Analyzing the Market Needs

The Entrepreneurial Process of

Creating New Venture
 Creation of Identification of Opening of
entrepreneurial entrepreneurial entrepreneurial
idea activity venture

• The creation of entrepreneurial ideas leads to the

identification of entrepreneurial opportunities, which
in turn results in the opening of an entrepreneurial
venture. (Aduana, 2017)
Essentials in Entrepreneur’s
Opportunity Seeking
These are the foundation that the entrepreneur
must have in seeking opportunities:
• Entrepreneurial mind frame - this allows the entrepreneur to see things in a
very positive and optimistic way during a difficult situation. Being a risk-
taker, an entrepreneur can find solutions when problems arise.
• Entrepreneurial heart flame - entrepreneurs’ driven passion, they are
attracted to discover satisfaction in the act and process of discovery. Passion
is the great desire of an entrepreneur to achieve his/her goals.
• Entrepreneurial gut game - this refers to the ability of the entrepreneur of
being intuitive. This is also known as intuition. The gut game also means
confidence in oneself, and the firm believes that everything you aspire to
can be reached.
Types of Business
A type of business identifies how you take
part in the business field that you choose.
Your personal characteristics and your
available networks often guide you into a
suitable type of business.
There are three types of business according to
activities:
• Services
• Merchandising
• Wholesaling
• Retailing
• Manufacturing
1. Services
Service providers are people whose businesses sell a particular service,
such as transportation, tours, hairdressing, banking, deliveries,
construction, repairs, cleaning, painting, nursing, etc. If you enjoy
working with people and satisfying their specific needs providing
services may be your forte.
Yamato has been working for a courier company for many years. He
learned how to manage the courier business and how to develop the
required networks. He is considering opening his own courier service to
operate in his barangay in the City of San Fernando.
2. Merchandising
Merchandising is a business that sells tangible products. This type buys finished goods or almost
finished goods from their suppliers and resells the same to customers. There are two types of
merchandising businesses.
a. Wholesaling
Wholesalers are businesses that buy large quantities of certain goods from manufacturers and
resell those goods to retail outlets, who then resell them to individual consumers. If you are
familiar with companies that make and sell their goods in bulk and you are good at establishing
relationships with retailers, you may want to be a wholesaler.
Valir worked for a construction materials company for several years. He is very familiar with all
the brands and knows the quality of various construction materials. When repairing his house
last year, he realized that there was no shop in the area selling the supplies he needed. He
decides to open a shop near his home, selling all types of basic construction materials, such as
cement, bricks, tiles, sand, paint, etc. He enjoys meeting people and advising them about the
different types of construction materials.
2. Merchandising
b. Retailing
Retailers purchase ready-made goods from wholesalers or suppliers for
resale at a profit. Some examples of retail businesses are grocery stores,
appliance stores, clothing stores, stationery stores, computer, and mobile
phone shops, etc. If you like meeting different people and you have access
to a good location to open shops. Retailing may be a good option for you.
Kimmy loves fashion. While she was a student at the University, Kimmy
went shopping and discovered a source of inexpensive imported clothes
and accessories. She decides to buy fashion items from that source and
resell it in an e-business (online business).
3. Manufacturing
Manufacturers are businesses that use new raw materials, such as leather, waste
material, wood, cloth, or metal, and make new or different products out of those
materials. Some examples of manufacturing businesses are shoemakers,
dressmakers, furniture makers, paper producers, and farm equipment,
manufacturers. If you know how to produce a good and to make something that
is in demand and valuable to customers, you may want to go into manufacturing.
Tanjiro has grown up in a farmer’s family. His parents grow seasonal vegetables to
sell to the palengke in their barrio. Tanjiro has graduated from an Agricultural
College. He knows various planting techniques and is enthusiastic about
promoting the planting, sales, and consumption of organic foods in her
community. Tanjiro decides to grow organic vegetables on her parent’s farm and
to sell the products through their retail palengke networks.
Target
Market
• Market Targeting is a sage in the market identification process that
aims to determine the buyers with common needs and
characteristics.
• Prospect customers are the market segment that entrepreneurial
venture intends to serve. In targeting a specific market, it will exclude
people even if it will not fit your criteria.
• Rather, target marketing allows you to focus your marketing money
and brand message on a specific market that is more likely to buy
from you than other markets. Product is a more affordable, efficient,
and effective way to reach potential clients and generate business.
Commonly used methods for
segmenting the market are as
follows:
1. Geographic segmentation – the total market is divided
according to geographical location.
• Variable to consider

a. Climate c. Culture
b. Dominant d. Density
ethnic group (either rural or
urban)
2. Demographic Segmentation – divided based on the
consumers.
• Variable to consider

a. Gender e. Education
b. Age f. Religion
c. Income g. Ethnic group
d. Occupation h. Family size
3. Psychological Segmentation- divided into terms for
customers to think and believe.
• Variable to consider

a. Needs and wants e. Knowledge and

awareness
b. Attitudes f. Brand concept
c. Social class g. Lifestyle
d. Personality traits  
4. Behavioral Segmentation- divided according to customers’
behavior patterns as they interact with a company.
• Variable to consider

a. Perceptions d. Benefits

b. Knowledge e. Loyalty

c. Reaction f. Responses
1) Needs and Wants
2) Loyalty
3) Age
4) Religion
5) Climate
6) Lifestyle
7) Responses
8) Social Class
9) Knowledge
10)Occupation
Customer Requirement
1. Service Requirement
An intangible thing or product that is not able to be touched but the
customer can feel the fulfillment. There are elements in service
requirements like on-time delivery, service with a smile, easy payment,
etc. It includes all aspects of how a customer expects to be treated
while purchasing a product and how easy the buying process goes.
2. Output Requirements
The tangible thing or things that can be seen. Characteristic
specifications that a consumer expects to be fulfilled in the product.
The customer that will avail services as a product, then various service
requirements can take the form of output requirements. For example, if
the consumer hires a multi-cab, then on-time arrival becomes an
output requirement. Customer buys gadgets (phone speaker), and
specification like loudness and clarity are the output requirements.