Senior High School

Entrepreneurship
Module 3:
Market Needs in a
Potential Market

1
AIRs - LM
LU_ Entrepreneurship_Module 3
ENTREPRENEURSHIP
Module 1: Market Needs in a Potential Market
Second Edition, 2021

Copyright © 2021
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.

Development Team of the Module

Author: Marites C. Martinez

Editor: SDO La Union, Learning Resource Quality Assurance Team
Content Reviewer: Kay Owen L. Boado
Language Reviewer: Kay Owen L. Boado
Illustrator: Ernesto F. Ramos, Jr.
Design and Layout: Angela Pauline C. Ganuelas

Management Team:

Atty. Donato D. Balderas Jr.

Schools Division Superintendent
Vivian Luz S. Pagatpatan, Ph.D
Assistant Schools Division Superintendent
German E. Flora, Ph.D, CID Chief
Virgilio C. Boado, Ph.D, EPS in Charge of LRMS
Lorna O. Gaspar, EPS in Charge of Entrepreneurship
Michael Jason D. Morales, PDO II
Claire P. Toluyen, Librarian II

Printed in the Philippines by: _________________________

Department of Education – SDO La Union

Office Address: Flores St. Catbangen, San Fernando City, La Union
Telefax: 072 – 205 – 0046
Email Address: launion@deped.gov.ph

LU_ Entrepreneurship_Module 3
 SHS
Entrepreneurship
Module 3:
Market Needs in a
Potential Market

LU_ Entrepreneurship_Module 3
Introductory Message
This Self-Learning Module (SLM) is prepared so that you, our dear
learners, can continue your studies and learn while at home. Activities,
questions, directions, exercises, and discussions are carefully stated for you
to understand each lesson.

Each SLM is composed of different parts. Each part shall guide you
step-by-step as you discover and understand the lesson prepared for you.

Pre-tests are provided to measure your prior knowledge on lessons in

each SLM. This will tell you if you need to proceed on completing this module
or if you need to ask your facilitator or your teacher’s assistance for better
understanding of the lesson. At the end of each module, you need to answer
the post-test to self-check your learning. Answer keys are provided for each
activity and test. We trust that you will be honest in using these.

In addition to the material in the main text, Notes to the Teacher are
also provided to our facilitators and parents for strategies and reminders on
how they can best help you on your home-based learning.

Please use this module with care. Do not put unnecessary marks on
any part of this SLM. Use a separate sheet of paper in answering the exercises
and tests. And read the instructions carefully before performing each task.

If you have any questions in using this SLM or any difficulty in

answering the tasks in this module, do not hesitate to consult your teacher
or facilitator.

Thank you.

LU_ Entrepreneurship_Module 3
 Target

MARKET NEEDS IN A POTENTIAL MARKET

A potential market is the part of the market you can capture in the future
that includes the demographics groups that are not currently your customer but
become your customer in the future. This is used in a business proponent that is
precisely true with the target customers, target market and or target audience. The
target market must be identified by using different kinds of surveys that you know,
like, online or oral interview, by that way, you will already identify and determine
the products and services they are looking for, after that, the entrepreneur already
have an idea how and what to cater in your potential market.

In your previous lesson, You have learned that in entrepreneurship a person

(entrepreneur) who set up a business must recognize its financial risk. One must
make their business work by eliminating any hindrances or distractions to their
goals. They must overarch strategies and outline the tactics to accomplish them.
Successful entrepreneurs are disciplined enough to take steps every day toward the
achievement of their objectives. If you possess the quality of an entrepreneur to
perform a business venture you may now start having your small business. But
before you start your business let us study various factors required to be considered
while setting up any small business.

This learner material will provide you with information and activities that will help
you more understand about market, products, and services.

After going through this learner material, you are expected to:

1. Define potential market, target customer, products and services and needs
and wants; and
2. Determine the possible product/s or service/s that will meet the need.
(TLE_ICTAN11/12PC-Ia-1)

LU_ Entrepreneurship_Module 3
 Jumpstart
For you to comprehend the exercise well, do the accompanying
exercises. Have a great time and good luck!

Activity 1: Read and get to know me!

Direction: Read the five key concepts in understanding and determining customer
needs. Understand what you are reading.

Customer Needs is a mission-critical for business looking to create product that

truly speaks to their customer’s problems.

The customer needs are the named and unnamed needs your customer has when
they come in contact with your business, your competitors, or when they search for
the solutions, you provide to identify the needs of your customers at every step of
your process. You can identify customer needs in several ways, by conducting focus
groups, listening to your customers or social media, and keyword research.

(a) Needs, Wants, and Demands. Needs are a special kind of want and refer to
things we must have to survive, such as our basic needs. While wants are
desires for goods and services we would like to have but do not need.
Demands are requests for specific products that the buyer is willing and able
to pay for over a specific period.

(b) Products, Services, and Experiences. A product is any good, service, or idea
that can be offered to a market to satisfy a want or need. On the other side,
services are the non-physical, intangible parts of our economy, as opposed
to goods, which wan touch or handle. Experiences are knowledge or skill in
a job or activity, which you have gained because you have done that activity
or work for a long time.

(c) Value and Satisfaction. A value refers to the value customers place on a
product or service. Satisfaction on the other hands, is the measure of how
well customer expectations from a purchased product or service have been
meet.

(d)Exchanges and Relationships. Exchange is the act of obtaining desired

object from someone by offering something in return (Armstrong et al 2009).
On another note, relationship is a connection between two people or things.

(e) Markets. Market is defined as the group of individual or organizational

customers who have both the willingness and financial capability to
purchase a product or service.

LU_ Entrepreneurship_Module 3
Direction: Choose your answer from the given choices. Write your answer in
a separate sheet of paper. Write the letter only.

1. What do you call the special kind of want?

A. Demand B. Needs
C. Wants D. Service

2. What do you call the knowledge or skill in a particular job or skill?

A. Product B. Service
C. Experiences D. Demand

3. Which is used to measure of how well customer expectations from a

purchased product or service have been meet?
A. Satisfaction B. Value
C. Experiences D. Demand

4. What do you call the name and unnamed needs of your customer?
A. Customer Needs B. Consumer Products
C. Customer Services D. Demand

5. Which is called the requests for specific products that the buyer is willing
and able to pay for over a specific period?
A. Needs B. Wants
C. Demands D. Value

LU_ Entrepreneurship_Module 3
 Discover

Anyone can start a small business unit. He may be an existing entrepreneur

or a new one, having a business background or not educated or uneducated from
rural area or urban area. A potential market is the part of the market you can
capture in the future. It includes the demographic groups of customers that will
purchase your product or services in the future who might become your regular
customers from the expansion of your business. A target customer that makes up
its share in the available market is to be set by every business owner. The best ways
to grow your business is to identify your potential market that you can begin to
target. The potential market allows you to:

1. Identifying new customers to ensure the future of your business.

2. Think proactively about ways for your business to grow and change.
3. Show the potential of your business to investors or collaborators.
4. Increase your profit.
5. Create a strategic plan when there will be changes in the economy or market.
In identifying your potential markets, you are not just increasing your share for
today but ensuring the increase of your profit in the future. If you are an ambitious
entrepreneur with a promising product, you probably can’t wait to show it to
potential customers. But before you go into “sales mode,” you might want to sit down
at your desk, look at your value proposition and do some research.

In entering a business, always

remember that there is always
uncertainties that occurs, that’s why you
have to set yourself on what to face in
reality.

Entrepreneurs take a deep study on how

they will know better on their potential
market (how?). Know their wants and
needs including the demands; that Figure 1. Customer needs and wants.
includes the products they are looking https://miro.medium.com/max/1400/1*YB_7NJlz
XD9KVvo94u_dWg.png 21493022
for, and what good and services has to be
given to the customers and how to deliver
the products to the customers in a safest way not to harm them because customers
are the (VIP),the very important person of all the entrepreneurs.

LU_ Entrepreneurship_Module 3
 In market, there is a capability to purchase a
product/service that can be variable as it can
expand or contact depending on certain
factors.

Market demand is the total demand of all

potential customers for a specific
product/service over a specific period in a
specific market area.

Value, consumers have different needs and

buying capacities, consumers assign
Figure 2. Supply and Demand Curve. varying values on the same product or
https://www.vectorstock.com/royalty-free-
vector/curve-of-and-supply-demand-vector 21493022
service.
The product with the highest quality does
not always provide the highest value for customers. In valuing customer, an
entrepreneur must give the good brand and quality of the product to their customer,
the product that suits their different needs that gives full satisfaction in using and
consuming it especially the consumer goods.
Satisfaction, to ensure the maximum customer value and satisfaction,
entrepreneurs and marketers must: balance product or service quality and price,
establish consistency among product availability, level of customer service and
efficiency and have the consumer and atmosphere feel comfortable and convenient.

Products are considered tangible goods

wherein the goods can be seen and touched or
the intangible service that the enterprise
offers to its customers to satisfy their needs
and produce the expected results.

Services are the intangible goods wherein you

will be paid according to your profession,
skills, and talents.
Figure 3. Scale of Customer Satisfaction.
https://www.vectorstock.com/royalty-free-vector/scale-
of-customersatisfaction-vector 21493022

TYPES OF PRODUCTS

There are three types of products which can be distinguished via consumption and
tangibility. These are durables, non-durables, and services.
1. Durables- these are the products which have long
interval between repeat purchases because of their
long-lasting nature. (Example. television sets like
HAIER and LG. cars like Toyota and Mitsubishi etc.)

Figure 4. Durable Products

https://slideplayer.com/slide/47253
08/ 21493022

LU_ Entrepreneurship_Module 3
 2. Non-durables- products have stronger repeat
purchases because they are consumable. (Example:
shampoo, bar soap, biscuits etc.)

Figure 5. Non-Durable Products

https://slideplayer.com/slide/47253
08/ 21493022

3. Services- these are the products which are essentially intangible because
there are no physical items involved (example: training services, food
vending, dental and rental services etc.)

CATEGORIES OF PRODUCTS

1. Convenience Products have the lowest risk and lowest effort in buying the
products because consumers will not spend a lot of time or money in buying
those products and can be sold by wholesales. (example; staple goods)
2. Preference Products are consumer goods that have the specific preferences
for brands or suppliers but are willing to make substitution when necessary.
3. Shopping Products are products that consumers feel are worth the time and
effort to compare with other competing products. (example: tiles)
4. Specialty Products are unique, customized products which have their own
niches, and this commands utmost loyalty from another buyer.

10

LU_ Entrepreneurship_Module 3
 Explore

ENHANCEMENT ACTIVITY 1: COMPLETE ME!

Direction: Fill up the table by filling the missing words using the different types of
products. Write answers on a separate sheet of paper.
Products Type of products
1. bath soap 1.non-durables
2. washing machine 2.
3. fruit vending 3.
4. repair and maintenance 4.
5.fish vending 5.
6. toothpaste 6.
7. detergent bar 7.
8. canned goods 8.
9. milk products 9.
10. massage therapy 10.

ASSESSMENT 1:

Direction: Answer the following question. Write all answers in separate sheet of
paper. Choose the letter of the correct answer.

1. What product has the lower risk and lower effort?

A. Convenience Products B. Shopping Products
C.Specialty Products D. Consumable Products
2. What do you call the product that is unique and customized product?
A. Specialty Products B. Convenience Products
C.Preference Products D. Consumable Products
3. Which product has a long interval between repeat purchases of the
customers?
A. Durables B. Non- Durables
C. Services D. Consumable Products
4. What do you call an intangible goods that no physical item involved?
A. Durables B. Non- Durables
C. Services D. Consumable Products
5. What do you call a product that suppliers are willing to make substitution
when necessary?
A. Preference B. Non- Durables
C. Services D. Consumable Products

11

LU_ Entrepreneurship_Module 3
 Deepen

Let us check how well you have understood the lessons by

working activity below. Good luck!

Entrepreneurial Research Activity:

Direction: Satisfy the demand of the following: Use separate sheet of paper for your
answer. You can search the Internet for the additional evidence that will support
your answer.
1. Compare and Contrast: The distinction of target market and target audience.
2. How can you recognize a target market from a target audience?
3. What is the difference between market and a target market?

Rubric for Scoring

4 3 2 1
Features (Expert) (Accomplished) (Capable) Beginner

Quality of Answers was Answer was Answer had a Answer had no

writing written in an written in an little style, give style, gives no
extraordinary interesting some new new information
style, very style, information but and very poorly
informative and somewhat poorly organized.
well organized. informative organized.
and
organized.
Grammar Virtually no Few spellings A number of So many
Usage and spelling, and punctuation spelling spellings
Mechanics punctuation or error, minor punctuation punctuation
grammatical grammatical and and
error. errors. grammatical grammatical
errors. errors that
interfere with
the thought of
the answer.

Great job! You have understood the lesson well! Are you now ready to take the
final assessment?

12

LU_ Entrepreneurship_Module 3
 Gauge

I. Multiple Choice
Direction: Read carefully each item. Use separate sheet for your answers. Write
only the letter of the best answer for each item.

1. Which is called a special kind of want and refer to things we must have to survive?
A. Demand B wants
C. Needs D. Products
2. Which of the choices below requests for specific products that the buyer is willing
and able to pay for over a specific period?
A. Demand B. wants
C. Needs D. Products
3. Which of the choices refers to consumers will be able to feel worth in comparing
and competing with other products?
A. Specialty products B. Shopping Products
C. Convenience Products D. Consumer Products
4. What do you call a specific preference for brands?
A. Preference products B. Shopping Products
C. Convenience Products D. Consumer Products
5. Which is called the consumer will not spend a lot of time or money in buying those
products?
A. Preference products B. Shopping Products
C. Convenience Products D. Consumer Products
6. Which of the following choices refers to the total demand of all potential customers
for a specific product or service over a specific period in a specific market area?
A. Market B. Potential Market
C. Market Demand D. Target Market
7. Which of the choices refers to any good, service, or idea that can be offered to a
market to satisfy a want or need?
A. Product B. Experiences
C. Services D. Consumer
8. Which of these are the products that is intangible because there are no physical
items involved?
A. Non- Durables B. Durables
C. Services D. Products
9. Its enterprise offers to its customers in order to satisfy their needs and produce
the expected results.
A. Services B. Intangible Service
C. Products D. Tangible

13

LU_ Entrepreneurship_Module 3
10. Which is an act of obtaining desired object from someone by offering something
in return?
A. exchanges B. Market Demand
C. Relationship D. Tangibles

I. True or False
Direction: On your answer sheet, write T if the statement is true, and F if
otherwise.
11. Potential Market is used in a business proponent that is precisely false with
the target customers, target market and or target audience.
12. Services are the non-physical, intangible parts of our economy, as opposed
to goods, which wan touch or handle.
13. Preference Products are unique, customized products which have their own
niches, and this commands utmost loyalty from other buyer.
14. Services are the tangible goods wherein you will be paid according to your
profession, skills, and talents.
15. In market demand there is a capability to purchase a particular
product/service that can be variable as it can expand or contact depending
on certain factors.

14

LU_ Entrepreneurship_Module 3
LU_ Entrepreneurship_Module 3
15
Jumpstart
Activity 1: Read and get to know me
1. A 2. C 3. A 4. A 5. C
Explore
Enhancement Activity 1: Complete me
1. Non-durables
2. Durables
3. Services
4. Services
5. services
6. Non-durables
7. Non-durables
8. Non-durables
9. Non-durables
10. services
Assessment 1
1. A 2. A 3. A 4. C 5. A
Deepen: Answers may vary Gauge
Multiple Choice
1. B 5. B 9. B
2. A 6. B 10. A
3. C 7. A
4. A 8. B
II. True or False
11. F 14. F
12. T 15. F
13. F
Answer Key
References
Books

Chiqui E. Go & Josiah Go, Principles and Practices in Marketing in the Philippines
(Quezon City, Philippines: Josiah and Carolina Go Foundation, Inc.:2017), 216-
222.

Eduardo A Morato, Jr. Entrepreneurship Manila, (Philippines: Rex Bookstore,

Inc.;2016), 8-9, 60.

Torres et. al, Principles of Marketing, (Quezon City, Philippines: Vibal Group,
Inc.;2016), 4-11.

Electronic Resources:

“16 Types of Customer Needs,” Last modified May 14, 2019,

https://blog.hubspot.com/service/customerneeds#:~:text=Product%20Needs&text
=Customers%20need%20your%20prduct%20or,solve%20their%20problem%20or%
20desire.&text=Customers%20have%20unique%20budgets%20with,purchase%20a
%20product%20or%20service.&text=Your%20product%20or%20service%20needs,c
ustomers%20are%20trying%20to%20meet.

“Products and Services: What are products and services,” Last modified July 23,
2020,
https://corporatefinanceinstitute.com/resources/knowledge/other/products-and
services/

“Identifying and Meeting Customer Needs,” Last modified July 24, 2020,
conductor.com/learning-center/customer-needs/

Graphics/Visuals:

Bell, Jemima Crystal, Chapter 12: SectionMain Menu Gross Domestic Product What
is gross domestic product (GDP)? How is GDP calculated? What is the difference
between nominal and real GDP, from https://slideplayer.com/slide/4725308/
Dzyuba, Scale of Customer Satisfaction, https://www.vectorstock.com/royalty-free-
vector/scale-of-customersatisfaction-vector-21493022

Alicia Freites, Understanding Your Customers’ Needs and Wants a Consultant’s Point
of View, https://medium.com/@aliciafreites5/understanding-your-customers-
needsand-wants-aconsultant-s-point-of-view-d04402d8b6c3
Katelynn Keller, Marketing Principles Learning Portfolio: Understanding Customer
Needs,
https://katelynnkeller.wordpress.com/category1/?fbclid=IwAR3uNowMaAK0p7e
WVssl9jBpJa5nAkFovgJ5pSh6jFL0ajeuQwb_o6Q8Rzs

16

LU_ Entrepreneurship_Module 3
 For inquiries or feedback, please write or call:

Department of Education – SDO La Union

Curriculum Implementation Division
Learning Resource Management Section
Flores St. Catbangen, San Fernando City La Union 2500
Telephone: (072) 607 - 8127
Telefax: (072) 205 - 0046
Email Address:
launion@deped.gov.ph
lrm.launion@deped.gov.ph

17

LU_ Entrepreneurship_Module 3