SUBJECT TITLE : Entrepreneurship

MODULE TITLE : The Right Product for the Right Market

MODULE NO :8
NOMINAL DURATION : 4 Hours
LEARNING OBJECTIVES:
At the end of this module, the student will be able to:
1. Describe the entrepreneurial mind;
2. Differentiate creative, technical and business mind; and
3. Analyze how the creative mind, technical mind and business mind are applied in the
product conceptualization.
MODULE CONTENT:

New Product Development

Successful new products spring from the convergence of the creative mind, the technical mind
and the business mind which come together in the entrepreneurial mind.

Entrepreneurial Mind
1) Creative Mind – conceptualizes and designs a product that consumers find some use for
-produces a product that is pleasing to see, touch, smell, hear and taste
-produces a product that creates emotional attachment and eventually becomes a significant
personal expression of the consumer
2) Technical mind – is the technology originator, this is what drives the entrepreneur to convert
new knowledge into something highly functional and operational
-this is also the technology adaptor; the entrepreneur uses old knowledge for new applications
in various fields of human endeavor
-it is also a technology renderer; the entrepreneur resolves to make a new product work for the
product creator by configuring and reconfiguring the technical design of the new product
3) Business mind – harnesses the potentials of new products by creating the market space for
them
-it also organizes sufficient forces and resources to develop, launch and commercialize the new
product in order to maximize its market value
-manages the external and internal business environment of the new product, which goes
beyond the product development process itself

Case Example: The Lampturn

This new product was a desk lantern that reflected colorful and moving images onto the lantern
screen. It is positioned as a novelty night lamp for children’s bedrooms or a mood lamp for living rooms.
The images were illuminated on the lamp screen by an electric bulb of small wattage. As the lamp was
lit, the heat of the lamp caused the lamp to turn. While the screen revolved around the four sides of the
rectangular lamp, an illusion of changing shapes and sizes was created while the images moved from
one end of the screen to another.

Product Conceptualization and the Creative Mind

-the purpose of the lamp was to create mood and ambience, delight and fascinate viewers and
to serve as a center piece for rooms with its theatrical display of images
-it could be used as a night lamp, a child pacifier, or a decorative and conversational piece
-the sensorial-emotional appeal of the lamp was heightened by the use light amidst darkness,
the highly colorful and moving shapes, and the images and the mood evoking scenery. The aesthetic
appeal of the Lampturn is obvious.

Product Development and the Technical Mind

- To convert the product concept into a viable product, the technical mind must intervene to
provide the quality and performance specifications through technology
- In the example, Lampturn simply required the application of existing technology (or
technology rendering)
- Entrepreneurs need to fit the existing technology to their product concept

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 - This is the challenge to entrepreneurs, to search for the appropriate technology for their
product concept
- In the case of the Lampturn; first, it must resemble the lantern in the movies; second, it
must be sturdy and safe for placing in a child’s bedroom; third, it must be easily
transportable and displayable; fourth, it must be relatively easy to make for replication and
mass production purposes and fifth, the lamp must be made of materials that do not cost
much
- The above technical considerations proved to be very challenging for the entrepreneurs,
that is why they had to seek the guidance of experts, they have to tap the technical minds of
electricians, engineers and artists to develop the Lampturn.
- Prototypes were fashioned, critiqued and discarded until the entrepreneurs became
satisfied with a final prototype

Product Launch and the Business Mind

-the business mind brings the product from the prototype stage to the production phase and
finally, to its ultimate destination, the marketplace
-the product must be made shop-ready for commercial purposes
-the business mind must determine the best way to maximize product sales to its target market
-the right distribution and sales people should be tapped and deployed
-in the case of Lampturn, as soon as the final prototype was approved, the next step was to test
market the product prototype. The test was conducted in two phases. The first using the FGD (focus
group discussion). The second phase involved the placement and selling of the lantern at alternative
outlets to determine their price threshold and potential sales volume
-the results of the test were as follows:
First focus group discussion (potential consumers ages ranging from 15-50):
 The fish design was particularly liked. Other designs like planets, angels and Christmas
motifs were recommended
 A suggested price range of P500.00-P1,200.00
 The product could be used as a home décor or as gifts to friends
 The FGD raised the issue of safety and recommended that instructions be given on how to
handle the electrical component
Second focus group discussion (interior designers for product enhancement purposes):
 Recommended that the lantern be sold in home décor stores rather than novelty shops to get
price premium
 Suggested additional designs like carousels and flowers
 They saw the lantern as a living room or bedroom lighting display that must have a fireproof
certification
 The lamp should be packaged in a strong box to protect it from breaking

In the pre-Christmas bazaar sales, the entrepreneur wanted to:

 See how the product would move in the market
 Who would buy it and for what purpose
 At what price range
 With what customer comments
In the five bazaars:
 26 lamps were sold
 8% of the buyers were women ranging from teenagers to young and older mothers
 The introductory price of P800.00 was readily accepted
 50% of the lanterns were intended as gifts

The second marketing phase attempted to place the product in several commercial outlets namely;
 Home décor and home furnishing stores
 Novelty and gift stores
 Lamp and lighting fixture stores and
 Children’s toy stores

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 Novelty stores tended to price the lantern between P895.00-P1,200.00 to generate faster
turnover. The home décor stores priced the product between P1,200.00-P1,400.00. it was not
difficult to sell the products to the stores. Fifty-eight units were sold in the first 23 days,
indicating good market prospects. Because of this, the entrepreneurs positioned the product:
 As novelty home décor item;
 For children’s bedroom or for living room display; and
 For women buyers aged 15 to 50

The New Improved Product

There are many existing products in the market that are serving the needs and wants of
customers but not well. The existing products are tolerated because there are enough features and
attributes to make the customers want to buy the product. However, there are enough “dissatisfiers” in
the product to warrant the introduction of new improved versions, or modifications of the product. The
key term is “innovation”.

REFERENCE:

Morato, E. Jr. (2016) Entrepreneurship. Rex Book Store. Manila, Philippines.

Prepared by:
Ms. Necie Mae Agana
Mrs. Venancia Banguisan
Mrs. Loida Nadiahan
Mr. Jhun Piza

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EVALUATION/ASSESSMENT/PERFORMANCE TASK:
DATE SUBMITTED:
NAME OF STUDENT:
STRAND:
MODULE NUMBER: 8 (Entrepreneurship)

Instructions: Get to know the latest products in the market. Choose one specific product only and
evaluate it by completing the table below. Please write your answers neatly and clearly. (70 points)

1.Product name and

details (model,
manufacturer/producer,
etc.)

2.Creative mind a. What can you say about the

design of the product?
b. What is emotionally captivating
about the product?
c. How beautiful is the product? Do
you want to own it?
d. If you were able to buy the
product, would it make you feel
more important and accomplished?
3.Technical mind a. Is there a new technology in the
product?
b. Is it highly functional and
operational for users?
c. Is the technical design of the
product rendered in a superior way?
d. How does the present product
improve from an old product? Is the
improvement worth it?
4.Business mind a. Were the manufacturers able to
create a lot of market space for this
new product?
b. Was the product launched,
advertised and promoted very well?
c. Does the product have great
appeal?
d. Is the product acceptable in
price?
e. Is the product using great
marketing channels?

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