Lesson 4

Analyze the Market need, determine the

possible product or service and select the
best product or service that will meet the
market need
Lesson Objectives:
• Analyze the Market need and determine the
possible product or service that will meet the need;
and
• Select the best product or service that will meet
the market need.
FOUR (4) PICS ONE WORD
FOUR (4) PICS ONE WORD
FOUR (4) PICS ONE WORD
 Who are the Entrepreneurs?
- They are unique individuals who have the innate ability and
extraordinary dedication to establish and manage a business,
acknowledging all the risks and reaping its rewards.
- In simple term, they are the businessmen or businesswomen
who start a business, taking the risks and acknowledging a
market need or problem.
 Common Entrepreneurial Competencies
- Proactive – reactive rather than passive.
- Agents of change – innovation champions.
- Risk takers – they calculate risks.
- Have a sharp eye of opportunity- recognizing an
opportunity
- Sociable – Soft skills are one of the most important
competencies of entrepreneurs
 Common Entrepreneurial Competencies
- Networkers – know the key people to connect with.
- Decisive – do not settle for gray areas.
- Balanced- balanced between the analytical and the
creative side.
- Innovative - do not stop improving and thinking of new
and worthwhile ideas for business.
 Core Entrepreneurial Competencies
- Leaders – know how to unite the team and bring out the best in
every employee.
- Communicators – know how to use all forms of communication.
- Specialists – experts in their chosen business.
- Problem Solvers – possess critical thinking skills and look at
problem as challenges or puzzles that they need to solve.
 How do entrepreneurs identify market need or
problem?
- One of the common entrepreneurial competencies of an entrepreneur is
having a sharp eye on opportunity and one of the core entrepreneurial
competencies of an entrepreneur is being a problem solver.
- In order to solve a problem, they should know how to spot or identify a
problem in the market that can be an opportunity to them.
Simple steps on how to identify market need or
problem:
 Identify your skills, interests & goals

- Before you can start a business or having a business idea

based on the market need, you should asses yourself first.
- What are my skills, interests as well as my goals in life?
 Know the difference between needs, wants &
demands
- Needs are the basic human requirements such as for air, food, water,
clothing, and shelter. Humans also have strong needs for recreation,
education, and entertainment.
- These needs become wants when directed to specific objects that might
satisfy the need.
- Demands are wants for specific products backed by an ability to pay.
Needs,
 Recognize your potential market and their need

- You are now aware of the difference of the needs from wants and from
demands; the next step is to identify your potential market.

- Potential market is a group of consumers that shows some level of interest

in a market offer. These are the people that might buy your product when
you sell to them.
 4.2 Select the best product
or service that will meet the
market need
MACRO ENVIRONMENTAL SOURCES
MACRO ENVIRONMENTAL SOURCES
MICRO MARKET SOURCES
 SWOT ANALYSIS

- SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a SWOT
Analysis is a technique for assessing these four aspects of your business.
- You can use SWOT Analysis to make the most of what you've got, to your
organization's best advantage.
- And you can reduce the chances of failure, by understanding what you're lacking, and
eliminating hazards that would otherwise catch you unawares. Better still, you can start
to craft a strategy that distinguishes you from your competitors, and so compete
successfully in your market.
 2. OPPORTUNITY SCREENING

- Opportunity Screening- is the process of

cautiously selecting the best opportunity.
- The selection will depend on the entrepreneur’s
internal intent and the external intent.
 Business Opportunity Elements

1. Has a superior value to customers

2. Solves a compelling problem, issue, a need, or a want
3. Is a potential cash flow
4. Matches with the entrepreneur’s skills, resources, and risk
appetite
 Vision Statement , Mission Statement and
Value creation proposition
Vision Statement – simply defined as what the business should do in the future.

Mission Statement – defines the company’s business, its objectives and its approach to
reach objectives
- the overall purpose of the business

Value creation proposition - A value proposition is a business or marketing statement that

a company uses to summarize why a consumer should buy a product or use a service.
 Vision Statement , Mission Statement
Example
Example of Vision
Our vision is to be the leading academic institution, which provides accessible
education and advocates integral formation, that is strongly anchored on a God-
centered community.

Example of Mission
Our mission is to mold our students to be competent, globally competitive, socially
responsible, and productive members of the society through a faith-based and value
based-educational system.
3. OPPORTUNITY SEIZING
 Product or Service Planning and
Development Process
1. Idea Stage- In this stage, the entrepreneur determines what are the feasible products
and/or services that will perfectly suit the opportunity.
2. Concept Stage- Once acceptable product or service has already been identified, it will
go through the concept stage. The developed idea will undergo a consumer acceptance test.
3. Product development stage - The entrepreneur leverages on the information generated
from the prospective customers via the concept stage. The entrepreneur will conduct a
consumer panel where the actual product samples or actual service samples will be given or
rendered to the panel of potential customers.
 Product or Service Planning and
Development Process
4. Test marketing stage - This stage validates the work done
from the first three stages to measure success in the
commercialization of the product or service.
- Actual sales results will be the foundation of the consumers’
acceptance level and will be the basis in commercializing the
product or service.