Classroom Rules

School Year 2022 -2023

 Quarter 3
Entrepreneurship
Module 3:
Lesson 4 The Potential
Market and the Market
Need
OBJECTIVE
.  recognize
a
potential market
and analyze the
market need.
 PRE-TEST
Picture Analysis
DIRECTIONS: To check your prior knowledge about the topic,
please analyze the pictures shown below and list down at least
three (3) potential markets that entrepreneurs should consider
during this COVID -19 pandemic and indicate their needs. Write
your answer in the space provided.
 
Potential Market Market Need
1. 1.
2. 2.
3. 3.
PICTURE ANALYSIS
 REVIEW OF
PAST LESSON
Here starts the
lesson!
 LOOKING BACK TO OUR LESSON

Competencies in Entrepreneurship.

● Competencies such as risk seeking,

assertiveness and vision are considered
typical of a successful entrepreneur
(www.ideasforleaders.com).

You can delete this slide when you’re done editing the presentation.
 LOOKING BACK TO YOUR LESSON
● Specific techniques and habits must
be practiced and developed by all
would-be entrepreneurs. Aside from
business competencies, entrepreneurs
need interpersonal and self-leadership
skills too; however, these are often
overlooked. Entrepreneurial behavior’
can be learned and developed
(www.ideasforleaders.com).
 LOOKING BACK TO YOUR LESSON

● If you’re 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 (Doyle, A., 2020).
You can delete this slide when you’re done editing the presentation.
 Please answer the questions below. Good Luck!

Multiple Choice. Write the letter of the correct

answer that best complete the sentence in the
space provided.
1.All are core competencies in Entrepreneurship,
except:
A. basic bookkeeping/ accounting skills
B. communication skills
C. building relations with customer
D. building competitive advantage
2. Which of the following is not a business
competency? This competency covers the
outcomes required to build, _____ and grow a
micro/small-scale enterprise - like developing
and maintaining small-scale business,
establish customer base, and manage
business finances.
A. Establish customer service
B. Manage finances
C. Preparing business letters
D. Monitoring operations
3. Which is not a goal of entrepreneurial
competency?

A. Expanding the enterprise

B. Expanding markets and clientele
C. Developing individuals and teams
D. Enhancing one’s business skill
4. All are important aspects of
Entrepreneurship as a course, except:
A. Discussion on economic issues and
concerns.
B. Explanation of key concepts of
competencies in Entrepreneurship.
C. Discussion on the relevance of the
course.
D. Exploration of career opportunities.
5. Which of the following does not cover a high-

performing enterprise?
A. Build and develop the enterprise to
be more competitive within a
changing business environment.
B. Creating gaps among employees.
C. Responding to consumers’ demand.
D. Maintaining product quality and
accessibility.
1. B
2. C
3. D
4. A
5. B
 LESSON
PROPER (4AS)
Here starts the
lesson!
 BRIEF INTRODUCTION

BRIEF INTRODUCTION

Potential Market
1. Potential market
is the part of the total
population that has
shown some level of
interest in buying a
particular product or
service.
Potential market is
also called Total
addressable market
(TAM) (MBA Skool
Team, 2018).
2. A potential market
is the part of the market
you can capture in the
future. It includes the
demographic groups
that are not currently
your customers but
could become customers
in the future (Lake, L,
2019).
3.Market potential
is the total demand
for a product in a
given business
environment
(Bhasin, H., 2018).
The Importance of Potential
Markets (Lake, L., 2019)
● Potential markets are an
important part of a business's
future growth.
● Ensure the future of your
business by identifying new
customers.
● Think proactively about ways
for your business to grow and
change.
The Importance of Potential
Markets (Lake, L., 2019)

● Show the potential of your

business to investors or
collaborators.
● Increase your revenue.
● Create a plan B that will
weather changes in the
economy or market.
How to Identify Your Potential Markets (Lake, L.,
2019)
● Consider every target demographic that
you currently sell to, as well as those
you have not yet targeted. Identify what
they have in common with each other,
new milestones that they will encounter
in their lives that will impact their
buying patterns, and where they overlap
or diverge from your current customers.
These are some questions to identify both new ways to
market your current product or services, as well as
new products and services that you can begin selling.
•What other products do my customers need now?
•What related products will they need in the future?
•Who else could make use of the products I am selling

now?
•What demographic information does that new group
have in common with my current customers?
•What demographic information does that new group
have in common with each other?
For example, a business that makes face
masks and PPEs could identify potential
markets such as:

 Hospitals and other health related

industries whose employees are prone to
COVID -19 virus and other viruses.
 Business industries and other
organizations who want to ensure the
health condition of their employees.
 Employees and workers who need to report
to work to earn income.
 Households who needs to go out for their
necessities.

Note: Depending on the size and age of your

company, as well as your industry, you may
have a clear picture of the potential markets
that are available.
Reaching Your Potential Market (Lake, L.,
2019)
Once you've identified and chosen a potential
market to begin targeting, you will need new
marketing strategies in place to communicate
with them. Use this profile to identify:
 The demographic information that people in
a group have in common.
 The best forms of media to reach them.
 How they prefer to shop and make
purchases.
 The concerns, struggles, or problems
that you can help them overcome.
 What values matter to them, both in
everyday life and when shopping.
 The language that resonates with
them.
The figure below depicts what is a potential
market with respect to the total population
and how it can be converted to a penetrated
market:
Available Market

 Prospects who are

willing and capable
(have sufficient
resources) buyers, and have access to a
particular market or service
(www.businessdictionary.com).
Available Market

 Defined as the number

of people who are both
willing and capable of
buying a particular product or service in a
particular market (MBA Skool Team, 2020).
Target Market
 Refers to a group of
potential costumers to
whom a company wants
to sell its products and
services. Target market
are generally categorized
by age, location, income
and lifestyle.
Penetrated Market
 A set of customers or clients
who are already using a
particular product or service. A
penetrated market means that
the potential users of a product
or service are aware of it, and in
many cases are active
consumers of it.
 (www.businessdictionary.com).
The size of a potential market helps a company
understand the level of investment it should make further in
the market, while taking into consideration other factors. If
the potential market is very small, it means there is a very
small fraction of the total population showing any interest in
the product or category. This means that it is better that the
company doesn’t invest further in the product or category
because people won’t buy it. If the size of the potential
market is large, it means that there is a huge fraction of
the total population which is showing interest in the
product, so further investment can be made on the product
development or modification, marketing, promotions etc.
The size of the potential market gives an estimate of what
all a company should do and how much it should invest
(MBA Skool Team, 2018).
The Market Need
1. Need.
 A motivating force that compels action for
its satisfaction. Needs range from basic
survival needs (common to all human
beings) satisfied by necessities, to
cultural, intellectual, and social needs
(varying from place to place and age group
to age group) satisfied by necessaries
(www.businessdictionary.com).
 A driver of human action which
marketers try to identify, emphasize,
and satisfy, and around which
promotional efforts are organized.
(www.businessdictionary.com).
2. Market
 A Market is a place where two parties can
gather to facilitate the exchange of goods
and services. The parties involved are
usually buyers and sellers. The market
may be physical like a retail outlet, where
people meet face-to-face, or virtual like an
online market, where there is no direct
physical contact between buyers and
sellers (Kenton, W. & Boyle, M., 2020).
 A market does not refer to a
particular place but it refers to a
market for a commodity or
commodities. It refers to an
arrangement whereby buyers and
sellers come in close contact with
each other directly or indirectly to
sell and buy goods (Shaikh, S.,
retrieved 2020).
Your market consists of (Stull, C., Myers, P.& Scott
D.M. (2008) as cited in: https://learn.marsdd.com/):
 Existing customers: People who have already
purchased your product.
 Prospects: People who have not yet purchased
your product but are considering it.
 Target market users: People in your target
market who are not currently looking for a
solution.
Define the Market Need for Your New
Business

Why is it important to clearly define

market needs?
The market now demands that your business
align to their needs. In order to properly
align your marketing efforts ‒ and your
content, in particular ‒ to what buyers need,
you have to have a clear understanding of
the many intricacies, pains and pressures
within your market. To achieve such
alignment, the ability to define market
patterns, needs, interests, preferences, etc.
for a comprehensive view of the buying
process is critical (www.aberdeen.com).
Below are ways to define your market
(Lancaster SCORE (2010):
• Consider whether the business offers a new
solution to an old problem or complements
an emerging trend.
• Have a clear picture of your target market.
• Determine the benefits that your product or
service offers.
• Examine industry data that can confirm
whether there is a sustained, growing
demand for your product or service.
•Identify the percentage of market share that
it is realistic for you to capture. The more
competition you have, the lower the
margins will be.
•Consider how realistic your pricing is. How
can you present your product or service to
potential customers so that it appears to be
a good value, while still affording you a
healthy profit?
 ACTIVITY
Activity 1. Read and analyze the statements
below about “Market”. Determine whether the
statement is TRUE OR FALSE. Write TRUE if
the statement is correct and write FALSE if
otherwise.
1. A market is any place where two or
more parties can meet to engage in an
economic transaction—and should only
involve legal tender.
 ACTIVITY

2. Market includes retail stores and other

similar businesses that sell individual

items to wholesale markets selling goods
to other distributors but may not be
virtual.
3. Market refers to the whole area of
operation of demand and supply.
 ACTIVITY

4. A market signifies any arrangement in

which the sale and purchase of goods take
place.

5. The market establishes the prices for goods

and other services.
Activity 2.
Read and analyze the given situations below.
Identify whether this refers to existing
customer, prospects, or target market users.
Write your answer in the space provided.
1. Students need 6. Arlene, a student of
to buy a tablet/ a public school,
laptop for needs mobile data in
school order to comply with
requirements. the requirements in
school.
2. Ana used to buy 7. Hospitals need
shampoo.
facemasks and PPEs.
3. Households 8. Mike, a sari-sari
living in a store owner, wants to
remote area. go online selling.
4. Martha, a 9. Jeep drivers need to
call center modify
agent, needs a their jeeps for public
Wi-Fi. transportation.
5. Karlo, a 10. Ella needs to buy
factory worker, her vitamin C to boost
needs her immune system.
transportation.
Activity 3. MAKE MEANING- INTERNET

DIRECTIONS: ASSSISTED ACTIVITYof the following

Give the meaning
word/phrase in each item. You may use the
internet to define the given word/phrase. Write
your answer in the space provided.
1. Customer vs. consumer
__________________________________
2. Demographic group
__________________________________
Activity 3. MAKE MEANING- INTERNET
ASSSISTED ACTIVITY
3. Market share
____________________________________
4. Market size
____________________________________
5. Marketing strategies
____________________________________
 REMEMBER THIS
 Potential market is the part of the total
population that has shown some level of
interest in buying a particular product or
service. Potential market is also called Total
addressable market (TAM) (MBA Skool
Team, 2018).
 REMEMBER THIS
 Available Market are prospects who are
willing and capable (have sufficient resources)
buyers, and have access to a particular
market or service (
www.businessdictionary.com).
 Target Market refers to a group of potential
customers to whom a company wants to sell
its products and services. Target markets are
generally categorized by age, location,
income, and lifestyle (Kenton, W., 2019).
 REMEMBER THIS
 Penetrated Market is a set of customers or
clients who are already using a particular
product or service
(www.businessdictionary.com).
 Need is a motivating force that compels action
for its satisfaction. Needs range from basic
survival needs (common to all human beings)
satisfied by necessities, to cultural, intellectual,
and social needs (varying from place to place
and age group to age group) satisfied by
necessaries
 REMEMBER THIS
 A Market is a place where two parties can
gather to facilitate the exchange of goods and
services (Kenton, W. & Boyle, M., 2020).
 Existing customers are people who have
already purchased your product.
 Prospects are people who have not yet
purchased your product but are considering it.
 Target market users are people in your target
market who are not currently looking for a
solution.
 POST - TEST
Identification. Read and analyze the
statements below and identify whether this
refers to potential market, available
market, target market, or penetrated
market. Write your answer in ½ sheet of
paper
1. Active consumers of a product.
 POST - TEST
2. People who are both willing and capable of
buying a particular product or service in a
particular market.
3. It is the part of the total population that has
shown some level of interest in buying a particular
product or service.
4. It includes specific customers to whom a
company directs its marketing efforts.
5. Customers or clients who are already using a
particular product or service.
 MATCHING TYPE.
Match the definitions in Column A with the
word/phrase in Column B. Write your answer in
the space provided.
Column A Column B
1. It is a company’s marketing goals A. Market
and objectives combined into a
single comprehensive plan.
2. Refers to a person or organization B. Target
that uses a commodity or service. Market
 MATCHING TYPE.
Column A Column B
3. This is an area or arena in which C. Potential
commercial dealings are conducted. Market
4. This is used to give a general idea of D. Need
the size of a company in relation to
its market and its competitors.
5. This is one part of the total market E. Demographic
for a good or service. group
6. It is also called Total addressable F. Market
market (TAM). Strategy
 Column A Column B
7. A person or business that purchases a G. Market size
commodity or service. Market size
8. Circumstances in which something is H. Customers
necessary, or that require some course
of action; necessity.
9. The study of the characteristics of I. Consumers
human populations, such as size,
growth, density, distribution, and vital
statistics.

10. The number of buyers and sellers in a J. Market share

particular market.
 REFLECTIVE LEARNING
If you’re thinking about starting a business, most
likely you have dreamed of one that involves your
interests. But, what does the market need or want?
Do you know who is buying what and how much, or
how, where and why they are buying those goods or
services already?
Determining the marketability of your start-up
business is typically done in the context of
creating a business plan and performing an
analysis of your competition. It requires research
into areas of marketability.
 REFLECTIVE LEARNING

Please write your idea on the situation below.

As would-be Entrepreneur, you are tasked to
identify your dreamed business, one that
involves your interests. Indicate who are your
potential market, target market, available
market and/or penetrated market. Write your
answer in the space provided.
___________________________________________________
___________________________________________________
“If you dream big and put your dreams into
action you will indefinitely make mistakes. But
don’t be scared to make mistakes. Just be quick
to recognize them and learn from them as fast as
you can”.
TONY TAN CAKTIONG
CHAIRMAN, JOLLIBEE FOOD CORP.
STAY SAFE &. GOD BLESS EVERYONE.
