Module 2

Scanning the Marketing

Environment
Prepared by: Rechel S. Jemiera
Learning Competency:
• Analyze the market need
• Determine the possible product/s or
service/s that will meet the need.
At the end of this module, you are
expected to:
1. identify the process in starting a business;
2. understand the behavior of key Marketing
Environmental forces that have an
implication on marketing decisions;
3. describe the meaning and the concept of
Macro and Microenvironmental Sources. 2
9/3/20XX 3
 -refers to “Big or Macro Forces”
that affect the area, the industry, and
the market which the enterprise
Macro belongs to. These factors influence

Environme how business should be conducted,

how consumers will behave, how
nt supply and demand will move, how
different competitors would
position themselves and how the
cost of doing business will proceed.
 - Are the factors in the immediate
Micro environment. These
are the forces within the company
Environme that affect its ability to serve. It
comprises all those organizations
nt and individuals who directly affect
the activities of a company.
 THE ENTREPRENEURIAL
PROCESS

The entrepreneurial process is a step-by-step

procedure in establishing any kind of business that an
entrepreneur has to undergo.

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 Four Aspects of
Entrepreneurial Process

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THE ENTREPRENEURIAL
PROCESS

The entrepreneurial process is a

step-by-step procedure in establishing
any kind of business that an
entrepreneur has to undergo. It is
composed of four aspects.
9/3/20XX Presentation Title 8
1. Opportunity spotting and assessment.

This is the beginning of the process and is

considered the most difficult. Entrepreneurs at
this point take note of interesting trends in their
environment. Consumers are reliable sources of
opportunity information because market needs
originate from them.

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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, human resource, financial, strategic
direction, and tactics of the business.

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3. Determining the capital needed.

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.

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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.

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Scanning the
Marketing
Environment
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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.
Is the process by which the problems and needs of the
community are recognized.
It involves observing, identifying and evaluating trends,
patterns and events crucial to setting up a business.

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1.Helps identify the kind of business
that answers real problems or
needs in the community.
2.It improves business plans and
prevents premature discontinuing
of a venture. 15
3.Informs and redirects long term
decisions.
4.Helps the entrepreneur clarify
what to explore and to focus on
relevant ideas that create an
impact on the business.
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17
1. These refers to forces that affect the area, the
industry and the market which the enterprise
belongs to._________________
2. These are factors in the immediate environment,
these directly affect the activities of a
company_________________
3. This a step-by-step procedure in establishing any
kind of business that an entrepreneur has to
undergo__________________________
9/3/20XX Presentation Title 18
4. This is the starting point of any new venture
that involves understanding and knowing the
intricacies of the macroenvironment,
microenvironment, and internal
environment_____________________
5. This is a comprehensive paper that details the
marketing, human resource, financial, strategic
direction, and tactics of the
business._______________________
9/3/20XX Presentation Title 19
6-7 (Give 2 Entrepreneurial Process)
Tell whether it is Macro Environment or
Micro Environment
8. Culture -______________________
9. Employees -___________________
10. Society-_____________________
9/3/20XX Presentation Title 20
Answers: (6-7)
Opportunity spotting and
1. Macro Environment Assessment,
Developing a Business Plan,
2. Micro Environment
Determining the capital needed,
3. Entrepreneurial process Running the Business
4. Scanning The Environment
5. Business Plan
8. Macro
9. Micro Environment
10. Macro
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Assignment:
1.What are the 3 ‘S of Opportunity
Spotting?
2.Define Opportunity
3.What are Macroenvironmental and
Microenvironmental Sources?

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 OPPORTUNITY
SPOTTING

9/3/20XX Presentation Title 23

 Seeking the Opportunity
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 potentially become a commercial product or service in the
future.
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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 of new ideas from

various sources as follows:
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 MACROENVIRONMENTAL SOURCES

a. STEEPLED. This is a mnemonic for sociocultural,

technological, economic, environmental, political, legal,
ethical, and demographic factors. This represents the
general environment where entrepreneur can identify
business opportunities from and where the future
business is about to operate.

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b. Industry. This is the source of current trend on what is
happening in the industry where the future business will
belong to.

c. New discovery or knowledge. These are new trends

that can be the core business model of a new venture.

d. Futuristic opportunities. These are projected new

opportunities that can possibly affect the new business
while it is running.
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 STEEPLED
ANALYSIS

9/3/20XX Presentation Title 28

 STEEPLED Analysis
The result of the STEEPLED scan will aid the
entrepreneur in deciding what product or service to set
up and whether this new venture will succeed or not.
The focus of this scan is only on the
macroenvironment. Again, not all factors can have an
effect on the new venture.
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STEEPLED
1. Socio-cultural factors. These factors represent
a general view of a locality’s traditions, customs,
beliefs, norms, and perception. These factors
affect how a person of the locality behaves and
reacts to marketing and selling activities.

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2. Technological factors. These are composed of
innovations of an existing technology or an
invention of a new one mostly on applied science
and engineering research areas. Entrepreneurs
should always be up-to-date with the technological
changes, as these are catalysts in improving a
product or service or replacing them entirely.

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3. Economic factors. These factors play a
vital role in the scanning of marketing
environment because economic factors
directly affect any business venture. These
factors include income, expenses, and
resources that can influence the cost of doing
business and generating income.

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4. Environmental or ecological factors. These factors
should be given much importance in conducting a
business especially when the world has already
suffered severely from human-induced calamities. The
scan of these factors will help the entrepreneur
determine if the business he or she is entering into will
comply with the environmental standards or will just
be a hazard to people, animals, and nature.

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5. Political factors. These factors are mostly
induced by government policies and
administrations, which can have a strong effect
in the entrepreneur’s business.

6. Legal factors. Related with political factors legal

factors are government laws and regulations that can
restrict or allow business activities.

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7. Ethical factors. These are the factors that
will serve as an entrepreneur’s guide on how to
be ethical in running the business.

8. Demographic factors. These are the

characteristics of the people in the target
market.

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MICROENVIRONMENTAL SOURCES

Microenvironmental forces are those that are

distinct and individual, such as customers,
producers, marketing intermediaries, public
entities and the company itself.

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MICRO MARKET

a. Consumer preferences, interests, and perception.

These are the current needs and wants of potential
customers that should be discovered right away by a
budding entrepreneur. This way, he or she will be able
to take a chance of the opportunity.

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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 the
competition.

c. Unexpected opportunities from customers. Oftentimes, the

most brilliant ventures come from the most unexpected
opportunities. It may happen in unlikely situations, unlikely
places, and with unlikely people. Existing problems and
bottlenecks often give rise to an unexpected opportunity.
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d. Talents, hobbies, skills, and expertise. Business
opportunities do not just come from outside forces, but
also from within the entrepreneur. The entrepreneur’s
talents, hobbies, skills, or expertise can be a source of
business opportunity.

e. Irritants in the marketplace such as deterrents, problems,

complaints, and delays. Generally, entrepreneurs see
opportunities in situations where there is a recurring
problem or sometimes when there is no more hope in
solving the problem.
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f. Location. Often, entrepreneurs just have to look at their
ecosystem and they will be able to spot a business
opportunity right away. For example, if the entrepreneur’s
location has many schools, then a restaurant, an eatery, or 13
probably a computer shop might be a good business to
establish. If the entrepreneur is an island with an awesome
beachfront, why not put up a hotel?

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 Methods of
Generating Ideas

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1. Focused group (FGD). In this
method, a moderator handles a very
open, free flowing, and in-depth
discussion with a group of people who
can provide insightful ideas about a new
product or service that will fill a market
need.
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2. Brainstorming. Similar to an FGD, brainstorming
is an activity that allows the participants to share
creative ideas using the following rules: (a) no
destructive criticism or judgment is allowed, (b)
wilder ideas are accepted, (c) more ideas are
preferred, and (d) improvement of others’ ideas is
allowed. In short, brainstorming is a fun discussion
with lenient rules.

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3. Brainwriting or Internet brainstorming. This is
exactly the same as brainstorming except that the
channel used is not face-to-face, but in writing or
online. The results of Brainwriting or Internet
brainstorming usually take longer, as the answers
depend on the availability of the participants in
answering the questionnaires online.

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4. Problem inventory analysis. This method is
similar to the FGD except that the participants are
already given an inventory of product or service
problems. The participants will just identify from the
list given the compelling problem(s) of a potential
product or service instead of generating the ideas
from them.

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Summary
As the saying goes, the most difficult part of
every task is where and how you start. The same is
true with entrepreneurship. You may have all the
resources needed to operate a new venture, but it
will never be easy to start one.
As a result, you will deal with analyzing the
need of the market, think of the potential set of
products or services that will meet the need, assess
the feasibility of the solution, and select the best
product or service that will address the need.
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 v i t y # 2 Write on a One whole sheet of paper,

c ti
Add additional Row if needed

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 g n m e n t
A ssi
Module 3
Be ready for
Summative Test #2
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Than
k you
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