Professional Documents
Culture Documents
Need To Answer Modules
Need To Answer Modules
WEEK 7
Week 6
INTRODUCTION
Failure of a product or service can produce an extremely negative impact on a small business. To prevent this
effect, small-business owners conduct market research before the release of a new product or service to determine
if their offering is likely to appeal to a target market of customers as intended.
This module will discuss the ways in determining the possible products and services that will be able to help you in
your upcoming businesses. The heart of this module is the scanning of the marketing environment where you can
formulate a product or service solution applying the techniques of seeking, screening, and seizing opportunities. As
a result, you will deal with analyzing the need of the market, think of the potential set of products or services that
will meet the need, assess the feasibility of the solution, and select the best product or service that will address the
need.
Scanning the Market
Scanning the market is the starting point of any venture that involves understanding and knowing the intricacies of
the macro-environment, micro-environment, and internal environment. With this, an entrepreneur can recognize
various opportunities and at the same time understand thoroughly the competition where the future business will
cooperate.
The process of seeking, screening, and seizing is adapted to create the most suited product or service for an
opportunity. The general rule is to find the opportunity first before coming up with a new product or service, not
the other way around.
An opportunity is an entrepreneur’s business idea that can potentially become a commercial product or service in
the future. As a reward, the entrepreneur earns profits when the customers are satisfied.
S1- Seeking the opportunity
Seeking is the first step and the most difficult process of all due to the number of options that the entrepreneur will
have to choose from. It involves the development of new ideas from various sources as follows:
1. Macro-environmental Sources
a. STEEPLED – a mnemonic for Sociocultural, Technological, Economic, Environmental, Political, Legal, Ethical,
Demographic Factors. It represents the general environment where the entrepreneur can identify business
opportunities from and where the future business is about to operate.
b. Industry – This is the source of current trend on what is happening in the industry where the future business
will belong to. For example, the entrepreneur should be fully acclimated on what is happening with the rice industry
if he or she wants to establish a rice retailing business.
c. New Discovery or Knowledge – These are new trends that can be the core business model of a new venture. For
example, the influx of mobile applications necessitates businesses to have this platform as one of their transaction
channels.
d. Futuristic Opportunities – These are projected new opportunities that can possibly affect the new business
while it is running. For example, sari-sari stores in the future will be able to incorporate financial transactions such
as accepting bills payment and process remittances.
2. Micro market Sources
a. Consumer preferences, interests, and perception – These are the current need and wants of potential
customers that should be discovered right away by a building entrepreneur. This way, he or she will be able to take a
chance of the opportunity.
Need – is recognized when a customer believes that there is a difference between his or her current situation versus
his or her desired condition.
Want – is recognized when a customer believes that there is a specific product or service that can perfectly suit the
need.
b. Competitors – Recognizing and understanding potential competitors will aid the entrepreneur to develop a
product or service that is unique and will surely stand out from the competition. The 4Ps of marketing (product,
place, price, and promotion) will be competitively position if the entrepreneur is familiar with his or her competitors.
c. Unexpected Opportunities from customers – It may happen in unlikely situations, unlikely places, and with
unlikely people. What entrepreneurs usually do is be on top of the situation and change the market’s perception of a
product or service or build a new market.
d. Talents, hobbies, skills, and expertise – Business opportunities doesn’t only come from the outside but also
within the entrepreneur. The entrepreneur’s talents, hobbies, skills, and expertise can be used as an opportunity. For
example, if the entrepreneur is a painter, why not sell his or her paintings? If he or she is a musician, why not make
music?
e. Irritants in the marketplace such as deterrents, problems, complaints, and delay – Entrepreneurs see
opportunities where there is a recurring problem or sometimes when there is no more hope in solving the problem.
f. Location – Often, entrepreneurs just have to look at their ecosystem and they will be able to spot a business
opportunity right away. For example, if the entrepreneur’s location has many schools then a restaurant, and eatery, or
probably a computer shop might be a good business to establish.
S2- Screening the opportunity
It is the process cautiously selecting the best opportunity. The selection will depend on the entrepreneur’s internal
intent, i.e., the main objective that the business will accomplish in the entrepreneur’s life, and the external intent,
which will address the compelling needs of the target market. The entrepreneur should apply due diligence and
independent judgement in selecting the opportunities that have a potential and eliminate those that are not within
the scope of the entrepreneur’s risk appetite. Risk appetite refers to the entrepreneur’s tolerance of business risks.
S3-Seizing the opportunity
It is the last step in opportunity spotting and assessment. This is the “pushing through” with the chosen
opportunity. Entrepreneurs should make the best out of this opportunity, and they should exert effort and full
dedication for the success of the new venture. The entrepreneur’s idea can be any type innovations listed her.
Innovation is the process of positively improving an existing product or service. It is a key driver for economic
growth. Innovation is inevitable as the world constantly change. Therefore, product and service must also adapt to
these changes. There are three types of innovations according to the degree of distinctiveness.
Methods of generating ideas
Recognizing and understanding the vast sources of opportunities is one difficult activity to do. Also, the methods of
generating ideas may be overwhelming to undergo through. Either one or a combination of the methods given can
be employed by the entrepreneur in generating new ideas.
1. Focused Group Discussion (FGD) – A moderator handles a very open, free-flowing, and in-depth discussion
with a group of people who can provide insightful ideas about a new product or service that will fill the market’s
needs.
2. Brainstorming – it is an activity that allows the participants to share creative ideas using the following rules: (a)
no destructive criticism is allowed, (b) wilder ideas is accepted, (c) more ideas are preferred, and (d) improvement of
others’ ideas is allowed.
3. Brain writing or Internet Brainstorming – This is exactly the same as brainstorming except that the cannel used
is not face-to-face, but in writing or online. The results usually take longer, as the answers depend on the availability
of the participants in answering the questionnaires online.
4. Problem Inventory Analysis – This method is similar to FGD except the participants are already given an
inventory of product or service problems. The participants will just identify from the list given the compelling
problems of a potential product or service instead of generating the ideas from them.
How to Evaluate Market Viability for a Product or Service
When it comes to building a highly profitable business, choosing the right product is without a doubt the most
important piece of the puzzle. A critical first step in making sure you’ve picked a winner is evaluating the market
demand, existing competition and viability of the product itself.
Get this step wrong and you run the risk of wasting your time and energy, or worse, sinking a bunch of money into
inventory you can’t move.
Get it right and you set yourself up for sales and success.
To help you determine if you’ve got a viable and profitable product idea on your hands, we’ve put together this
comprehensive guide that shows you exactly how to take a look “under the hood” of your market and your product
to make sure you’re building your business on a strong foundation.
1. Check out businesses in the geographic area you plan to target to determine the level of competition you
might experience, types of marketing efforts that may succeed or fail and demographics of customers who
purchased a similar product or service. For example, visit competitor stores and websites, evaluate promotion and
sales efforts and observe foot traffic.
2. Make a list of customer demographics, such as age, family status and income, that you believe target
customers for your type of new offering share based on your competitor evaluation and expert analyses from
industry publications. If your budget allows, hire a market research firm to provide you with customer
demographics data for local, national or international sales of similar products or services.
3. Narrow your target market by requesting feedback from a small group of people that have the customer
demographics you're considering. For example, buy a list of targeted contact leads from a direct marketing or
survey firm and then send a questionnaire to the group that asks about their demographics, interests and shopping
habits, such as their reasons for shopping at certain stores and types of products or services they value most.
4. Invite 15 or 20 people from your narrowed list to try a prototype or limited release of a product to get their
general responses and feedback about ways you can make the offering better. For example, allow those in your
test group to try your offering for 10 days and then ask them to complete a survey or participate in a face-to-face
focus group discussion about what they liked or disliked.
5. Change your plan based on your research as needed and then conduct additional survey and focus group
research. Repeat this process until you feel you have a product or service that can succeed with your target
customers.
6. Make a list of other factors besides customer opinion that can affect the success of your offering. Such factors
include natural or man-made disasters, economic changes, new businesses or emerging technologies. Make a list of
alternative methods to attract customers, boost sales or expand your offering to other markets if necessary.
7. Estimate the initial and long-term costs for developing, releasing and promoting a product based on your
research and cost estimates from those directly involved with the project, such as designers, manufacturers,
advertisers, project managers and team members.
Analyze all of your data to determine if you should move forward with your new product or service.
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WEEK 7
INTRODUCTION
To succeed as an entrepreneur, you must develop the ability to select and offer the right products or services to
your customers in a competitive market. More than any other factor, your ability to make this choice will
determine your success or failure.
This module will discuss the ways in choosing a Product or Service to sell. This also include questions and
analyzation that leads you select the best product or services that will meet the need and create more needs to the
consumer.
WHAT TO SELL: HOW TO SELECT THE RIGHT
PRODUCT FOR YOUR BUSINESS?
Key question often asked by start-up entrepreneurs is what to sell in the business. What products or services could
you sell that will make you money? The selection of the right product or service is critical. In fact, the choice of a
product or service for your business can make or break your business. Choose a product that requires significant
production capital when you have none and couldn’t find any, and your business is compromised from the start.
Offer a service that a hundred other entrepreneurs offer in your locality and you may find it hard to get noticed
above your competitors. Or select a product with an extremely specialized market yet you do not know how to
reach the potential customers, and your business can go kaput. Your products or services define your business.
Your products are your business! If you want to turn your business into an income-generating machine, the first
step is to choose the right product or services to sell. With the right products, you even stand a better chance at
keeping your customers.
The idea is to keep your customers forever by continually offering them a valuable product or service, thereby
diminishing your costs of reaching and appealing to them. Wise product selection is therefore critical to your
business success.
How do you choose the right product to sell? Here are a few questions to help you narrow your focus and hopefully
select the product that will work for you:
1. What are your primary considerations for choosing a particular product?
Make a list of your selection criteria, and what you think are important to you in identifying what business to
engage in. There is a myriad reason for selecting a product, and these reasons can include: financial benefit to your
business, relatively low investment requirements, positive return on investment, fit with present strategy, feasible
to develop and produce, easy to source and procure, relatively low risk, and time to see intended results.
2. Can you meet the needs of the customer and solve a specific problem?
Your product must address a need or an opportunity. You need to know how your products or services can assist
customers. It must have a real value that customers can recognize, want and need. Include in your product
information and sales materials how your products can benefit the customers, e.g., help reduce time, effort and
expense.
3. How capable are you to produce the product?
Just as an athlete needs to know his physical condition before he enters a race, you must also know if you have the
time, resources and capability to produce your product. Many entrepreneurs make the mistake of going forward
with a business idea only to find that they cannot afford the manpower required, or do not have the resources to
outsource the product development. As a result, many experiences slip page in release dates making the mistake of
launching half-finished web sites. You must also evaluate at the onset how you can scale up the production if there
is a strong demand for the product.
4. What is the size of your potential reachable market?
You need to at least get an idea of the size of your market. Know who are likely to use or benefit from your
products. If you are selling an information product on how to sell at Lazada or Shoppe, define who will be your
potential customers you think will be interested in your product. Many small and home business entrepreneurs
view market research as an unnecessary and expensive cost but understanding who and how big your market can
pay off in the long run.
5. Would you need to comply with government rules and regulations?
New laws or government rules and regulations can impact your product. Some products can be sold immediately
without the need for government approval. Others, however, require permits, licenses and approval from the
government.
6. If a similar product exists, can your product be superior in its functionality, presentation or marketing?
This entails knowing and understanding your Unique Selling Proposition. Your unique selling proposition is the one
thing that makes that your product different than any other. It’s the one reason they think consumers will buy the
product even though it may seem no different from many others just like it. It may be that the product has a lower
price or more convenient packaging, or it may taste or smell better, or last longer.
7. What barriers must be overcome for a potential new product entry?
Barriers to entry include high research and development expenditure, high presence of start-up or sunk costs, and
international trade restrictions such as tariffs and quotas. Patents are likewise important barriers for many small
and home-based businesses, where your competitor may hold legal protection for an integral component of your
product and hence may prevent you from manufacturing your product. Other barriers to entry include predatory
pricing of competitors that will force you to operate at a loss, high advertising and marketing costs to compete with
established brands in the industry, and the cost advantages enjoyed by your competitor that allows them to set
lower prices.
8. What are the potential sales, growth, profits, and time for payback?
Before starting your business, run your numbers first. Get a clear idea of your cost structure, how much sales you
need to have to breakeven and post a profit, and what your return on investment will be.
Customer-Driven Marketing Strategy
There are four process of marketing strategy:
1. MARKET SEGMENTATION – Dividing a market into distinct groups of buyers who have different needs,
characteristics, or behaviors, and who might require separate products or marketing programs.
2. MARKET TARGETING - The process of evaluating each market segment’s attractiveness and selecting one or
more segments to enter.
3. POSITIONING - Arranging for a product to occupy a clear, distinctive, and desirable place relative to
competing products in the minds of target consumers.
4. DIFFERENTIATION - Actually differentiating the market offering to create superior customer value. It is the
most critical means to deliver true customer value and achieve superior competitive advantage. The challenge is
not to customize products and services in itself – but to do it in a profitable way. Ex. Product customization,
bundling, and attractive pricing.
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WEEK 6
Introduction
Statement of the Problem
Assumption/ Hypothesis
As they say, the most difficult part of any endeavor is the starting point. This is because the first chapter is where
you conceptualize your entire research. The whole research/thesis can be reflected in Chapter 1 including expected
results or outcomes. For your guidelines, please read the following sample format of Chapter 1.
Introduction
Introduction is that part of a document that tries to introduce the document in an interesting manner to the
reader. Introduction is all about what a reader can expect in the document, in a concise manner. However, the
introduction contains all the major points that are actually covered in the document. Introduction has to be
presented in such a manner so that it lures the reader into reading the entire document. This is not easy, and an art
in itself to compel the reader to pick up the research paper and read it in its entirety. This compares well with the
trailer of a movie that picks up highlights of the movie to make it look very interesting for the viewer. The
introduction is the broad beginning of the paper that answers three important questions for the reader:
What is this?
Why should I read it?
What do you want me to think about / consider doing / react to?
Background of the Study
Background of a research paper is written with the intention of clarifying the importance and the necessity of the
paper in the first place. Why the study and what the basic purpose behind the study are the major questions that
are answered through background that is presented with a research paper. A background is also a tool in the hands
of the writer to prepare a reader for the document who is not familiar with the concepts discussed in the paper.
Background also tries to prepare a reader to send him finally to read the full document.
It is hard to expect a reader to read the full document without creating a background as to what made the writer
prepare the document. Background information is necessary as often a reader is interested in knowing the
incidents prior to the research. It is like the foundation stone of a building upon which the entire edifice later
stands.
NOTE: It is often useful to review the introduction and the background of the study late in the writing process. This
is appropriate because outcomes are unknown until you've completed the study. After you complete writing the
body of the paper, go back and review introductory descriptions of the structure of the paper, the method of data
gathering, the reporting and analysis of results, and the conclusion. Reviewing and, if necessary, rewriting the
introduction ensures that it correctly matches the overall structure of your final paper.
Statement of the Problem
A statement of the problem is used in research work as a claim that outlines the problem addressed by a study. The
statement of the problem briefly addresses the question: What is the problem that the research will address?
What are the goals of a statement of the problem?
The ultimate goal of a statement of the problem is to transform a generalized problem (something that bothers
you; a perceived lack) into a targeted, well-defined problem; one that can be resolved through focused research
and careful decision-making.
Writing a statement of the problem should help you clearly identify the purpose of the research project you will
propose. Often, the statement of the problem will also serve as the basis for the introductory section of your final
proposal, directing your reader’s attention quickly to the issues that your proposed project will address and
providing the reader with a concise statement of the proposed project itself.
What are the key characteristics of a statement of the problem?
A good research problem should have the following characteristics:
It should address a gap in knowledge.
It should be significant enough to contribute to the existing body of research
It should lead to further research
The problem should render itself to investigation through collection of data
It should be of interest to the researcher and suit his/her skills, time, and resources
The approach towards solving the problem should be ethical
What is the format for writing a statement of the problem?
A persuasive statement of problem is usually written in three parts:
Part A (The ideal): Describes a desired goal or ideal situation; explains how things should be.
Part B (The reality): Describes a condition that prevents the goal, state, or value in Part A from being
achieved or realized at this time; explains how the current situation falls short of the goal or ideal.
Part C (The consequences): Identifies the way you propose to improve the current situation and move it
closer to the goal or ideal.
Sample Statement of the Problem
The purpose of this study is to develop a source material in food dehydration craft technology which can be used
by Makabayan teachers in teaching food dehydration in the Home Economics class. The purpose of the study is to
answer the following questions:
1. What will be the contents of the source material?
2. What content/s is/are most applicable and doable for practical use of the teachers?
3. How could secondary school teachers integrate food dehydration methods in the Makabayan subject?
4. How to use a project-based approach in the construction and design of the proposed source material?
Hypothesis
A hypothesis is a statement that can be tested by scientific research. If you want to test a relationship between two
or more things, you need to write hypotheses before you start your experiment or data collection.
A hypothesis states your predictions about what your research will find. It is a tentative answer to your research
question that has not yet been tested. For some research projects, you might have to write several hypotheses that
address different aspects of your research question.
A hypothesis is not just a guess — it should be based on existing theories and knowledge. It also has to be testable,
which means you can support or refute it through scientific research methods (such as experiments, observations and
statistical analysis of data).
Developing a hypothesis
1. Ask a question
Writing a hypothesis begins with a research question that you want to answer. The question should be focused,
specific, and researchable within the constraints of your project. Consider the example below:
2. Do some preliminary research
Your initial answer to the question should be based on what is already known about the topic. Look for theories
and previous studies to help you form educated assumptions about what your research will find.
3. Formulate your hypothesis
Now you should have some idea of what you expect to find. Write your initial answer to the question in a clear,
concise sentence.
4. Refine your hypothesis
You need to make sure your hypothesis is specific and testable. There are various ways of phrasing a hypothesis,
but all the terms you use should have clear definitions, and the hypothesis should contain:
The relevant variables
The specific group being studied
The predicted outcome of the experiment or analysis
5. Phrase your hypothesis in three ways
To identify the variables, you can write a simple prediction in if…then form. The first part of the sentence states the
independent variable and the second part states the dependent variable.
In academic research, hypotheses are more commonly phrased in terms of correlations or effects, where you
directly state the predicted relationship between variables.
If you are comparing two groups, the hypothesis can state what difference you expect to find between them.
6. Write a null hypothesis
If your research involves statistical hypothesis testing, you will also have to write a null hypothesis. The null
hypothesis is the default position that there is no association between the variables. The null hypothesis is written
as H0, while the alternative hypothesis is H1 or Ha.
Hypothesis examples
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WEEK 7