CARAMOAN COMMUNITY COLLEGE

Caramoan, Camarines Sur

A/Y 2021-2022
2nd Semester MC TLE102-BEEd3ABCD-OVA

Name: ________________________Yr./Sec: ____________ Week Number: 7

Course Code: MC TLE102 with Entrepreneurship
Course Title: Edukasyong Pantatahan at Pangkabuhayan with Entrprenuership
Name of Faculty: Oliver V. Ables
Day and Time:
BEEd 3ABCD

MODULE 5

After going through the module, you are expected to:

 recognize a potential market and analyze the market need.

Lesson 4 The Potential Market and the Market Need

PRE-TEST
DIRECTIONS: To check your prior knowledge about the topic, please analyze
the pictures below and list down at least three (3) potential markets that
entrepreneurs should consider during this COVID -19 pandemic and indicate
their needs. Write your answer in the space provided.

https://
images.
search.y
AHoo.co
m/

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 CARAMOAN COMMUNITY COLLEGE
Caramoan, Camarines Sur
A/Y 2021-2022
2nd Semester MC TLE102-BEEd3ABCD-OVA

Potential Market Market Need

1. 1.
2. 2.
3. 3.

!
LOOKING BACK TO YOUR LESSON
As we go further, let us try to recall the competencies in Entrepreneurship.
o Competencies such as risk seeking, assertiveness and vision are
considered typical of a successful entrepreneur
(www.ideasforleaders.com).

o Specific techniques and habits must be practiced and developed

by all would-be entrepreneurs. Aside from business competencies,
entrepreneurs need interpersonal and self-leadership skills too; however,
these are often overlooked.
Entrepreneurial behavior’ can be learned and developed
(www.ideasforleaders.com).

o If you’re an aspiring entrepreneur, there are different career paths

you can take to turn your dream into a reality. Which path you choose
will depend on your experience, skills, finances, and flexibility, as well as
your goals for the future (Doyle, A., 2020).

Please answer the questions below. Good Luck!

Multiple Choice. Write the letter of the correct answer that best complete the
sentence in the space provided.

______1. All are core competencies in Entrepreneurship, except:

A. basic bookkeeping/ accounting skills B. communication skills
C. building relations with customer D. building competitive advantage

______2. Which of the following is not a business competency? This competency

covers the outcomes required to build, _____ and grow a micro/small-scale
enterprise - like developing and maintaining small-scale business, establish
customer base, and manage business finances.
A. Establish customer service B. Manage finances

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 CARAMOAN COMMUNITY COLLEGE
Caramoan, Camarines Sur
A/Y 2021-2022
2nd Semester MC TLE102-BEEd3ABCD-OVA
C. Preparing business letters D. Monitoring operations

______3. Which is not a goal of entrepreneurial competency?

A. Expanding the enterprise B. Expanding markets and
clientele C. Developing individuals and teams D. Enhancing one’s
business skill

______4. All are important aspects of Entrepreneurship as a course,

except: A. Discussion on economic issues and concerns.
B. Explanation of key concepts of competencies in Entrepreneurship.
C. Discussion on the relevance of the course.
D. Exploration of career opportunities.

_______5. Which of the following does not cover a high-performing enterprise?

A. Build and develop the enterprise to be more competitive within a
changing business environment.
B. Creating gaps among employees.
C. Responding to consumers’ demand.
D. Maintaining product quality and accessibility.

BRIEF INTRODUCTION
The Potential Market

1. Potential market is the part of the total population that has shown
some level of interest in buying a particular product or service. Potential
market is also called Total addressable market (TAM) (MBA Skool Team,
2018).
2. A potential market is the part of the market you can capture in the
future. It includes the demographic groups that are not currently your
customers but could become customers in the future (Lake, L, 2019).
3. Market potential is the total demand for a product in a given business
environment (Bhasin, H., 2018).

The Importance of Potential Markets (Lake, L., 2019)

• Potential markets are an important part of a business's future

growth.
• Ensure the future of your business by identifying new customers.

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 CARAMOAN COMMUNITY COLLEGE
Caramoan, Camarines Sur
A/Y 2021-2022
2nd Semester MC TLE102-BEEd3ABCD-OVA
• Think proactively about ways for your business to grow and
change.
• Show the potential of your business to investors or collaborators.
• Increase your revenue.
• Create a plan B that will weather changes in the economy or
market.

How to Identify Your Potential Markets (Lake, L., 2019)

• Consider every target demographic that you currently sell to, as

well as those you have not yet targeted. Identify what they have in
common with each other, new milestones that they will encounter in
their lives that will impact their buying patterns, and where they
overlap or diverge from your current customers.

Ask yourself these questions that will help you identify both new ways to
market your current products or services, as well as new products and services
that you can begin selling.

• What other products do my customers need now?

• What related products will they need in the future?
• Who else could make use of the products I am selling now?
• What demographic information does that new group have in
common with my current customers?
• What demographic information does that new group have in
common with
each other?
For example, a business that makes face masks and PPEs could
identify potential markets such as:
• Hospitals and other health related industries whose employees are
prone to COVID -19 virus and other viruses.
• Business industries and other organizations who want to ensure
the health condition of their employees.
• Employees and workers who need to report to work to earn
income.
• Households who needs to go out for their necessities.

Note: Depending on the size and age of your company, as well as your
industry, you may have a clear picture of the potential markets that are
available.

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 CARAMOAN COMMUNITY COLLEGE
Caramoan, Camarines Sur
A/Y 2021-2022
2nd Semester MC TLE102-BEEd3ABCD-OVA

Reaching Your Potential Market (Lake, L., 2019)

Once you've identified and chosen a potential market to begin targeting,

you will need new marketing strategies in place to communicate with them.
Use this profile to identify:
• The demographic information that people in a group have in
common.
• The best forms of media to reach them.
• How they prefer to shop and make purchases.
• The concerns, struggles, or problems that you can help them
overcome.
• What values matter to them, both in everyday life and when
shopping.
• The language that resonates with them.

The figure below depicts what is a potential market with respect to the
total population and how it can be converted to a penetrated market:

MBA Skool Team, 2018

Available Market
• Prospects who are willing and capable (have sufficient resources)
buyers, and have access to a particular market or service
(www.businessdictionary.com).
• Defined as the number of people who are both willing and capable
of buying a particular product or service in a particular market (MBA
Skool Team, 2020).

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 CARAMOAN COMMUNITY COLLEGE
Caramoan, Camarines Sur
A/Y 2021-2022
2nd Semester MC TLE102-BEEd3ABCD-OVA
Target Market

 Refers to a group of potential customers to whom a company wants to sell

its products and services. Target markets are generally categorized by
age, location, income, and lifestyle. Defining a specific target market
allows a company to home in on specific market factors to reach and
connect with customers through sales and marketing efforts. (Kenton,
W., 2019).

Penetrated Market

 A set of customers or clients who are already using a particular product or

service. A penetrated market means that the potential users of a
product or service are aware of it, and in many cases are active
consumers of it.
(www.businessdictionary.com).

The size of a potential market helps a company understand the level of

investment it should make further in the market, while taking into
consideration other factors. If the potential market is very small, it means
there is a very small fraction of the total population showing any interest in the
product or category. This means that it is better that the company doesn’t
invest further in the product or category because people won’t buy it. If the size
of the potential market is large, it means that there is a huge fraction of the
total population which is showing interest in the product, so further
investment can be made on the product development or modification,
marketing, promotions etc. The size of the potential market gives an estimate
of what all a company should do and how much it should invest (MBA Skool
Team, 2018).
The Market Need

1. Need - A motivating force that compels action for its satisfaction.

Needs range from basic survival needs (common to all human beings)
satisfied by necessities, to cultural, intellectual, and social needs
(varying from place to place and age group to age group) satisfied by
necessaries (www.businessdictionary.com).
o A driver of human action which marketers try to identify,
emphasize, and satisfy, and around which promotional efforts are
organized (www.businessdictionary.com).
2. Market - A Market is a place where two parties can gather to
facilitate the exchange of goods and services. The parties involved are
usually buyers and sellers. The market may be physical like a retail
outlet, where people meet face-to-face, or virtual like an online

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 CARAMOAN COMMUNITY COLLEGE
Caramoan, Camarines Sur
A/Y 2021-2022
2nd Semester MC TLE102-BEEd3ABCD-OVA
market, where there is no direct physical contact between buyers and
sellers (Kenton, W. & Boyle, M., 2020).
o A market does not refer to a particular place but it refers to
a market for a commodity or commodities. It refers to an
arrangement whereby buyers and sellers come in close contact
with each other directly or indirectly to sell and buy goods
(Shaikh, S., retrieved 2020).
o A market is any place where sellers of particular goods or
services can meet with buyers of those goods and services. It
creates the potential for a transaction to take place. The buyers
must have something they can offer in exchange for the product
to create a successful transaction (Moffatt, M., 2019)

Your market consists of (Stull, C., Myers, P.& Scott D.M. (2008) as cited in:
https://learn.marsdd.com/):
Existing customers: People who have already purchased your product.
Prospects: People who have not yet purchased your product but are
considering it.
Target market users: People in your target market who are not
currently looking for a solution.

Define the Market Need for Your New Business

Why is it important to clearly define market needs?

The market now demands that your business align to their needs. In
order to properly align your marketing efforts ‒ and your content, in particular
‒ to what buyers need, you have to have a clear understanding of the many
intricacies, pains and pressures within your market. To achieve such
alignment, the ability to define market patterns, needs, interests, preferences,
etc. for a comprehensive view of the buying process is critical
(www.aberdeen.com).
Below are ways to define your market (Lancaster SCORE (2010):

• Consider whether the business offers a new solution to an old

problem or complements an emerging trend.

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 CARAMOAN COMMUNITY COLLEGE
Caramoan, Camarines Sur
A/Y 2021-2022
2nd Semester MC TLE102-BEEd3ABCD-OVA
• Have a clear picture of your target market.
• Determine the benefits that your product or service offers.
• Examine industry data that can confirm whether there is a
sustained, growing demand for your product or service.
• Identify the percentage of market share that it is realistic for you to
capture. The more competition you have, the lower the margins will
be.
• Consider how realistic your pricing is. How can you present your
product or service to potential customers so that it appears to be a
good value, while still affording you a healthy profit?

ACTIVITIES

Activity 1. Read and analyze the statements below about “Market”. Determine
whether the statement is TRUE OR FALSE. Write TRUE if the statement is
correct and write FALSE if otherwise. Write your answer in the space provided.

__________1. A market is any place where two or more parties can meet to
engage in an economic transaction—and should only involve legal tender.
___________2. Market includes retail stores and other similar businesses that
sell individual items to wholesale markets selling goods to other distributors
but may not be virtual.
___________3. Market refers to the whole area of operation of demand and
supply. ___________4. A market signifies any arrangement in which the sale and
purchase of goods take place.
___________5. The market establishes the prices for goods and other services.

Activity 2. Read and analyze the given situations below. Identify whether this refers
to existing customer, prospects, or target market users. Write your answer in
the space provided.
1. Students need to 6. Arlene, a student of a public
buy a tablet/ school, needs mobile data in
laptop for school order to comply with the
requirements. requirements in school.
2. Ana used to buy 7. Hospitals need facemasks
shampoo. and PPEs.
3. Households living in 8. Mike, a sari-sari store owner,
a remote area. wants to go online selling.
4. Martha, a call 9. Jeep drivers need to modify
center agent, needs their jeeps for public
a Wi-Fi. transportation.
5. Karlo, a factory 10. Ella needs to buy her
worker, needs vitamin C to boost her immune

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 CARAMOAN COMMUNITY COLLEGE
Caramoan, Camarines Sur
A/Y 2021-2022
2nd Semester MC TLE102-BEEd3ABCD-OVA

transportation. system.

Activity 3. MAKE MEANING- INTERNET ASSSISTED ACTIVITY

DIRECTIONS: Give the meaning of the following word/phrase in each item.

You may use the internet to define the given word/phrase. Write your answer
in the space provided.

1. Customer vs. consumer

2. Demographic group
3. Market share
4. Market size
5. Marketing strategies

REMEMBER
• Potential market is the part of the total population that has
shown some level of interest in buying a particular product or service.
Potential market is also called Total addressable market (TAM) (MBA
Skool Team, 2018).
• Available Market are prospects who are willing and capable (have
sufficient resources) buyers, and have access to a particular market or
service (www.businessdictionary.com).
• Target Market refers to a group of potential customers to whom a
company wants to sell its products and services. Target markets are
generally categorized by age, location, income, and lifestyle (Kenton, W.,
2019).
• Penetrated Market is a set of customers or clients who are
already using a particular product or service
(www.businessdictionary.com).
• Need is a motivating force that compels action for its satisfaction.
Needs range from basic survival needs (common to all human beings)
satisfied by necessities, to cultural, intellectual, and social needs
(varying from place to place and age group to age group) satisfied by
necessaries
(www.businessdictionary.com).
• A Market is a place where two parties can gather to facilitate the
exchange of goods and services (Kenton, W. & Boyle, M., 2020).
• Existing customers are people who have already purchased your
product.

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 CARAMOAN COMMUNITY COLLEGE
Caramoan, Camarines Sur
A/Y 2021-2022
2nd Semester MC TLE102-BEEd3ABCD-OVA
• Prospects are people who have not yet purchased your product
but are considering it.
• Target market users are people in your target market who are not
currently looking for a solution.

CHECK YOUR UNDERSTANDING

Considering the ways to define your market, evaluate the situations below
using 1 to 5 rating scale, 5 as the highest and 1 as the lowest. Justify your
answer in 1 to 2 sentences only. Write your answer in the space provided.

Situations Rating Justification

To produce face masks
and PPEs.
To open on-line
business for fashion
accessories.
To open a massage
center.
To open a computer
shop.
To open a carinderia

POST - TEST

Identification. Read and analyze the statements below and identify whether
this refers to potential market, available market, target market, or
penetrated market. Write your answer in the space provided.

_________1. Active consumers of a product.

_________2. People who are both willing and capable of buying a particular
product or service in a particular market.
_________3. It is the part of the total population that has shown some level of
interest in buying a particular product or service.
_________4. It includes specific customers to whom a company directs its
marketing efforts.
_________5. Customers or clients who are already using a particular product or
service.

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 CARAMOAN COMMUNITY COLLEGE
Caramoan, Camarines Sur
A/Y 2021-2022
2nd Semester MC TLE102-BEEd3ABCD-OVA

MATCHING TYPE. Match the definitions in Column A with the word/phrase in

Column B. Write your answer in the space provided.

Column A Column B
1. It is a company’s marketing goals and objectives combined A. Market
into a single comprehensive plan.
2. Refers to a person or organization that uses a commodity or B. Target Market
service.
3. This is an area or arena in which commercial dealings are C. Potential Market
conducted.
4. This is used to give a general idea of the size of a company D. Need
in relation to its market and its competitors.
5. This is one part of the total market for a good or service. E. Demographic group
6. It is also called Total addressable market (TAM). F. Market Strategy
7. A person or business that purchases a commodity or G. Market size
service.
8. Circumstances in which something is necessary, or that H. Customers
require some course of action; necessity.
9. The study of the characteristics of human populations, I. Consumers
such as size, growth, density, distribution, and vital
statistics.
10. The number of buyers and sellers in a particular market. J. Market share

REFLECTIVE LEARNING
If you’re thinking about starting a business, most likely you have
dreamed of one that involves your interests. But, what does the market need or
want? Do you know who is buying what and how much, or how, where and
why they are buying those goods or services already?

Determining the marketability of your start-up business is typically done

in the context of creating a business plan and performing an analysis of your
competition. It requires research into areas of marketability.

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 CARAMOAN COMMUNITY COLLEGE
Caramoan, Camarines Sur
A/Y 2021-2022
2nd Semester MC TLE102-BEEd3ABCD-OVA

E-SITES
To further explore the concept learned today, please watch the video
about “Understanding Customers need” @www.youtube.com

REFERENCES
Websites

1. Available Market. Retrieved from:

http://www.businessdictionary.com/ definition/available-
market.html
2. Bhasin, H. (2018). How to determine Market potential for any
product or service? Retrieved from:
https://www.marketing91.com/determine-marketpotential/
3. Definition of need. Retrieved from:
http://www.businessdictionary.com/ definition/need.html
4. How to Define Market Needs to Align Content Effectively. Retrieved
from:
https://www.aberdeen.com/cmo-essentials/define-market-needs-
aligncontent-effectively/
5. Kenton, W. (2019). Target Market.
Retrieved from:
https://www.investopedia.com/terms/t/target-market.asp
6. Lake, L., (2019). The definition and importance of potential
markets. Retrieved from: https://www.thebalancesmb.com/identifying-
opportunity-in-newpotential-markets-4043634
7. Lancaster SCORE (2010). Define the Market Need for Your New
Business. Retrieved from:
https://scorelancaster.wordpress.com/2010/01/18/define-themarket-
need-for-your-new-business/
8. MBA Skool Team, (2020). Available Market.
Retrieved from: https://www.mbaskool.com/business-
concepts/marketing-and-strategyterms/11747-available-market.html
9. Penetrated Market. Retrieved from:
http://www.businessdictionary.com/ definition/penetrated-market.html

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