Identifying

Market Problem
Objectives:
The students can:

1. Identify the market problem to be solved or the market to be met

2. Propose solution/s in terms of product/s and service/s 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. Select the best products or services that will meet the market
need
 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 specific
opportunity

Opportunity Opportunity Opportunity

Seeking Screening Seizing
 Opportunity Seeking

– it involves the development of new ideas from various sources as

follows:
a. Macroenvironmental Sources
• Socio-Cultural
• Technological
• Economic
• Ecological
• Political

b. Microenvironmental Sources
• Customers
• Resellers
 Macroenvironmental Sources

Socio-Cultural

- Are primarily linked with the different factors that affect a society’s
values and preferences
 Macroenvironmental Sources

Technological

- Every entrepreneur must closely keep an eye on the technological

environment in order to keep up with any improvements.
 Macroenvironmental Sources

Economic

- Economic forces pertain to factors that are intertwined with the

purchasing power and spending behavior of the consumers.
 Macroenvironmental Sources

Ecological

- Ecological forces are significant for they relate to the natural resources
that are needed as inputs by any entrepreneur.
 Macroenvironmental Sources

Political

- Political and legal forces are brought about by the existing rules and
conditions imposed by the government- legislative, executive and the
judiciary.
 Microenvironmental Sources

Customers

- Operating a business will never be successful without the capability of

drawing the attention of your targeted customers.
 Microenvironmental Sources

Resellers

- These middlemen are essential in the aspects of promotion, sales,

distribution, and financial mediation.
 Assess your understanding

1. What are the 3s of Opportunity Spotting and Assessment?

2. Explain their importance.

3. What is the first step in opportunity spotting and assessment?

4. What is expected to be done in the first S of opportunity spotting and

assessment?

5. Are all market problems business opportunities?

 Opportunity Screening

– is the process of cautiously selecting the best opportunity

Opportunity Screening Matrix (OSM) aims to assist entrepreneur

concretize the evidence that the chosen opportunity (or opportunities) is
well worth pursuing.
Opportunity Screening Matrix (OSM)
Opportunity Screening
12 Rs of
 12 Rs of Opportunity Screening

Relevance Range

Resonance Revolutionary Impact

Reinforcement of Entrepreneurial Returns

Interests
Revenues Relative Ease of Implementation

Responsiveness Resources Required

Reach Risks
 12 Rs of Opportunity Screening
Relevance

– Will the opportunity selected allow the entrepreneur to get closer to his
or her long-term goals?
 12 Rs of Opportunity Screening
Resonance

– Does the opportunity ring through to the value system of the

entrepreneur?
 12 Rs of Opportunity Screening
Reinforcement of Entrepreneurial Interests

– Does the opportunity strengthen or improve whatever existing enterprise

strategies, products and markets that the entrepreneur has?
 12 Rs of Opportunity Screening
Revenues

– Will the opportunity bring about revenues or sales potential?

 12 Rs of Opportunity Screening
Responsiveness

– Does the opportunity answer to the actual or related demands, needs, or

wants of the envisioned consumers?
 12 Rs of Opportunity Screening
Reach

– Will the opportunity allow the enterprise to have a wider or broader

market reach?
 12 Rs of Opportunity Screening
Range

– Will the opportunity allow the entrepreneur to come up with a range of

products and services that could exponentially expand the market?
 12 Rs of Opportunity Screening
Revolutionary Impact

– Will the opportunity create a far-reaching change in the industry, thus,

making more beneficial products or services?
 12 Rs of Opportunity Screening
Returns

– Does the opportunity promise to yield substantial profits and returns on

investments (ROI)?
 12 Rs of Opportunity Screening
Relative Ease of Implementation

– Is the opportunity considerably easy for the entrepreneur to do, but

difficult for others to venture in?
 12 Rs of Opportunity Screening
Resources Required

– Will the opportunity require massive resources or can it be pursued with

little investment or capital?
 12 Rs of Opportunity Screening
Risks

– What are the risks involved in selecting the opportunity?

 Opportunity Screening Matrix (OSM)
Opportunity Screening
12 Rs of

Note:
1. Rate x Weight = Score
2. Sum up the raw score. The opportunity with the highest score is your best opportunity.
3. Criteria 1 to 10 are positive indicators; meaning, the more of them, the better.
4. Criteria 11 and 12 are negative indicators; meaning, the less of them, the better.
 Assess your understanding

1. What is the second step in opportunity spotting and assessment?

2. What tool helps entrepreneurs to conduct the step?

3. Explain how the second step is conducted.

 Opportunity Seizing

– involves refining and developing opportunities

– Four Stages of Opportunity Seizing

1. Idea Stage
2. Concept Stage
3. Product Development Stage
4. Test Marketing Stage
 Four Stages of Opportunity Seizing

Idea Stage

– In this stage, the entrepreneur determines what are the feasible products and/or
services that will perfectly suit the opportunity.
 Four Stages of Opportunity Seizing

Concept Stage

– The developed idea will undergo a consumer acceptance test.

 Four Stages of Opportunity Seizing

Product Development Stage

– In this stage, the entrepreneur leverages on the information generated

from the prospective customers via the concept stage.
 Four Stages of Opportunity Seizing

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.
 Assess your understanding

1. What is the third step in opportunity spotting and assessment?

2. What must be done in this stage?

3. In your own words, summarize the whole process of opportunity

spotting and assessment.
 Guided Practice
Complete the table below. Provide a relevant solution to the market problem that is
also an opportunity for an entrepreneur, and support your answer by providing a
brief explanation.

Market Problem Business Opportunity Explanation

Example:    
Casually misplacing items Device Tracker By offering a device tracker in the
market, people will no longer have
a hard time finding their
misplaced items as they can
connect it to their phones, and
track it.
 
1. Students’ inability to go to the    
school due to the pandemic
 
2. Citizens’ inability to    
communicate to their loved ones
who are far from them
 
Thank you!