Lesson 1: Entrepreneurship

st
1 QUARTER: WEEK 1 Entrepreneurship NO LC CODE

Expected Learning Outcome/s:

1. Understand the concepts of Entrepreneurship.
2. Familiarize with the characteristics of a successful entrepreneur.
3. Plan for a business that fits one’s interest.

What’s In?

Fill out the KWL chart about your idea of entrepreneurship.

KWL Chart
What I already Know What I Want to Know What I Learned about
about the lesson? about the lesson? the lesson?

What’s New?

Entrepreneurship refers to the concept of developing and managing a business

venture in order to gain profit by taking several risks in the corporate world. Simply put,
entrepreneurship is the willingness to start a new business. It has played a vital role in the
economic development of the expanding global marketplace.
 An entrepreneur is someone who is willing to work for himself and by himself.
There are several different meanings of the term entrepreneurship. Success in
entrepreneurship is not just about your idea or your money. Plenty of people have
interesting ideas or a lot of cash to throw around — and they never quite manage to find
success in their ventures.

What’s More?

Skills Required by Entrepreneurs

An entrepreneur is commonly seen and perceived as an innovator. The skills
required for successful entrepreneurship are innovation and ability to be creative to
generate new ideas for a business venture. An entrepreneur must have the quality of
leadership and a strong sense of unified teamwork to gain maximum benefit.
7 Characteristics of Successful Entrepreneur
1. Self-Motivation

One of the most important traits of entrepreneurs is self-motivation. When you

want to succeed, you need to be able to push yourself. You are not answerable to anyone
else as an entrepreneur, and that sometimes means that it is hard to get moving without
anyone to make you. You need to be dedicated to your plan and keep moving forward —
even if you are not receiving an immediate paycheck.
2. Understand What You Offer
 As an entrepreneur, you need to know what you offer, and how it fits into the
market. Whether it is a product or a service, you need to know where you fit in. That means
you need to know when it is time to tweak things a little bit. This also includes knowing
whether you are high end, middle of the road or bargain. Being able to position yourself
and then adjust as needed is an important part of entrepreneurship.
3. Take Risks

Successful entrepreneurs know that sometimes it is important to take risks.

Playing it safe almost never leads to success as a business owner. It is not about taking just
any risk, though. Understanding calculated risks that are more likely to pay off is an
important part of being an entrepreneur. You will need to be willing to take a few risks to
succeed. It is the willingness to face challenges.
4. Know How to Network

Knowing how to network is an important part of entrepreneurship. Sometimes

who you know is an important part of success. Being able to connect with others and
recognize partnership opportunities can take you a long way as a business owner. Figure
out where to go for networking opportunities and make it a point to learn how to be
effective.
5. Basic Money Management Skills and Knowledge
 We often think of successful entrepreneurs as “big picture” people who do not
worry so much about managing the day to day. And it is true that you might have an
accountant or other team members to help you manage the business. However, if you want
to be successful, you should still have basic money management skills and knowledge.
Understand how money works so that you know where you stand, and so that you run your
business on sound principles.

6. Flexibility

To a certain degree, you need to be flexible as an entrepreneur. Be willing to

change as needed. Stay on top of your industry and be ready to adopt changes in processes
and product as they are needed. Sometimes, you also need flexibility in your thinking. This
is an essential part of problem-solving. You want to be able find unique and effective
solutions to issues.
7. Passion
 Finally, successful entrepreneurs are passionate. They feel deeply about their
product or service or mission. Passion is what will help you find motivation when you are
discouraged and it will drive your forward. Passion is fuel for successful entrepreneurship.
If you find yourself losing your passion, that might be the clue that it is time to move on to
something else. There are many serial entrepreneurs that create successful businesses, sell
them, and then create something else.
As you consider your characteristics, think about how to better develop them
to help you become a better entrepreneur. When more and more people began to settle in
stable communities and live as a group, a drastic change was observed in their lifestyles.
The fact that each tribe had an individual leader who specialized in one task
cannot be overlooked. Each leader specializing in a particular task helped in speeding
innovation and development of leadership quality in the individuals. The leadership quality
is what makes the entrepreneurs so successful in entrepreneurship today.

What I Have Learned?

o Entrepreneurship refers to developing and managing a business.

o An entrepreneur is someone who is willing to work for himself
and by himself.
o The skills required for successful entrepreneurship are
innovation and ability to be creative.
o The seven characteristics of a successful entrepreneur are: self-
motivation, understand what you offer, take risks, know how to
network, basic money management skills and knowledge,
flexibility, and passion.

What I Can Do ?

The advantage of having maximum control on the work you do can often help
you gain maximum benefit. Being the authoritative figure at your workplace often leads to
a lot of personal and professional benefits. Flexibility is one of the perks that people often
look for in their professional careers and in entrepreneurship this advantage comes easily.
 One excellent aspect of entrepreneurship is that all entrepreneurs enjoy the
advantage of coming up with diverse ideas that may also be unique in the global
marketplace. Having a diverse range of ideas to choose from, according to your
entrepreneurial mission, you can gain maximum benefit from the ideas you come up with.
For any enthusiast in the corporate world, starting your own business may prove
to be a remarkable idea. Having control over the work you do is something that many
people long for in their career paths. Therefore, entrepreneurship is a great career option
for those willing to make their name in the corporate world.
The search for quality leadership is an on-going process that is in practice since
past few centuries. The need of a good leader is one of the factors that led to the evolution
of entrepreneurship. Aside from this, there are several other factors that led to the beginning
and increasing importance of entrepreneurship.

Assessment

A. Identify what is asked in each statement below and write your answer on the blank
before each number.
_______________1. It refers to the concept of developing and managing a business
venture.
_______________2. He is willing to work for himself and by himself.
_______________3. These are the skills required for a successful entrepreneurship
_______________4.
_______________5. It is understanding how money works.
_______________6. It is the willingness to face challenges.
_______________7. It helps find motivation and is the fuel for successful
entrepreneurship.
_______________8. It is the willingness to change.
_______________9. It is an important part of entrepreneurship.
______________10. It is one of the most important traits of entrepreneurs.

B. Enumerate the seven characteristics of a successful entrepreneur and discuss each.

 Characteristics Discussion
1. 1.
2. 2.
3. 3.
4. 4.
5. 5.
6. 6.
7. 7.

1.
Enrichment
2.
3.
4.
A. Choose a business that fits your interest. Explain your answer.
5.
6.
7.
B.

How will you

start your
business?

C.

What
advertisement you
will do to promote
it?
 D.

Using technology, how

will you promote your
business?

Answer Key

A. 1. Entrepreneurship
2. Entrepreneur
3. innovation
4. ability to be creative
5. Basic Money Management Skills and Knowledge
6. Take risks
 7. Passion
8. Flexibility
9. Know how to network
10. Self-motivation

References

[Link]
[Link]
 Lesson 2: Entrepreneurship 2
st
1 QUARTER: WEEK 2 Entrepreneurship 2 NO LC CODE

Expected Learning Outcome/s:

1. Understand the key concepts of entrepreneurship.
2. Explore job opportunities as an entrepreneur.
3. Familiarize with the good characteristics of a good entrepreneur.
4. Appreciate the positive viewpoints of entrepreneurial skills.

What’s In?

Entrepreneurial development today has become very significant; in view of its

being a key to economic development. The objectives of industrial development, regional
growth, and employment generation depend upon entrepreneurial development.
Entrepreneurs are, thus, the seeds of industrial development and the fruits of
industrial development are greater employment opportunities to unemployed youth,
increase in per capita income, higher standard of living and increased individual saving,
revenue to the government in the form of income tax, sales tax, export duties, import duties,
and balanced regional development.
The word “entrepreneur” is derived from the French verb enterprendre, which
means ‘to undertake’. This refers to those who “undertake” the risk of new enterprises. An
enterprise is created by an entrepreneur. The process of creation is called
“entrepreneurship”.
Entrepreneurship is a It

What’s New?

THE CONCEPT OF ENTREPRENEURSHIP

Entrepreneur Entrepreneurship Enterprise

Person Process of action Object

Basically, an entrepreneur is a person responsible for setting up a business or an
enterprise. He has the initiative, skill for innovation and who looks for high achievements.
He is a catalytic agent of change and works for the good of people. He puts up new green
 field projects that create wealth, open up many employment opportunities and leads to
growth of other sectors.
Entrepreneurship involves decision making, innovation, implementation,
forecasting of the future, independency, and success first and this is how entrepreneurship
developed.
Entrepreneurship is a discipline with a knowledge base theory. It is an outcome of
complex socio-economic, psychological, technological, legal and other factors. It is a
dynamic and risky process. It involves a fusion of capital, technology and human talent.
Entrepreneurship is equally applicable to big and small businesses, to economic and non-
economic activities. Different entrepreneurs might have some common traits but all of
them will have some different and unique features. If we just concentrate on the
entrepreneurs then there will be as many models as there are ventures and we will not be
able to predict or plan, how and where, and when these entrepreneurs will start their
ventures.
Entrepreneurship is a process. It is not a combination of some stray incidents. It is
the purposeful and organized search for change, conducted after systematic analysis of
opportunities in the environment. Entrepreneurship is a philosophy- it is the way one
thinks, one acts and therefore it can exist in any situation be it business or government or
in the field of education, science and technology or poverty alleviation or any others.
Entrepreneurship can be described as a process of action an entrepreneur undertakes
to establish his enterprise. Entrepreneurship is a creative activity. It is the ability to create
and build something from practically nothing. It is a knack of sensing opportunity where
others see chaos, contradiction and confusion. Entrepreneurship is the attitude of mind to
seek opportunities, take calculated risks and derive benefits by setting up a venture. It
comprises of numerous activities involved in conception, creation and running an
enterprise.

The Best Jobs for Aspiring Entrepreneurs

If you are an aspiring entrepreneur, there are different career paths you can take
to turn your dream into a reality. Which path you choose will depend on your experience,
skills, finances, and flexibility, as well as your goals for the future.
Even though some entrepreneurs have become successful without spending time
in a traditional workplace, many people do have solid work experience before starting their
own business. That experience equips them with the skills they need to get a business off
the ground and up and running.
 There are jobs that will hone your entrepreneurial skills while you learn the ins
and outs of running a business. As well, working in roles where entrepreneurship is valued
can give you some of the rewards without the responsibility.
The other path you can take is to find a job where you don’t have to work when
you are not on the clock. There are plenty of jobs with regular schedules that give you
free time to spend on your own projects.
There are also jobs and gigs where you can work a flexible schedule that leaves
you time to pursue your passion. It can also make financial sense to start a new venture as
a side job because not all new businesses are successful. The success rate is low for at
least the first few years. Having an income, you can count on while you grow your own
business can be a solid strategy for success.
Jobs Where You Can Gain Entrepreneurial Skills
If you focus on jobs that align with your aspirations, you will be able to develop
the skills you need either to start your own venture on a full-time basis or as a side job or
gig to eventually transition into your own full-time business.
The jobs that are the best fit for you will help you gain experience in the career
field or industry where you want to launch your own business. These are some of the
positions that will give you the general experience you need to equip yourself for going it
alone.
• Advertising, Marketing, and Public Relations: Working in advertising, marketing or
public relations will provide you with the know-how to reach an audience for your own
product or service when you’re ready to get started. You may be able to tap the valuable
connections you’ve met on the job for your new venture.
• Business Development: If you have strong business development skills, you will be able
to use them to identify opportunities for your own future business. You will also gain the
ability to grow and manage a business, which will be invaluable when you’re working on
your own.
• Design: Whether you work in fashion, home, or product design, these skills will help you
create your own product or service and get it ready to launch.
• E-commerce and Social Media: Most businesses have an online presence, and if you are
knowledgeable about online sales and search engine optimization (SEO), you will have a
head start getting your venture live. Whether you are starting a small local firm or planning
to roll out your venture on a larger scale, strong social media skills will be essential.
• Management: There are management positions available in every industry. Whether
you’re starting out in a management training program or have moved up the career ladder,
working in management will give you the leadership, people, and communications
experience you will need to be successful.
 • Software, Web, or App Developer: Every business needs technology, and the work you
do for your employer will enhance your skill set and give you transferable skills to use to
start and grow your own business.
• Real Estate: Working in real estate can build the sales, marketing, finance,
communications, self-motivation, and other skills successful entrepreneurs need.
• Sales Manager/Account Executive: Sales and sales management positions provide
experience and opportunities to excel and generate income, meet and achieve goals, and,
most importantly, the ability to sell a product or service.
• Consultant: Working for a major consulting firm will give you experience in a variety of
industries and types of companies. In addition to gaining experience, you will have an
insider perspective on many different types of organizations.
• Product Manager: Successful product managers work on a product through research,
development, engineering, manufacturing, going live, and distribution. That experience
transitions seamlessly from someone else’s product to your own.

Difference Between an Entrepreneur and a Manager

Entrepreneur Manager
An entrepreneur is involved with the start- A manager with running the business over
up process a long period of time
An entrepreneur assumes financial, A manager does not have to bear risks
material and psychological risks
An entrepreneur is driven by perception of A manager by the resources he currently
opportunity possesses
An entrepreneur initiates change A manager follows rules and procedures
An entrepreneur is his own boss A manager is a hired employee
An entrepreneur gets uncertain rewards A manager gets fixed rewards and salary

Difference Between a Trader and an Entrepreneur

TRADER ENTREPRENEUR

A trader is not always an entrepreneur An entrepreneur also a trader

Involve in buying and selling Involve in creating new product

Always work out to gain profit Besides profit, also considered about
satisfaction and successful
 Not interested in new technology evolvement Always alert and follow any new changes and
and new changes technologies

Selling common stuff Introduce new products

Competition is a common challenge Competition is a challenge that needs further

details

Focus on daily matter Farsighted and try to improve in the future

Short term profit oriented Long term profit oriented

o The word “entrepreneur” is derived from the French verb enterprendre, which means ‘to
undertake’.

o Entrepreneurship involves decision making, innovation, implementation, forecasting of the

future, independency, and success first and this is how entrepreneurship developed.

o There are jobs that will hone your entrepreneurial skills while you learn the ins and outs of
running a business.

o There are differences between an entrepreneur, a manager, and a trader.

Entrepreneurship is a dynamic process of vision, change, and creation. It requires an

application of energy and passion towards the creation and implementation of new ideas and
creative solutions. Essential ingredients include the willingness to take calculated risks- in terms
of time, equity, or career; the ability to formulate an effective venture team; the creative skill to
marshall needed resources; the fundamental skills of building a solid business plan, and finally,
the vision to recognize opportunity where others see chaos, contradiction, and confusion.
Below is the idiosyncrasies of wage employment and entrepreneurship:
 Wage Employment Entrepreneurship

Work for Others Own Boss

Follow Instructions Make own plans
Routine Job Creative activity
Earning is fixed, Can be negative
never negative sometimes, generally surplus
Does not create wealth Creates Wealth,
contributes to GDP
Can choose from- Can choose from-
Government service Industry
Public Sector Trade or
Private Sector Service Enterprise

A. Write T if the statement is correct and if not, write the correct word or group of words to
make statement true.
__________ 1. A trader is not always an entrepreneur.
__________ 2. A manager is driven by perception of opportunity.
__________ 3. An entrepreneur assumes financial, material and psychological risks.
__________ 4. A manager with running the business over a long period of time.
__________ 5. Working in wage employment can build the sales, marketing, finance,
communications, self-motivation, and other skills successful entrepreneurs need.
__________ 6. Trader always alert and follow any new changes and technologies.
__________ 7. An entrepreneur is not interested in new technology evolvement and new
changes.
__________ 8. The word “entrepreneur” is derived from the French verb enterprendre,
which means ‘to undertake’.
__________ 9. Every business needs technology, and the work you do for your employer
will enhance your skill set and give you transferable skills to use to start and grow your
own business.
 __________ 10. Successful wage employment work on a product through research,
development, engineering, manufacturing, going live, and distribution.

B. Match column A and B. Write the letter of the corresponding answer.

Column A Column B
_____ 1. It is the process of actions of an a. Entrepreneur
entrepreneur who is a person always in search b. Design
of something new and exploits such ideas into c. Wage Employment
gainful opportunities by accepting the risk and d. Manager
uncertainty with the enterprise. e. Trader
_____ 2. It is a person responsible for setting f. Consultant
up a business or an enterprise. g. Business Development
_____ 3. Someone who run the business over h. Real Estate
a long period of time. i. Entrepreneurship
_____ 4. It is a skill that will help you create j. Product Manager
your own product or service and get it ready
to launch.
_____ 5. The ability to grow and manage a
business, which will be invaluable when you’re
working on your own.
_____ 6. Someone who is involve in buying
and selling common stuffs.
_____ 7. Someone who work for other people
and has a fixed earning.
_____ 8. Someone who work on a product through
research, development, engineering, manufacturing,
going live, and distribution.
_____ 9. Working in _____ can build the sales,
marketing, finance, communications,
self-motivation, and other skills successful
entrepreneurs need.
_____ 10. Working for a major ____ firm will
give you experience in a variety of industries and
types of companies.
C. Explain the concept of Entrepreneurship below.

Enrichment

A. Compare and contrast an Entrepreneur and a Manager using a Venn Diagram

B. Compare and Contrast a Trader and an Entrepreneur using a Venn Diagram.

C. Write possible jobs under the following entrepreneurial skills.

Jobs

1.
Entrepreneurial Skills
2.
1. advertising, marketing and
public relations 3.
2. business development
3. design 4.
4. e-commerce and social
5.
media
5. management 6.
6. software, web, or app
developer 7.
7. real estate/account
8.
executive
8. sales manager 9.
9. consultant
10. product manager 10.
 Answer Key

Assessment
A. 1. T 6. Entrepreneur
2. Entrepreneur 7. Trader
3. T 8. T
4. T 9. T
5. Real Estate 10. Product Manager

B. 1. d 6. e
2. i 7. C
3. a 8. J
4. b 9. H
5. g 10. f
C. Answers may vary

Enrichment
A, B, and C answers may vary

References

[Link]
types-and-functions-of-entrepreneurship/5228
[Link]
 LESSON – RECOGNIZE A POTENTIAL MARKET
1st Quarter – 2nd Week RECOGNIZE A POTENTIAL Week 3 TLE_ICTAN11/12PC-Ia-1
MARKET

Expected Outcomes:

1. Define Potential Market.

2. Recognize the characteristics of a potential market.
3. Assess potential markets in the locality.

A potential market is the part of the market you can capture in the future. Your potential market
includes the demographic groups that are not currently your customers but could become customers in
the future.

The key characteristics of a potential market are: large size, high profitability, accessibility and limited
competition.

WHAT'S NEW?

DEFINITION OF TERMS AND CONCEPTS

A potential market is the part of the market you can capture in the future. Your potential market
includes the demographic groups that are not currently your customers but could become customers in
the future.

Product is something (such as a service) that is marketed or sold as a commodity.

Demographics is the study of a population based on factors such as age, race, and sex.

Competitive is eager to do better than others.

Profitability is the fact that something produces or is likely to produce a profit.

Accessibility is the fact of being able to be reached or obtained easily.

Locality - a particular area or neighbourhood.

 WHAT IS IT Detailed discussion of the lesson

A Potential Market is the part of the market you can capture in the future. Your potential market
includes the demographic groups that are not currently your customers but could become customers in
the future.

CHARACTERISTICS OF A POTENTIAL MARKET

When examining the key characteristics of a high-potential target market, there are numerous factors to
consider. There are some common elements that would make a target market attractive for anyone, as
well as specific attributes that make a target market more lucrative to you and your small business’s
unique selling proposition. Before entering a new market, it's important to analyze key characteristics in
order to gauge your chances for success with the market.

Competitive Advantage

If you have relevant experience and skills within the targeted industry, then you have a competitive
advantage when entering the target market. For example, if you've worked in the retail industry for the
last 15 years, then retailers would be a high-potential target market for you. Refine your target market
even further. If your professional experience has been with gourmet food retailers, then it makes sense
to target that specific segment of the market.

Size and Profitability

The target market's profitability must be large enough to be worth pursuing. Research how many people
are in the target market, as well as the potential revenue and net profit after expenses. Estimate your
projected revenues from industry research reports through industry associations, research companies,
or organizations.

Accessibility

A high-potential target market must be identifiable and accessible through marketing channels. For
example, if the target market is located in a different country with political conditions that make it more
difficult to reach through conventional marketing channels, then it may not be a practical target market,
since it cannot be easily reached and promoted to. In some cases, a specific target market may be
expensive to reach, and therefore may not be a good choice for the small-business owner on a budget.
However, if you have a clear, specific and accessible group that you can reach within your means, then
the target market has higher potential.

Competition

A lucrative target market ideally would have limited or manageable competition. Research the needs of
the target market, the stakeholders, and how well the competition meets the market’s needs. If the
potential target market needs are not sufficiently met, then there may be an opportunity to capture a
large share of the market. However, if there are many entrenched competitors that fully satisfy the
target market's needs, then there may be less potential with the market.
 WHAT'S MORE

What does your locality mean to your business offering?

Assess the potential value of your locality to your business. Here’s a handy checklist to help you
calculate the potential in your business planning:

1. Could you make more of your location in the creation, promotion and selling of your products
and services?
2. If you get to grips with the demographics of your locality, could you tweak your product/service
offering to attract greater sales?
3. What volume of relevant consumers or business decision-makers are in say a 10mile radius of
where you are now?
4. Would the fact that you’re only a 20-minute drive away appeal to them?
5. If you sourced quality local ingredients/expertise in your products/services, could you attract
greater interest or even be able to charge a slightly higher price?
6. Could you attract a bigger national market because of the local ingredients/elements in your
offering?

WHAT I HAVE LEARNED

A Potential Market is the part of the market you can capture in the future. Your potential market
includes the demographic groups that are not currently your customers but could become customers in
the future. The key characteristics of a potential market are: large size, high profitability, accessibility
and limited competition. It is however important to assess the potential markets in the locality.

WHAT I CAN DO

List down as many possible potential markets up to at least 50. Then trim down possible potential
markets as that will conform to the characteristics of potential markets and checklist.

ASSESSMENT

Individual Work

Submit a written report of your local potential markets assessment.

Quiz

I. Modified True or False. Write True if the statement is TRUE, if incorrect write the correct
word/s to make the statement true.

________ 1. Potential market includes the demographic groups that are not currently your customers
but could become customers in the future.
________ 2. Experience and skills within the targeted industry can be a competitive advantage when
entering the target market.
________ 3. The target market's profitability must be small enough to be worth pursuing.
________ 4. A low-potential target market must be identifiable and accessible through marketing
channels.
________ 5. A lucrative target market ideally would have limited or manageable competition.

II. IDENTIFICATION

________ 1. It is something (such as a service) that is marketed or sold as a commodity.

_______ 2. It is the study of a population based on factors such as age, race, and sex.
________3. It is the fact that something produces or is likely to produce a profit.
________ 4. It is the fact of being able to be reached or obtained easily.
________ 5. It is a particular area or neighbourhood.

ADDITIONAL ACTIVITIES

From your assessment report, prepare business mapping along your locality and list down actual local
competitors.

ANSWER KEY

Written Report - Rubrics

Modified True or False

1. True
2. True
3. Large
4. High
5. True
Identification

1. Product
2. Demographics
3. Profitability
4. Accessibility
5. Locality

REFERENCES- websites

[Link]
[Link]#:~:text=Market%20potential%20is%20the%20entire,%245%2C000%2C000%20in%20sales%20
each%20year.

[Link]
[Link]#:~:text=The%20key%20characteristics%20of%20a%20lucrative%20market%20are%3A%20la
rge%20size,the%20size%2C%20revenue%20and%20competition.

[Link]

[Link]

[Link]
 Lesson 4: Entrepreneurship
1st QUARTER: WEEK 4 Entrepreneurship TLE_ICTAN11/12PC-Ia-1

Expected Learning Outcome/s:

5. Identify the ways to analyse the market need.
6. Enumerate the 6 steps in the marketing analysis process.
7. Explore the ways on how to gather data through the different research approaches for
market need analysis.
8. Devise a survey questionnaire for a product and service for market need data
gathering and analysis.

What’s In?

"Market needs" is a marketing concept that relates to the functional or emotional needs or
desires of a target market.
Whether you are starting a new business or launching a new product, conducting a
marketing analysis is the first step in determining if there is a need or audience for your
idea. Knowing the market's needs and how it is currently serviced provides you with key
information that is essential in developing your product/service and marketing plan.
Conducting a market analysis will help you:
Prepare to enter a new market
Launch a new product/service
Start a new business

What’s New?

"Market needs" is a marketing concept that relates to the functional or emotional needs or desires
of a target market. Generally, a successful company identifies when a segment of customers is
not effectively served by existing providers and develops and promotes products or services to
match.
Market Needs Analysis is the step to investigate a concept for the product.
The marketing analysis process can be broken down into six steps:

1. Defining the problem

2. Analysis of the situation
3. Obtaining data that is specific to the problem
4. Analysis and interpreting the data
5. Fostering ideas and problem solving
6. Designing a plan

So, why should you embark on the market analysis process? The primary reasons are:

• To determine if there is a market for your products or services

• To establish the need for developing a marketing plan
• To ascertain market information that will assist in the sale of your product or service

Market Analysis Questionnaire

To begin the market analysis process, answer the following questions. If you cannot answer
every question, focus on finding the answers even if it means consulting others.

These questions will enhance your understanding and knowledge of your target market and
industry, and ultimately determine: Is there a need for my product or service?

1. What defined market am I trying to reach?

2. What specific companies are servicing this market?
a. Are they successful?
b. Are there other companies servicing this market with a similar product?
c. Are they successful?
d. What is their market share?
3. Is the market saturated or wide open? If so, why?
4. What is the size of the market?
a. Is it a growing market?
b. Is the industry stable, volatile, growing or trendy?
5. How can I reach this market?
a. How do my competitors reach the market?
6. What are the business models of my competitors?
7. What do customers expect from this type of product or service?
8. What core competencies must the product or service have?
9. What are customers willing to pay for this type of product or service?
10. What is my competitive advantage?

THE COMPLETE PROCESS

A. Defining the Problem

Defining the problem is crucial to conducting a successful marketing analysis. This may require
a great deal of time but it is well worth the time and energy expended. Defining the objectives is
tantamount to a successful marketing campaign. Many individuals waste valuable time
performing good research on the wrong problem.

The following questions will assist you in defining the problem:

Are we trying to market our entire product or service line? Or, are we trying to hone in on a new
product or a new service?
What specific marketing strategies have we utilized in the past two years?
How has each strategy affected sales?
What strategies are we currently using?
How do our competitors market their product?
How much money is allocated to marketing?
When making a sale, do we survey our customers to determine a referral source?
Do we thank our referral source?
Why would someone choose our product?
What differentiates our product from our competitors' products?
Why do people choose our competitors' products or services?
Do we need to enhance our current product or service?
Who are our customers?
Are they from a specific region?
How do we attract new customers?
How do we increase sales from current customers?

Many companies fail to understand the nature of the problem before trying to solve problems
related to sales. A classic example occurred in the soft drink industry when Coke and Pepsi, the
two top soft drink rivals increased the intensity of marketing efforts to battle for higher sales. At
the same time, Dr Pepper's revenues began to decline, a problem that was attributed to a weak
promotional campaign. Subsequently, the "Be a Pepper" slogan was instituted. Although the ads
were a hit, revenues continued to decrease. The marketing managers had to reanalyze their
problem.

Focused research revealed that the target population for Dr Pepper differed from Coke and Pepsi.
It was found that Dr Pepper's target market believe life should be lived in accordance with one's
own set of personal values and not based on the expectations of others. Cola drinkers, on the
other hand, try to win the approval of others. Despite the catchy slogan, Dr Pepper's marketers
turned away prospects with a campaign that invited them to be part of a large group of
"Peppers."

The soft drink industry clearly exemplifies the importance of defining the problem. It is
important not to confuse the symptom with the problem. If a company is having trouble selling a
certain product, it doesn't mean that there isn't a need. The problem may be distribution and/or
pricing. Mistaking symptoms for problems will lead to misguided research and serious mistakes.

B. Analysis of the Situation

An analysis of the situation is an informal survey of what information is available in the problem
area. The analysis will help define the problem and ascertain the need for additional information.
This process entails informal talks with informed people. Informed individuals can be others in
the company or outsiders with knowledge about the industry or product. In some instances,
customers are contacted to provide information.

The analysis should focus on both primary and secondary research. Primary research is a
research that is proactively created for a specific purpose. Primary research may include focus
groups, qualitative surveys and phone interviews. This is information you collect yourself.

In contrast, secondary research is research that has already been conducted for other purposes.
From it valuable information can be gleaned. Secondary research can be found in libraries,
online, through periodicals, books, etc. The easiest and most efficient way of accessing this type
of data is on the Internet.

C. Obtaining Data Specific to the Problem

The next step requires gathering primary research and performing a formal research project.
Many approaches can be used to collect primary data. The purpose is for the research to identify
what customers think about some topic or behavior patterns. Research can be done in person or
through a survey. Questioning can be qualitative or quantitative. Another research option is to
use observation of customers and their purchases or utilization of a product or service.

Qualitative research utilizes open-ended questions to obtain in-depth answers. Closed-ended

questions requiring yes or no answers are avoided. The idea is to have people share their
thoughts on a topic without giving them extensive directions or guidelines.
Examples of qualitative research questions include:
"What do you think about when you decide on a place to shop for your kids' clothes?"
The consumers are free to answer as they chose: one might talk about convenient location,
another about service, and others about the type of designer clothing available. Depth is the
important factor in this type of research. Follow-up questions can be asked of each individual to
better understand their response and shopping habits. The qualitative approach requires the
researcher to exercise judgment in summarizing all the information. Depth is the key.
Qualitative research doesn't have to be question-oriented. Focus group interviews are the most
widely used format for qualitative marketing research. This involves the interviewing of six to 10
people in an informal setting. Open-ended questions are posed to gather in-depth information on
the subject matter. In a group setting the researcher looks for group interaction to stimulate
thinking.
A skilled focus group leader or facilitator can learn a lot from this approach. The facilitator's role
is to establish guidelines for the group interaction, to talk as little as possible, to keep the group
focused, and to ask simple open-ended questions. A typical focus group session lasts an hour.
The sessions can be videotaped for different managers to view. Conclusions reached vary
depending on the skill level of the individual. Although qualitative research can be objective, it
requires extensive training and experience. Qualitative research may provide ideas or
hypotheses, but other approaches based on larger sample size and objective measures are needed
to test the hypothesis.
Researchers often use qualitative research to prepare for quantitative research. Quantitative
research differs from qualitative in that it gathers parametric statistical information, i.e.,
information with a number to it. Sample sizes are generally larger and more representative of
the market. From the statistics or data generated, conclusions can be drawn. Survey research is
usually quantitative in nature. It seeks structured responses, which can be summarized in
numbers, like percentages, averages or other usable statistics. An example of quantitative
research is what percentage of the consumers shopping in grocery stores purchase coffee. An
average score can be calculated.
Survey questionnaires often provide fixed responses to questions to simplify the reply. This
multiple choice format makes it faster and easier for the respondent. Simple fill-in-the-number,
circle-the-range or exact answer questions are also widely used. A market researcher might ask
how many suppliers you use for household appliances or what is your salary range (multiple
choices given with ranges of salaries). Fixed responses are computer-friendly, which is how most
surveys are analyzed.
A common approach to objectively measuring consumers' attitudes and opinions is to have
respondents indicate how much they agree or disagree with a questionnaire statement. Another
approach is to have respondents rate a product using a rating scale, called a Likert scale. A
number is attached to the product value, for example:
Excellent= 4
Good = 3
Fair = 2
Poor = 1
A researcher interested in what a target consumer population thinks about a particular frozen
dinner might use the following example:

A. Please check your level of agreement with each of the following

statements.

Strongly Strongly
Agree Agree Uncertain Disagree Disagree

1. I add extra seasoning when I

prepare a frozen dinner.
 2. A frozen dinner is more
expensive than eating at a
fast food restaurant.

B. Please rate how important each of the following is to you in selecting a

brand of frozen dinner.

No Very
Importance Important

1. Price per serving

2. Amount of meat

3. Amount of vegetables

4. Cooking time

C. Please check the rating which best describes your feelings about the last
frozen dinner you prepared.

Poor Fair Good Excellent

1. Price per serving

2. Amount of meat

3. Amount of vegetables

4. Cooking time

Decisions about what specific questions to ask and how to ask them usually depends on how the
respondents will be contacted: by mail, in person or by phone.
A mail questionnaire is useful when extensive questioning is desired. This type of format allows
the respondents to complete the questions at their convenience.
Telephone surveys are growing in number, and they can be fast and effective. In this format
market researchers can ascertain answers to simple questions quickly.
Personal interview surveys can be effective for maintaining a respondent's attention. In this
format the interviewer is present in order to explain difficult directions hopefully leading to
better responses.
Observation can be used for data collection. With observation, researchers try to learn what the
subject does naturally. Observations should not influence the consumer's behavior. Observation
methods are common in advertising research.
D. Data Analysis and Interpretation
Data analysis and interpretation is critical in analyzing the market. What does this information
mean? Can one use the data in a constructive way to define the problem and then establish a
plan? In quantitative research, this step most often involves statistics. In the marketplace one can
find many statistical packages (computer-based) to analyze the data.
E. Fostering Ideas and Problem Solving
In this step, the research results are used to make marketing decisions. The findings should be
applied in marketing planning. If the research doesn't provide the information necessary to make
these decisions, the company, whether small or large, has wasted its time, money and manpower
on unnecessary data. The final step must be anticipated throughout the entire process.
F. Marketing Plan
This six-step process of market analysis is critical in designing a marketing plan that is tailored
to your specific product or service.

o There is a need to analyse "Market needs".

o The 6 steps in the marketing analysis process.
o Explored the ways on how to gather data for market analysis through different research
approaches-qualitative and quantitative.

1. Search at least 10 samples of survey questionnaire for any product or services.

2. Devise your own survey questionnaires for a particular product and service in mind.
I. Arrange the steps in marketing analysis according to its chronological order.
Write number 1– 6 to correspond to its order.
__6____A. Designing a plan
__1____B. Defining the problem
___2___C. Analysis of the situation
___4___D. Analysis and interpreting the data
___5___E. Fostering ideas and problem solving
___3___F. Obtaining data that is specific to the problem
II. Modified True or False. Write TRUE is the statement is true and if incorrect write the
correct word/s to make the statement true.

_____ 1. Qualitative research utilizes close-ended questions to obtain in-depth answers.

_____ 2. Focus group interviews are the most widely used format for quantitative marketing
research.
_____ 3. Survey questionnaires often provide fixed responses to questions to simplify the reply.
_____ 4. Likert scale is common approach to objectively measuring consumers' attitudes and
opinions is to have respondents indicate how much they agree or disagree with a
questionnaire statement.
_____ 5. Secondary research may include focus groups, qualitative surveys and phone
interviews.
_____ [Link] surveys are growing in number, and they can be fast and effective.
_____ 7. Personal interview surveys formats the interviewer to be present in order to explain
difficult directions hopefully leading to better responses.
_____ 8. Observation is a type can be used for data collection.
_____ 9. Market needs is a marketing concept that relates to the functional or emotional needs or
desires of a target market.
_____10.Market Needs Analysis is the step to investigate a concept for the product.

Enrichment

Additional tasks:
1. Search for at least 3 samples of primary research approaches on focus groups guide
questions and qualitative surveys that can be use for your product.
2. With those samples as your guide, prepare 1 focus groups guide questions and 1
qualitative survey for your market need analysis.

Answer Key
I.
___6___ A. Designing a plan
___1___ B. Defining the problem
___2___ C. Analysis of the situation
___4___ D. Analysis and interpreting the data
___5___ E. Fostering ideas and problem solving
___3____F. Obtaining data that is specific to the problem
II.
1. Open-ended
2. Qualitative
3. True
4. True
5. Primary
6. True
7. True
8. True
9. True
10. True

References

Websites
[Link]
[Link]
[Link]#:~:text=%22Marketplace%20needs%22%20is%20a%20marketing,products%20or%
20services%20to%20match.
Books
W.D. Bygrave, "The Portable MBA in Entrepreneurship" (John Wiley & Sons, 1994)
E.J. McCarthy, W.D. Perreault, "Basic Marketing: A Managerial Approach" (Irwin, 1990)