come up with Calculate the Identify existing and

perceived value of the marketing difference foreseeable problems and
the opportunity plan between the issues
to the company needed
and the capital and
customers the existing
capital.
Choose the
most cost-
efficient
suppliers or
service
 providers

Do cost- benefit Prepare the Develop Employ risk-mitigating

analysis of the operations plan contact and controls and monitoring
opportunity including the relationship system
including risk organizational with
analysis plan suppliers and
service
providers

Match the Come up with Devise an

opportunity with the financial expansion/sustainability
the plan strategy
entrepreneur’s
skills and
objectives

Scan the Identify

strengths and strategies and
weaknesses of tactics
competitors

Perform
monitoring and
control

Scanning the Marketing Environment Scanning the marketing environment is the

starting point of any new venture that involves understanding and knowing the
intricacies of the macroenvironment, microenvironment, and internal environment.
With this process of scanning the general environment, an entrepreneur can recognize
various opportunities and at the same time understand thoroughly the arena where
the future business will operate. The process of seeking, screening, and seizing is
adapted to create the most suited product service for an opportunity. The general rule
is to find the opportunity first before coming up with a new product service, not the
other way around. This is one of the mistakes that budding entrepreneurs commit in
starting a new venture.

Seeking, Screening, and Seizing The 3s of opportunity spotting and assessment is

the framework that most of the promising entrepreneurs use to finally come up with
the ultimate product or service suited for a specific opportunity. An opportunity is an
entrepreneur’s business idea that can be potentially become a commercial product or
service in the future. The entrepreneur serves as the catalyst of creating a value for
the customer through the new or innovated product or services. As a reward, the
entrepreneur earns profits when the costumers are satisfied and delighted.

S1. Seeking the Opportunity

Opportunity seeking is the first step and is the most difficult process of all due
to the number of options that the entrepreneur will have to choose from. It involves
the development

1. Macro Environment –refers to the macro force that affect the area, the industry,
and the market, which the enterprise belong to.
Macro Environmental Sources of Opportunities.
1. Socio-Cultural Environment –includes the demographic and culture dimension
the bigger consumer population, their belief, customs, and traditions. It looks at social
structure and shift in social status in social and behavior.
2. Political Environment-include by government policies and administration the
governance system of the country or the local area of business.
 factors It includes all the Government laws, rules and regulations that govern
business practices as well as the permit, approvals, and licenses necessary to
operate the business.
3. Economic Environment – Supply and demand forces mainly drive the macro
economic environment.
 They are same factors: Foreign exchange rates .the income levels and the
purchasing power of its people as well as the competitiveness or
competitiveness.
 Factors (e.g. Inflation rates, Interest rates, Labor cost, Unemployment, Stock
Market trends, Tax policy
4. Ecological Environment – a vital role in the scanning of marketing environment
affect any business venture.
 Factor and e.g. includes natural resources and the ecosystem, and minerals
habitat of animals, plants, and minerals.
5. Technological Environment- always be up-to-date with the technological change
improve product and services. New scientific and technological discoveries, which
often led to the launch and commercialization of new products with superior attributes
or to rendering the old ones obsolete, are the entrepreneur’s nightmares. The
entrepreneur is left or no choice but to invest in new technologies in order to keep up
with competition. Can also from of new system, new process or new product.
1. Factors e.g. (Rate of technological change, Spending on research and
development, Communication infrastructure, internet infrastructure,
rate of technology change.
6. Environmental or ecological Environment – a business suffered from weather
conditions of locality.
2. Factors and e.g. weather, climate change, air and water pollution, waste
management, endangered species.
7. Legal Environment – a government laws and regulations that can restrict or allow
business activities.
3. Factors and e.g. Anti –trust law, Consumers protection ,Employment law,
Health and safety ,
8. Ethical environment – will serve as an entrepreneurs guide on how to be ethical in
running the business. Factors are: Attitude towards development and well-being of
employees, ethical advertising and sales practice. Accepting accounting, management
and marketing standards.
9. Demographic environment – these are the characteristics of the people in the
target market.
E.g. Population growth, gender distribution, social class, Family size, Age distribution
and life expectancy rates.
A.) STEEPLED. This is a mnemonic for sociocultural, technological,
economic, environmental, political, legal, ethical, and demographic factors. This
represents the general environment where the entrepreneur can identify business
opportunities from and where the future business is about to operate. Any external
factor or combination of external factors from these eight environmental forces can
have a direct effect in opportunity generation and business sustainability. These will
be discussed further in later sections
b. Industry. This is the source of current trend on what is happening in the industry
where the future business will belong to. For example, the entrepreneur should be
fully acclimated on what is happening with the rice industry if he or she wants to
establish a rice retailing business.
c. New discovery or knowledge. These are new trends that can be the core business
model of a new venture. For example, the influx of mobile applications necessitates
businesses to have this platform as one of their transaction channels.
d. Futuristic opportunities. These are projected new opportunities that can possibly
affect the new business while it is running. For example, sari-sari stories in the future
will be able to incorporate financial transactions such as accepting bills payment and
process remittances.
2. Micro Market- refers to the specific target market segment of a particular
enterprise.
Meaning buying goods or service offered by the enterprise and its direct competitors.

a. Consumer Preference, Interests, and Perception- refers to the tastes of particular

groups of people.
These are the current needs and wants of potential customers.

The opportunity are:

1. Needs –is recognized when customer believes the difference situation versus
his or her desired condition.
2. Wants – is recognized when customers believes that there is a product or
services that can perfectly suit the need.
b. Competitors- Recognizing and understanding potential competitors will aid the
entrepreneur to develop a product or service that is unique and will surely stand out
from competition.
c. Unexpected opportunities from customer. It may happen in Situation, place,
people and unexpected opportunity.
d. Talents, hobbies, skills and expertise. Entrepreneur’s talents, hobbies, skills, or
expertise of business can be a source of business opportunity.
e. Irritants in the marketplace such as deterrents, problems, complains, and
delays.
 Entrepreneur recurring problem sometimes when there is no hope in solving
the problem.
The stand up and make a difference.
f. Location. Often entrepreneur for business opportunity right away. Location are:
school, restaurant,
An eatery, computer shop might
Be a good business to establish.

Method of Generating Ideas

Methods given can be employed by the entrepreneur in generating new idea.
1. Focus group discussion – (FGD). People who can provide insightful ideas about a
new product or service that will fill a market need.

2. Brainstorming. Similar to an FGD, brainstorming is an activity that allows the

participants to share creative ideas the ff. a.) No destructive criticism or judgments
allowed, b.) Wilder ideas are ideas are accepted, c.) More ideas are preferred. d.)
improved others ideas is allowed.

3. Brain writing or internet brainstorming .This is exactly the same as

brainstorming except that the channel used is face-to face, but in writing or online. It
takes longer, answer depend on the availability of the participant in answering the
questions online.

4. Problem inventory analysis. This method similar to FDG. Inventory of product or

services problems.
S2 Screening the Opportunity
S2 Opportunity screening –is the process of cautiously selecting the best
opportunity. Because many opportunities possible for the entrepreneur.
Internal intent- The main objective that the business will accomplish in the
entrepreneurs life.
External intent- which will address the compelling needs of the target market.
Risk appetite –refers to the entrepreneurs tolerance of business risk.
Time- must be considered by the entrepreneur in screening the opportunities at hand,
as it is consider one of the most critical resources of an entrepreneur.
S3 –Seizing the Opportunity
Opportunity seizing – Is the last step inopportunity spotting and assessment.
This is the “pushing through” with the chosen opportunity.
Innovation –Is the process of positively improving an existing product or service. It is
the key driver for economic growth.
3 Types of Innovation
1. Breakthrough innovation –These innovations, which may also include inventions,
occur infrequently as these establish the platform on which future innovations in an
area are developed (.e.g.) Innovation include the internet, the computer or the
airplane.
2. Technological innovation – These innovation occur more frequently than
breakthrough innovations.
These innovations are technological advancements of an existing product or service.
3. Ordinary innovation – these innovations occur ordinary as the name implies. They
are commonly originating from market analysis and technology pull instead of a
technology push.
 Product or service Planning Process
The five key stages are:
1. Idea stage - In this stage, the entrepreneur determines what the feasible products
are and or services that will perfectly suit the opportunity.
2. Concept stage- In the concept stage is developed ideas will undergo a consumer
acceptance test. This includes getting the initial reactions of the primary target market
the distribution channel.
3. Product development stage- in this stage, the entrepreneur leverage on the
information generated from the prospective customers.
4. Test market stage-This stage validates the work done from the first three stages to
measure success in the commercialization of the product or service.
Business opportunity Elements:
1. Has superior value to customers
2. Solve a compelling problem, issues, needs, or wants
3. Is a potential cash cow
4. Matches with the entrepreneur’s skills, resources and risk appetite.
The 4Ps of Marketing are:
(Price, Place, Product, and Promotion) entrepreneur is familiar with his or her
competitors.
The 7 Ps of marketing mix
(Price, Place, Product, Promotion, People, Packaging, Process.)
The 3S of opportunity spotting.
( Seeking, Screening, and Seizing)
The 12 R”S of Opportunity screening
1. Relevance- to vision, mission, and objectives of the entrepreneur. The opportunity
must be aligned with what have as your personal vision, mission, and objectives for
the enterprise you want to set up.
2. Resonance-to values. Other than vision, mission and objectives, the opportunity
must match the values and desired virtues that you have or wish to impart.
3. Reinforcement of entrepreneurial Interests. How does the opportunity resonate
with the entrepreneur’s personal interest, talents, and skills?
4. Revenue. It is important to determine the sales potential of the products you want
to offer.
5. Responsiveness –to customer need and wants. If the opportunity that you want to
pursue address the unfulfilled or underserved needs and wants of customers, then
you have a better chance of succeeding.
6. Reach Opportunities- that good chances of expanding through branches,
distributorships, dealerships or franchise outlets in order to attain rapid growth are
better opportunities.
7. Range- The opportunity can potentially lead to a wide range of possible product or
service offering, thus, tapping many market segments of the industry.
8. Returns- It is a fact that products with low cost of production and operation but
are sold at high
Prices.
8. Revolutionary Impact- is a potential for the chosen opportunity.
9. Returns- can also be intangible, meaning they come in the form of high profile
recognition or image projection.
10. Relative Ease of Implementation- Will the opportunity be relatively easy to
implement for the entrepreneur or will there be a lot obstacles and competency gaps to
overcome.
11. Resources Required – be more favored than those requiring more resources.
12. Risk Takers –entrepreneur encounter threats and calculate risk. However some
opportunities carry more risk than others, such as those with high technological,
market, financial, and people risk.
Product or Service planning and Development Process
1. Idea stage- In this stage, the entrepreneurship determines what are the feasible
products and or services that will perfectly suit the opportunity. A market evaluation
is conducted by the entrepreneur to assess the product or service ideas the value of
new product and services.
2. Concept stage – Once the acceptable product or service has already been
identified. In the concept, stage, the developed idea will undergo a customer
acceptance test. This test includes getting the initial reactions of the primary target
market and the distribution channel.
3. Product development stage – The entrepreneur leverage on the information
generated from the prospective customers via the concept stage. The actual product or
service and record the good qualities and interior attributes.

Summary Module 2
In this module, you have understood the importance of the
entrepreneurial process as a helpful scientific process in guiding the entrepreneur to
follow the right way of establishing a new venture. You understood that scanning the
market environment or spotting the opportunities is the first
Step in the entrepreneurial process. This process is one of the most difficult task in
influencers are the compelling sources of opportunities.
The 3S (Seeking, Screening, and Seizing) of opportunity spotting,
which is the procedural approach to come up with an attractive and refined product or
service. The seeking process is vast and requires macro environmental, micro
environmental, and internal scans. The process are the opportunity supported by
customer insights.
After going through the 3’S of opportunity spotting and assessment, the
entrepreneur needs to be ready to prepare for a business plan. When you have your
own venture in the near future, you will realize the important of these 3’S opportunity
spotting, and that these are practical and methodical approaches to ensure business
success, instead of just purely rely on your guts and emotions.
 Module 3
The Marketing Plan
2nd Quarter
Learning Objectives:
At the end of this module the learner shall be able to…
1. Discuss the unique selling proposition and value proposition that differentiates
one’s product service from exiting product/service.
2. Describe who can determine the customers are in terms of the following:
A. Target market
B. Customer requirements
C. Market size
3. 3.Validate customer-related concern through the following:
A. Interview B. Focus group discussion
C. Observation D. Survey
4. Describe the marketing mix (7ps) in relation to the business opportunity and
vice versa.
A. Product E. People
B. Place F. Packaging
C. Price G. Process
D. Promotion
5. Develop a brand name

After the comprehensive process of seeking, screening the opportunity, it is

now time for the entrepreneur to focus on the chosen business and dig deep.
Entrepreneur must write a business plan. A business plan is a comprehensive paper
that details the situational analysis, objective, strategy, and tactics, and how to
monitor and control the enterprise.
This module will also let you understand and identify what makes a product
or service stand out from the competitor’s trough defining the unique selling
proposition and value proposition of the product or service. You will understand the
behavior, attitude, and psychology of the entrepreneur’s customer through various
ways of customer validation. You will understand in detail and apply the 7Ps of
marketing mix in instigating awareness and driving sales of the business venture.
Last, you will understand the fundamentals in brand management and how branding
gives a specific business an overall appeal and credibility.

Value Proposition and unique Selling Proposition

Value proposition and unique selling proposition, you must first know the marketing
process.
Marketing is all about knowing the customers. Marketing process start with
identifying the customers’ needs where you are tasked to create a meaningful value
proposition. Next, you study what the customers want or desire for you
to build a unique selling proposition. From there, it is impressive to identify the most
strategic marketing or group to tap.
 A Value proposition (VP) simplify states why a customer should buy a
certain product or service. The entrepreneur should bear in mind that a value
proposition has to be direct in addressing the problems of the customers, should have
quantifiable benefits, and should differentiate itself from the competitors.

Following tips are to create an effective value proposition to the

target customers:

1. Prepare a situational analysis that details the problem (s) of the customers.
2. Make your value proposition straight to the points, simple, and specific, in short.
3. Highlight the value of your product or service so that customers will easily get
what benefits you can provide.
4. Adapt to the languages of your market. Your target market understands clearly
what you are trying to say and avoid putting unnecessary and inexplicable phrases.
5. Add credibility –enhancing elements such as actual testimonials from customers,
partners, and other stakeholders, putting specific assurance elements and social
acceptability metrics found in social media or press materials. (Add more credibility to
the product or service that you’re to sell.
6. Differentiate your value proposition with competitors e.g . of value proposition
differentiators
Differentiation are the originality or the product service, its functionalities .or if the
product or service can be tailor –fitted to the customer’s preference, among others.

To illustrate, here is a sample potential value proposition from the most

common small business in the Philippines.

Situational analysis:
Aling Tere’s Sari- Sari store.

A convenience store, in her vicinity, where many call center agents, nurses, and
contraction workers buy food, beverage, and other products during odd hours (from
10:00pm to 6:00am. She discovers that the customers either ride a tricycle or a
jeepney just to reach the convenience store. She decides to establish a 24/7 sari-sari
store. As an initial investment, Aling Tere hires three employees who will help her run
sari-sari store in three shifts. During their break, Aling Tere manage the sari-sari store
herself. She design her sari-sari store like a semi-convenience store, where customers
can freely go and choose the product they want. It is also air-conditioned .For security
purposes, she also installs a CCTV camera. Her task now is to craft a worthwhile value
proposition for the potential customers.
Proposed value proposition:” Tindahang maasahan,bukas kahit
anong oras!”

The following tips to create an effective unique selling proposition to the target
customers:
1. Identify and rank the uniqueness of the product or service attribute. This is
the most difficult part because you only need to choose one or two at the most. The
best way to identifying the marketing mix (7Ps) will be discussed later in this
module.

2. Be very specific. By being specific, make sure that the Unique Selling Proposition
(USP) does not rely on heavy, extravagant promotion. The customers do not want to
feel that they are being fooled.

3. KISS (Keep it short and simple.) One challenge that marketers always face is that
the customers attention span is limited and very easy to switch .Therefore, think of a
very catchy unique selling proposition in the simplest and shortest way possible.
To illustrate, use the example from the previous discussion to build a
potential unique selling proposition for Aling Teres Sari-Sari Store.
The first, step is the identification and ranking of the uniqueness of the potential or
service attribute using the 7Ps of marketing .Make sure that there is a through
explanation and analysis about the ranking.

7Ps Product Place Price Promoti People Packa Process

or on ging
Service
USP Retail Near a call Competitive Signage Tree shifts Semi- The only
description Products center a of Aling conve sari-sari
public Teres nienc store that
hospital and assistants e operates
a (6am-10 store 24 hours
construction pm,10pm- a day 7
site 6pm) days a
week.
Unique? NO NO No No Yes Yes Yes
Ranking of 3 2 1
USPs
Unique
selling
proposition
.

The process was ranked first as the most unique because Aling Tere wants to solve a
compelling problem of the customers. eg. The availability of a store near their
workplace in odd hours. This was based on her marketing research about her
environment .Packaging was rank second because it is the only semi-convenience
store in the area, a hybrid of a convenience store and is sari-sari store .People ranked
third because it is the only sari-sari store that has three persons who work in shifts. It
is common the owner or an assistant attend to the store with a predetermined
schedule and not the entire day.
Proposed unique selling proposition: Tindahang maasahan,bukas kahit
anong oras!
The value proposition and unique selling proposition will only work
effective when customers feel the true benefits of the products or services being
offered. Both the value proposition and unique selling proposition should be clearly
communicated to the target customers in the catchiest way possible Common
communication channels include signage, Web sites, social media, print ads, and
television and radio commercial, and mobile advertisements.

Big Idea: The value proposition and unique selling proposition will only work
effectively when customers feel the true benefits of the product or service being offered.
Know you Customer
After the general scan and research performed during the course of preparation for the
value proposition and the unique selling proposition, it is now time to dig deep and
understand the target customers through marketing research. Marketing research
aims to scrutinize the target market, their specific requirement, and the market size
where the business operates.
Market Size
Market Size is simply the size the arena where the entrepreneurs business will ply. It
is the approximation of the number of buyers and seller in a particular market. The
entrepreneur is required to determine the market size first to gauge the vastness or
tininess of the market where he or she intend to join. The only way to do this to
conduct a strategy marketing research from reliable sources using dependable
methods.
The first step is to estimate the potential market- the approximated number
of customers that will buy the product or avail the service. Usually, this is what you
call the market space or the market universe because this is the total market. For
example, rice, the staple food of Filipinos, virtually cover the whole country in terms of
market size because majority of Filipinos eat rice.
The second step is to eliminate the customers who are probably unlike to
buy the production avail the service. Using the rice retailing business again, the
entrepreneur can already eliminate socioeconomic classes A,B, and C because most of
these customers buy rice bulk (sack) or are freely by some employers .They are also
not the major customers of rice .
The last step is for the entrepreneur to estimate the market share, which is
the plotting and calculation of the competitor’s market share to determine the
remaining portion for the new venture. The entrepreneur should first assess the
market situation via surveys, customer review, or any other data –gathering methods.
From there, he or she will be able to calculate the number of potential customers that
will buy the product or service offered. This will be the basic to decide whether the
business is worth the capital that will used.
Market share computation illustration: Mr. Alvin Antonio, budding
entrepreneur, wants to establish a rice retailing business in his area in
Barangay San Isidro.He wants to know if this business is worth his capital and effort.
He dug deep and found out that there are approximately 500 families in Barangay in
San Isidro with an average of five members per family. He did a survey and found out
That only 475 families eat rice; the consume an average of 1 kilo of rice per day.
There are four other rice retailers in the area that have been there for 10 years already,
And they have equal market shares of 20% each. The other 20% of the market is
buying in bulk (per sack) from groceries or convenience stores .The average net profit
per kilo of rice is P10. How big is the market size and what could be potential market
share of Alvin’s rice retail business?

Market size of rice business in San Isidro = Number of families who eat rice X average
consumption per annum.
Market size = 475 families x 1 kilo per day x 365 days
 =173 375 kilos of rice
Market size profit = 173 375 kilos X P10
= 1733 750 per annum
The object of Mr. Antonio in the first year is to capture the 20% of the market
By implementation marketing strategies in pricing (reduced markup of P2) and
promotion (free delivery of rice for five kilos and up) through text message or phone
call. None of the competitors have through of or done these strategies yet. In the
example, the four rice retailers are considered direct competitors because they offer
exactly the same product and are structured similarly with Mr. Antonio’s proposed
business. On the other hand, offer exactly the same product type (eg. Rice sold in
sacks instead of buy kilo) and are not similarly structured but still compete with
Mr. Antonio’s business indirectly.

Potential market share = market size x estimated market share

=P1 733 750 X20%
=P346 750
However; because Mr. Antonio will reduce the markup by P2, the net profit per kilo
will only become P8.
Potential market share =173 375 kilo X 20% P8
Potential market share = 277 400
This market share for a startup business is an attractive venture. Mr. Antonio also
has a bigger chance of capturing the market share of competitors if he implements
relevant and enticing marketing strategies.

Customers’ requirements
Customers are said to be lifeblood of the business. These people who buy the product
or avail the services of the entrepreneur. Their though, feelings, and experiences shape
the decisions of the business. Thus, the phase “the Customers is always right “
Customers’ requirements are specific features and characteristics that the customers
need from a product or a service.
Entrepreneur must be aware of all these requirements for theme to come up with
features that best suits their needs.
They must know who buys, and what, when, where, how, and most importantly, why
they buy.
Customers’ Requirements Customer requirements are what motivate consumers to
purchase a product or service. By and large, this is driven by a set of needs, including
product functionality, price, reliability, and convenience what are the two types of
customer requirements? There can be two types of customer requirements:

Service Requirement.
Output Requirement. Service Requirements: Intangible aspects of purchasing a
product that a customer expects to be fulfilled.
It consists of elements like on-time delivery, service with a smile, easy-payment etc...
Must Haves.
Satisfiers.
Delighters.
What market size means? Your "market size" is the total number of likely buyers of
your product or service within a given market. ... Your goal is to determine how many
people within your target market are likely to purchase your prod

Primary and Secondary Target Market

The entrepreneur believe in the misconception that they can serve all types of
customers or, if not a wide range of customers. Market intelligence, which includes
customers profiling, drives the entrepreneur on what correct strategies and tactics to
the employee. Market segment is the process of grouping similar or homogeneous
customers according to demographic, Physiographic, geographic (location), and
behavior. It is a necessary activity in marketing because it gives the entrepreneur
A holistic and general view of the market group that he or she is serving. Effective
marketing strategies are implemented.

Primary and secondary Target Market

Know Your Customers
Ten things you need to know about your customers
1. Who they are
if you sell directly to individuals, find out your customers' gender, age, marital
status and occupation. If you sell to other businesses, find out what size and kind
of business they are. For example, are they a small private company or a big
multinational?
2. What they do
if you sell directly to individuals, it's worth knowing their occupations and
interests. If you sell to other businesses, it helps to have an understanding of what
their business is trying to achieve.
3. Why they buy
if you know why customers buy a product or service, it's easier to match their
needs to the benefits your business can offer.
4. When they buy
if you approach a customer just at the time they want to buy, you will massively
increase your chances of success.
5. How they buy
For example, some people prefer to buy from a website, while others prefer a face-
to-face meeting.
6. How much money they have
you’ll be more successful if you can match what you're offering to what you know
your customer can afford.
7. What makes them feel good about buying
if you know what makes them tick, you can serve them in the way they prefer.
8. What they expect of you
For example, if your customers expect reliable delivery and you don't disappoint
them, you stand to gain repeat business.
9. What they think about you
if your customers enjoy dealing with you, they're likely to buy more. And you can
only tackle problems that customers have if you know what they are.
10.What they think about your competitors
if you know how your customers view your competition, you stand a much better
chance of staying ahead of your rivals.
Five C’s of Marketing – description
As mentioned earlier, the Five C’s are Company, Collaborators, Customers,
Competitors, and Climate.
1. Company. This involves an analysis of the company’s product line, its culture,
goals and objectives, and image in the market. We also look at the company’s
technology and experience. The main aim here is to determine whether the company is
in the best position to meet customer needs.
2. Collaborators. Collaborators are businesses or entities that can help the company
achieve its goals and objectives. Suppliers and distributors, for example, are
collaborators.
3. Customers It is important to identify your customers and determine which of their
needs you are attempting to satisfy. What tangible and intangible benefits is the
customer seeking? To compete successfully in the marketplace, you need to know
what the motivation behind your customers’ purchases is. Possible areas of research
are market size, market growth, market segments, purchasing frequency, and
seasonal factors.
4. Competitors. Above all, you need to know who you are competing against in
meeting your customers’ needs. Is the other company a potential threat or an active
competitor? How many of them are there?
What are your rivals’ weaknesses and strengths? Is there anything you can do
regarding those weaknesses and strengths?
5. Climate. When looking at climate, we are assessing macro-environmental factors,
i.e., external factors.
The economic environment, political environment, and regulatory environment, for
example, are part of the ‘climate. ‘Society’s fashions and trends, i.e.,
the social/cultural environment, are also part of the ‘climate. ‘Examining the climate
also includes analyzing the technological environment. What is the impact of
technology on, for example, demand?
Some people use the term PEST Analysis when talking about analyzing the
climate. PEST, in this context, stands for Political, Economic, Social,
and Technological.

Determinants of Investment
Profit is the first consideration in investment. It is profit that stimulates businessmen
to go into business: only the government can possible engage in business without
profit. However, profit depend on population, income, peace and order, political
stability, government policies, and other external economic of scale like energy,
transportation and communication facilities. The internal economies of scale, such as
management, technology, working conditions and financial incentives, also help in the
attainment of profit for the enterprise.

The Role of the Government

In a democracy, the fundamental function of the government is to serve the best
interest of the people.
Those who run the government are called public servants. Their salaries come from
the people thought their tax payments.
Government Assistance Program:
1. Peace and order - is an occurrence of harmony characterized by the lack of
violence, conflict behaviors and the freedom from fear of violence. Businessmen have
to pay revolutionary taxes to the NP as in exchange for their safety and that of their
enterprises.
2. Political stability- is the propensity of a government collapse either because of
conflicts or rampant competition. In our country, government policies are not stable.
3. Price stability - can be defined as a state where changes in the general level of
prices need not be factored into consumption and investment decisions. A change in
the inflation rate weakens the information conveyed by prices, which may distort
economic decisions and thereby undermine economic growth.
4. Taxes -a compulsory contribution to state revenue, levied by the government on
workers' income and business profits, or added to the cost of some goods, services,
and transactions.
5. Infrastructure- the basic physical and organizational structures and facilities (e.g.
buildings, roads, power supplies) needed for the operation of a society or enterprise.
6. Educational and training- Undertaking a course in education and
training prepares you for the real-world where you will train to become confident
facilitators of learning. (Tesda program)
7. Public Administration -Public administration is the implementation of government
policy and also an academic discipline that studies this implementation and prepares
civil employees for working in the public service.
8. Production Technology -would be to include any machinery that makes creating a
tangible physical product possible for a business. To the small business, this means a
workshop at the very least, with more elaborate operations making use of machines
and assembly lines.
9. Marketing assistants- support the work of marketing managers and executives on
projects directed at maximizing company profits and developing sales strategies
or marketing campaigns.
10. Financial assistance -Financial assistance is any type of monetary help or aid
that a person, organization, or government receives. The financial assistance may be
in the form of guarantees, loans, cost-sharing arrangements, subsidies, or welfare
payments.
Geografic segmentation.is simply grouping cutomers according to their location,
Encompases the culture,beliefs, preferences,politics,and life of a certain geography.
The locations being targeted and group places that have similar profile depending on
what is relevant to the product or service to be offered.
Demographic segmentation .is the process of grouping customers accordining to
relevant socioeconomic variable for business venture. It include income raange and
social class ,occupation,gender and religion,and ethnicity.
Gender group are data that must be mined because the life cycle of customers and
their gender buying behavior.
Behavioral segmation. Is the process of grouping the customers according to their
action. These behavior are instigated by occcasion,desired benefits, loyalty,and usage
of produce or availment of serves. Loyalty is the result of maintain satisfied customers.
Loyalty program and rewards separate loyal customers from the new ones.
Psycholgical segmentation. Is the process of grouping customers according to their
perceptions,way of life, and inclination .Perception is aprocess wherein using the five
Senses of hearing, touching, smelling, seeing, and tasting.
involues the needs of the persons.( what customers like or dislikes
2nd Quarter Activity
 Talk show group activity
Apply the 7 Pcs of marketing and four types of segmentation.
Allotted time 3-5 mints only. The name plate is strictly usage.

Guide Questions are the following:

1. Look at your community and find one social entrepreneur.
2. Discuss why you think he or she classified as a social entrepreneur. What social
problem does he or she solve?
3. What do you think are the challenges that a Filipino entrepreneur faces?
4. Despite the entrepreneur spirit of the Filipinos, why do you think that many
Filipinos remain poor and that the disparity between the rich and the poor is still very
high?
5. How many Filipino entrepreneur today do you think also underwent the product or
service planning and development process before they become successful
entrepreneur? Do you think the product or service planning and development process
is really crucial for all entrepreneur? Why or why not?
6. Schedule an interview with an entrepreneur who sells goods and entrepreneur.
who provides a service. Validate from them if they did the fourth stages mentioned. If
they did, ask how they did it .And if the four stages were helpful in their business .If
they didn’t go through the four stages, ask them what alternatives they used.
7. Discuss what the basic problem of the company are.
8. Evaluate the ambiances or location of the area.
9. What types of food they serve.
10.What style of service they can offered.