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Entrepreneurship Quarter 2: Module 3
Entrepreneurship Quarter 2: Module 3
Entrepreneurship
Quarter 2: Module 3
Entrepreneurship
Grade 11/12: Quarter 2: Module 3
First Edition, 2020
Copyright © 2020
La Union Schools Division
Region I
All rights reserved. No part of this module may be reproduced in any form without
written permission from the copyright owners.
Management Team:
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Target
You need to understand your potential customers, what product features are
the most important for them, and exactly how they would end up using the
product.
This module shows you how to make sure your customers are interested in
your product before you spend time building your business.
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Jumpstart
Let us check how much you have already learned from the previous
lessons and how much you know about the topic in this module by answering the
pre-test on the next page.
Pre-test
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Activity 1
Directions: Choose one product that you can see in your house. Describe the
chosen product by answering the guide questions below:
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2.) How does the product or service distinguish itself from other products or
services already existing on the market?
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3. What three unique selling points are offered by your product or service?
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Discover
The key to creating products or services that fit into the sweet spot between
what you love to create and what your potential customers really need is to validate
the marketability of your product or service.
This may sound boring, but it is actually a part of the process that is very
useful in building trust with your customers and checking that your product or
service will be patronized.
There are so many ways to validate your product or service. This module
shows some ways to make sure that what you are creating is both what you will
really love, and is also something that your customers will love, pay for, and refer
to again and again.
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WHAT IS PRODUCT/SERVICE DESCRIPTION?
This process typically takes place early-on in the conception stage, before
any significant investment has been made in developing the product.
The key is that market validation research must include direct contact and
feedback from people in the product’s intended market.
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HOW TO VALIDATE A PRODUCT’S OR A SERVICE’S MARKETABILITY?
Research can be useful when you’re still in the ideation stage or searching
for a product to sell. Exploring the current market can also help you mitigate risk
and build confidence in your idea before investing too much time and money.
Evaluate the market for your product as it stands today to ensure there’s
enough demand to build a viable business. One way to make sure there is a healthy
market to sell to is to look closely at your direct competition. Find out what they
are doing and how it compares to what you are planning to do.
Remember not to get discouraged when you see competitors that have
already grown big businesses. The fact that they exist will give you a good sense of
whether what you are offering is unique or different than what’s currently in the
market, which can point you toward untapped opportunities or help you figure out
what to focus on going forward.
You can also check out your competition’s social media to see how engaged
their customers are with their posts and products. It’s a great way to check out
negative feedback about a product and see if you can find a way to improve.
The easiest starting place is to go to Google Trends. This is a free tool that
allows you to see how often people are searching for the product you’re selling.
Knowing where the market is going can help you make a more informed decision
and using Google Trends lets you see if you're dealing with a trending product that's
on the upswing, or it’s a stagnant product category. The last thing you want to do
is jump into a declining market.
Once you really start getting a sense of your customer base, it’s critical that
they have a way to communicate with and provide feedback to you. The quickest
and easiest way is to provide friends and family with your minimum viable product
(MVP) and then gather feedback using a free survey.
What is Crowd-funding?
Crowd-funding is the use of small amounts of capital from a large number
of individuals to finance a new business venture. A crowd-funding campaign is a
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helpful, proven option to see if there’s demand for your product. One of the benefits
of a crowd-funding campaign is that you have a firm timeline and it requires all of
your focus and effort to reach your goal.
Market research can be useful, but real product validation requires paying
customers. Do some research to ensure you have the right platform with the right
community to launch your product, and definitely try to talk to people who have
run successful crowd-funding campaigns for tips.
Selling in person has the added benefit of a strict deadline that you need to
take action by, which is why we personally love it. This deadline acts as a forcing
function that pushes you to get your products ready, and to get yourself ready to
sell them. Once you’re able to meet in person, you’ll benefit by getting to talk to
potential customers, seeing their initial reactions to your product, and finding out
if they are willing to spend money on it.
6. Beta Test
Other ways to validate your product include creating a test version of
something and running it past a small group or audience to get their feedback.
A test version of the product can either be paid, or free, and is a great way
to get testimonials and feedback while you create. You can also use the feedback
from your first round to improve and build on your ideas to make them even better!
Take a look at the execution; it might be they love the concept, but the
delivery needs to be different. Or, that the idea is sound but the offer isn’t clear.
If you are passionate about your product or service and truly believe it has
a place in the market, test it with a few variants of concepts and play around with
some methods of delivery and adding value.
Do your research, build as you go, and make sure that the vibrancy and
energy behind your passion for your offering remain there, and your business and
clients will thank you for it!
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Explore
To master and strengthen the basic concepts that you learned from this
module, please do the enrichment activity below.
Enrichment Activity 1
1. Pick one
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Rubric
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Deepen
Activity 1
Directions: Consider the needs and wants of the people in your community. Decide
whether the following products are marketable or not. Check/tick the box of your
answer.
1. Frozen food
2. gardening essentials (e.g. soil
mix, pebbles, plants)
3. Milk Tea
4. Whitening soap
5. Vitamin C
6. Imported chocolates
8. pizza
9. massage shop
10. spa
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Gauge
Directions: Select the best answer to the following questions. Write the
LETTER of your answer on a separate sheet.
1. Which of the terms below refers to the marketing copy used to describe a
product’s value to potential customers?
A. product description
B. product design
C. product prototype
D. product value
3. What is the first and arguably the best way to validate the marketability
of your product?
A. Making initial sales
B. Receiving orders
C. Receiving product recommendations
D. Receiving positive comments from the product testers
4. Mr. Villanueva uses small amounts of capital from his friends, who
believe that Mr. Villanueva’s new product is a breakthrough, to finance
his new business venture. What marketability validation is he using?
A. beta testing
B. competitive analysis
C. crowd-funding
D. ringing the cash register
6. Nicole wants to find out whether her “pizza flavored daing na pusit” is
marketable in their area, so she decided to participate in a trade fair in
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their barangay so that she may ask in person what her buyers like and
dislike about her pizza. What validation method is used by Nicole?
A. beta testing
B. competitive analysis
C. meeting the customers
D. research existing demand
8. Michelle has recently found out that banana stalks could be made into
flavored chips. She though this could be a big hit in the market
especially that Filipinos are now becoming heath conscious. She decided
make some and give as them token to the attendees of her 18th birthday.
What validation method was used by Michelle?
A. beta testing
B. competitive analysis
C. meeting the customers
D. research existing demand
10. What should be done when your potential buyers are not interested in
your product?
A. Play around with some methods of delivery and adding value.
B. Test your product with a few variants of concepts.
C. Do your research and find out what feature should be changed or
added.
D. All the choices are correct.
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B. ESSAY
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3. There are two common ways to validate the market of a certain product or
service. Which of the two is more reliable? Why?
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Rubrics
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Answers ANSWERS TO PRE-TEST QUESTIONS
A. Multiple-Choice Test
1. A 1. validate
2. C 2. description
3. A 3. market
4. C 4. customer
5. B 5. research
6. C 6. business
7. C 7. income
8. A 8. marketability
9. B 9. beta test
10. D 10. market survey
B. Essay
1. A product/service description is the
marketing copy that explains what a
product/service is and why it's worth
purchasing. The purpose of a product/service
description is to supply customers with
important information about the features and
benefits of the product/service so they're
compelled to buy.
2. The purpose validating a product/service
description is to determine its market. This is
important so that we would know whether
there is an existing demand of the market or
there is none.
3. This item is opinionated. There is no wrong
answer. The learner has to justify his/her
answer.
Key Answer
References
Websites
Parsons, Noah. Demand Validation: How to Find Out If Customers Want to Buy
Your Products. Retrieved from
https://articles.bplans.com/demand-validation-how-to-find-out-if-customers-want-
to-buy-your-product/
Kular, Nimi. (2018, August 30). How to Validate Your Product Ideas. Retrieved from
https://www.shopify.com.ph/blog/validate-product-ideas
Gifford, Jo. (2016). 5 Ways To Validate Your Product or Service. Retrieved from
https://founderu.selz.com/5-ways-to-validate-your-product-or
service/#:~:text=Other%20ways%20to%20validate%20your,and%20feedback%20whi
le%20you%20create.
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