Module 2
Module 2
Module 2
Module 2
Environment and Market
Introduction
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Opportunities and threats exist in the external environment.
Opportunities relate to the market, new technologies, and the external factors
such as government policies, climate, and trends. Threats replace what the
competitors are doing. It also includes legal and other constraints.
To begin with, let’s find out the competencies that you will master as you
finish this module.
Objectives
Now that you have an idea about the things you will learn, take the first
challenge in this module – the pre-assessment.
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Pre-assessment
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8. It is creating names, symbol, or designs that identifies and
differentiates a product from the other products.
A. product naming C. branding
B. unique selling proposition D. tagline
9. It is a meaningful and unforgettable statement that captures the
essence of the brand.
A. product naming C. branding
B. unique selling proposition D. tagline
10. These are things that people cannot live without.
A. wants C. requirements
B. desires D. needs
Directions: Read and study the guide questions below. Use a separate
sheet of paper to write your answer.
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5. How can one effectively respond to the needs of the target customer?
After all the guide questions are answered and skills have been
mastered, share insights/ideas with your classmates. Discuss your insights,
personal knowledge, and relevant experiences on the topic to make it more
exciting and engaging.
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Reading Resources and Instructional Activities
After setting your own personal goals and targets in achieving the
objectives of this module, you will have the opportunity to read and learn more
about environment and market. You will also be given a chance to do practical
exercises and activities to deepen your understanding of the topic.
Know
Product Development
There are basic, yet vital questions that you can ask yourself about
product development. When you find acceptable answers to them, you may
now say that you are ready to develop a product and/or render services.
These questions include the following:
1. For whom are the product/services aimed at?
2. What benefit will the customers expect from product/service?
3. How will the product/service differ from the existing brand? From its
competitor?
In addition, needs and wants of the people within an area should also
be taken into big consideration. Everyone has his/her own needs and wants.
However, each person has different concepts of needs and wants. Needs in
business are the important things that an individual cannot live without in a
society. These include:
1. basic commodities for consumption,
2. clothing and other personal belongings,
3. shelter, sanitation and health, and
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4. education.
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Basic needs are essential to an individual to live with dignity and pride
in a community. These needs can obviously help you generate business ideas
and subsequently to product development.
Wants are desires, luxury and extravagance that signify wealth and
expensive way of living. Wants or desires are considered above all the basic
necessities of life. Some examples of wants or desires are: fashion
accessories, expensive shoes and clothes, travels, eating in an expensive
restaurant, watching movies, concerts, having luxurious cars, wearing
expensive jewelry and perfume, living in impressive homes, among others.
Needs and wants of people are the basic indicators of the kind of
business that you may engage in because it can serve as the measure of your
success. Some other points that might be considered in business undertakings
are the kind of people, their needs, wants, lifestyle, culture and tradition, and
their social orientation.
To summarize, product development entirely depends on the needs and
wants of the customers. Another important issue to deal with is the key
concepts of developing a product. The succeeding topic shall enlighten you
about the procedure in coming up with a product.
Concepts of Developing a Product
Concept development is a critical phase in the development of a product.
In this stage, the needs of the target market are identified, and competitive
products are reviewed before the product specifications are defined. The
product concept is selected along with an economic analysis to come up with
an outline of how a product is being developed. Figure 3 shows the stages of
concept development of a product.
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Identify Establish Generate Select a
Refine
Customer Target Product Product
Specifications
Needs Specifications Concepts Concept
Plan
Remaining
Analyze Development
Perform
Competitive Project
Economic
Products
Analysis
Concept
Development
Figure 3: Stages of Concept Development The
4. Generate product concepts: After having gone through with the previous
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processes, you may now develop a number of product
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concepts to illustrate the types of products or services that are technically
feasible and will best meet the requirements of the target specifications.
Finding Value
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Innovation
Innovation is the introduction of something new in your product or
service. This may be a new idea, a new method, or a new device. If you want
to increase your sales and profit, you must innovate. Some of the possible
innovations for your products are change of packaging, improvement of taste,
color, size, shape, and perhaps price. Some of the possible innovations in
providing services are application of new and improved methods, additional
featured services, and possibly freebies.
Here's how to discover your USP and how to use it to increase your sales and
profit:
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Discover customer’s genuine reasons for buying the product.
Information is very important in decision making. A competitive
entrepreneur always improve their products or services to provide
satisfaction and of course retention of customers. As your business
grows, you should always consider the process of asking your
customers important information and questions that you can use to
improve your product or service.
Process
Task 3: Interview
Directions: Select a successful entrepreneur or practitioner. Conduct an
interview using the set of questions below. Document the interview and present
it to the class. Use a separate sheet of paper.
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5. What were your preparations before you started the actual business?
2. Prepare a short narrative report about these topics and discuss it to the
class. You can highlight the aspect that intensifies your knowledge of
product development.
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Transfer
1. Identify
Customers Need
7. Prepare a 2. Target
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Development Plan Specifications
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Know
1. Examine existing goods and services. Are you satisfied with the product?
What do other people who use the product say about it? How can it be
improved? There are many ways of improving a product from the way it is
made to the way it is packed and sold. You can also improve the materials
used in crafting the product. In addition, you can introduce new ways of
using the product, making it more useful and adaptable to the customers’
many needs. When you are improving the product or enhancing it, you are
doing an innovation. You can also do an invention by introducing an entirely
new product to replace the old one.
2. Examine the present and future needs. Look and listen to what the
customers, institutions, and communities are missing in terms of goods and
services. Sometimes, these needs are already obvious and identified right
away. Other needs are not that obvious because they can only be identified
later on, in the event of certain development in the community. For example,
a province will have its electrification facility in the next six months. Only by
that time will the entrepreneur could think of electrically-
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powered or generated business such as photo copying, computer service,
digital printing, etc.
3. Examine how the needs are being satisfied. Needs for the products and
services are referred to as market demand. To satisfy these needs is to
supply the products and services that meet the demands of the market. The
term market refers to whoever will use or buy the products or services, and
these may be people or institutions such as other businesses,
establishments, organizations, or government agencies.
Businesses or industries in the locality also have needs for goods and
services. Their needs for raw materials, maintenance, and other services
such as selling and distribution are good sources of ideas for business.
A group of people in your neighborhood may have some special skills that
can be harnessed for business. For example, women in the Mountain
Province possess loom weaving skills that have been passed on from one
generation to another. Some communities set up weaving businesses to
produce blankets, decorative, and various souvenir items for sale to tourists
and lowlanders.
Business ideas can come from your own skills. The work and experience
you may have in agricultural arts, industrial arts, home economics, or ICT
classes will provide you with business opportunities to acquire the needed
skills which will earn you extra income should you decide to engage in
income-generating activities. With your skills, you may also tinker around
with various things in your spare time. Many products are invented this way.
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5. Read magazines, news articles, and other publications on new
products and techniques or advances in technology. You can pick up
new business ideas from magazines such as Newsweek, Reader’s Digest,
Business Magazines, “Go Negosyo”, Know About Business (KAB)
materials, and Small-Industry Journal. The Internet also serves as a library
where you may browse and surf on possible businesses. It will also guide
you on how to put the right product in the right place, at the right price, and
at the right time.
Once you have identified business opportunities, you will eventually see
that there are many possibilities available for you. It is very unlikely that you will
have enough resources to pursue all of them at once.
You have to select the most promising one among hundreds of ideas. It
will be good to do this in stages. In the first stage, you screen your ideas to
narrow them down to about few choices. In the next stage, trim down the
choices to two options. In the final stage, choose between the two and decide
which business idea is worth pursuing.
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Branding
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Process
Directions: In a separate sheet of paper or in your notebook list down all your
observations for your business idea. Categorize your observations according
to strengths, weakness, opportunities and treats. After carefully listing them
down, use the stated strategies to come up with a sound analysis, activities and
best business idea.
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Strength (S) Weaknesses (W)
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Opportunities (O) Threats (T)
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Strategies:
Analysis:
Activities:
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My Best Business Idea:
Transfer
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Logo
Tagline
Vicinity Map
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