St. Augustine’s Academy of Patnongon, Inc.

Real St.,Poblacion, Patnongon, 5702 Antique, Philippines

Grade 12

Entrepreneurship

Quarter 1
MODULE 1Part4

Entrepreneurship

Mr. Stephen Matthew M. Bangiban, LPT.

Subject Teacher

NOTE: PLEASE USE PAD PAPERS WHEN ANSWERING THE ACTIVITIES.DO NOT WRITE ANYTHING ON THIS MODULE
 This module was prepared and reviewed by the teachers of St. Augustine’s
Academy of Patnongon, Inc. We are encouraging the parents to cooperate with us to
successfully deliver learning to their children. We encourage the parents to help us by
giving feedback, comments and recommendations to staapi50@gmail.com or contact
the following for individual concerns:
Grade 7 Advisers Grade 8 Advisers
09167735045- Miss Chenny L. Magbanua 09269323314- Mrs. Marlyn I. Alvaniz
09554672066- Mr. Danimar Mateo 09062643084- Mr. Norielle S. Oberio
09066293078- Mr. Rio Z. Protacio 09067824564- Mr. Glennford N. Quinto

Grade 9 Advisers Grade 10 Advisers

09751067140- Miss Zyna Lyn Mondido 09266829343- Mr. Mark Joseph T. Reyes
09753066859- Miss Locsin Joy Saturno 09284321181- Mr. Ronie M. Antiza
09164751533- Mr. Ricardo S. Pancubila 09263146051- Mr. Danny C. Francisco

Grade 11 Advisers Grade 12 Advisers

09955629145- Mr. Jerrald D. Estaris 09950345737- Mr. Darrel A. Fadrillan
09263146051- Miss Darlene Joy Mena 09164610168/09171372250- Mr. Gaudencio J. Lacaba

09186839578- Mr. Stephen Matthew Bangiban 09177237938- Mr. Robert N. Acuisa, M.Ed.-
Principal

We appreciate your feedback and comments.

Lesson 3 UNDERSTANDING THE MARKET

4days
Goals:
At the end of the chapter you will be able to:
Recognize a potential market
• Analyze the market need
• Determine the possible product/s or service/s that will meet the need;`
• Screen the proposed solution/s based on viability, profitability, and customer requirements;
and Select the best product or service that will meet the market need.
“What I know”
Essay: Answer the question
What is a market for you?
“What is it”
A. MARKET (LOCALITY/TOWN)
All businesses have risks and once an entrepreneur develops a business concept and
model, the market is one thing they must consider. The key to success is taking the time to
thoroughly understand the market landscape, which means investing in market research to
analyze all aspects of the market.
What is the Market?
A market is any place where makers, distributors or retailers sell, and consumers buy. It is to
the whole group of buyers for a good or service. Businesses that operate in markets are
competitors of other businesses as well. The other companies or rivals offer similar goods or
services. Markets are composed of the following:
 Buyers
 Sellers
 Institutions and infrastructure
 Others: importers, processors, storage owners, wholesalers, credit suppliers, government
officials and policies
Markets are where buyers and sellers come together to obtain information and exchange
goods and commodities. A commodity is anything that is tangible, that has value and can be
exchanged for a monetary value. A market chain includes all levels of the market and people
that have a role in the distribution and transformation of the good and commodity.
Why are Market Important?
 Markets are a part of everyone’s lives
 People rely on markets for food, essential goods and services
 It provides access to paid work and mechanisms for selling commodities and services
 It is a source of livelihood
 Impairing markets can have negative impacts, particularly on the poor
 Important to understand markets, so we know if our programs are strengthening or
harming markets

Customer

Retailer

Wholesaler

Processor In a Market Chain

commodities flow from
producers to consumers
Farmer

The illustration above shows the market chain and how a commodity is produced from the
farmer to buyers. It is important to understand how a business starts and the process it will
go through in order to provide the goods and services to customers. This is also how the
cost products are regulated since it goes through a process of production.

The market chain must be understood from the production to consumption.

5 Market Concepts:
1. Production Concept - Production Concept is a principle that states that the customers
would always think of acquiring products that are less expensive but reliable in quality.
The production concept advocates that more production leads to a bigger sale. In countries
where labor services are way cheaper, production can be maximized while minimizing the
costs increasing the production efficiency.
The Philippines, India and China are examples of the Production Concept of marketing.
But China among all others made sure that it increases its overall production through manual
labor available by mass producing and distributing products worldwide while
India on the other hands focused on producing IT practitioners and are working worldwide.
2. Product Concept - It is the understanding of the dynamics of the product in order to
showcase the best qualities and maximum features of the product. The product concept
states that consumers will prefer products that have good quality. consumers favoring
products that offer the most quality performance or an innovative feature. For instance,
a comparison of electronic companies offering similar products.
3. Selling Concept - It proposes that customers, be individual or organizations will not buy
enough of the organization's products unless they are persuaded to do so through selling
effort. The organization must, therefore, undertake an aggressive selling and promotion
effort.
4. Marketing Concept - It holds that the key to achieving its organizational goals (goals of
the selling company) consists of the company being more effective than competitors in
creating, delivering, and communicating customer value to its selected target customers.
5. Societal Marketing Concept - This concept holds that the organization’s task is to
determine the needs, wants, and interests of target markets and to deliver the desired
satisfactions more effectively and efficiently than competitors
B. THE COMPETITORS
It is important to know your competitors and what they have to offer the consumers. A
competitor is any person or entity which is a rival against another. In terms of business, a
competitor is a company in the same industry or a similar industry which offers a similar
product or service. Knowing who your competitors are when setting up a business can help
you to make your products, services and marketing stand out from the others. It will enable
you to set your prices competitively and help you to respond to rival marketing campaigns
with your own initiatives. Having to know who you are competing with, helps you create
marketing strategies that take advantage of your competitors' weaknesses, and improve
your own business performance and we cautious of any threats or help you to be realistic
about how successful the business can be.
C. PRODUCTS AND SERVICES AVAILABLE IN THE MARKET
Thinking before deciding what to sell or what services to offer the consuming public is the
key to a successful entrepreneurship. Having the sense of for seeing what is there to come
and 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 the business’s success or failure.
There is a lot of difference in the products or services consumed at present from those that
we’re being consumed five years ago. There are unlimited opportunities for people to enter
the marketplace and compete effectively with a new product or service that could be better in
some way than what is already being offered by your competitors. The innovativeness is a
skill at choosing that product or service that may gauge a business success.
TARGET MARKET
A target market is a group of consumers or organizations that is most likely willing to buy
a product or service and the most sensible thing to do by the company is to focus its
marketing efforts on reaching these target market. Marketing to these buyers is the most
effective and efficient approach to ensure products will be sold rather than marketing to
everyone which is inefficient and expensive.
There are several different ways to define your target market, based on different
characteristics:
a. Consumer or business – Start by clarifying if the business have a B2B or business-to-
business form of transaction or or a B2C, business-to-consumer offering.
b. Geographic – Geographical is based on or derived from the physical features of an area.
Local stores may find that their most likely customers are only within a two mile radius of
their store. This target market is defined geographically, based on where they live, work or
do business.
c. Demographic – is when pertaining to a particular sector of a population. When describing
customers demographically, target market in defined in terms of their gender, age, income
level, education level, marital status, or other aspect of their life.
d. Psychographic – is a qualitative methodology used to describe consumers on
psychological attributes. Sometimes customers do not fit into a particular group based on
outward characteristics, but more based on internal attitudes and values. These are
psychographic characteristics.
e. Generation – is all of the people born and living at about the same year or era, regarded
collectively. Many companies today define their target market based on which generation
they were born in, such as baby boomers, Gen Y, Gen Z.
f. Cohort – it is a group of people banded together or treated as a group. Other companies
find that their target market is better defined by looking at cohorts, or groups of people who
had similar experiences during childhood, such as being raised by a single mom or attending
boarding school.
a. Life stage – Other target markets are more alike because of the stage of life they are in,
for example, retirement, newly married, newly divorced, or parenting young children.
b. Behavioral – Another approach is simply based on frequency of use, or behavior, which
could be a good choice for hair salons, car wash, or stay station rentals.
D. VALIDATING COSTUMERS CONCERN THROUGH INTERVIEW, FOCUSED
GROUP DISCUSSION AND SURVEY
Interview, focused group discussion and surveys are primary research tool that helps collect
new or original information. The benefit of conducting your own research, rather than using
secondary information such as the internet is that you can customize questions specifically
needs response and solution to a business concern, gathering a more in depth information.
Surveys
Surveys are fixed sets of questions, which are usually used to collect quantifiable information
such as the percentage of how people satisfied about a specific product or service. The
questions in surveys may contain the following:
 multiple choice
 true/false or yes/no
 rankings or ratings (e.g. 1-5, or strongly agree/disagree scales). There can also be an
open-ended question that give people the chance to answer with a statement; however,
these tend to be better suited to qualitative research methods such as focus groups and
interviews where you can ask follow-up questions to get more information.
Surveys are usually most effective when carried out face-to-face, but can also be completed
over the phone, using the net or even snail mail or postal.
It is important to avoid asking too many questions but make it concise and clear. This will
help you get more useful information and reduce the chances of participants to losw interest
or the notion to give misleading answers.
Focus groups and interviews
This is considered as the most effective for qualitative research, as it explore people's
opinions and attitudes. For instance, it asks questions like how they feel about your products
and what improvements they would like to see in your business. This is more specific thus
you will get a more concise answer. Focus groups and interviews are based on a set of
questions or discussion points. Sometimes they might include visual concepts and even
product samples as trial.
When preparing for focus groups and interviews, you need to develop a list of questions and
key points so that you can have a productive conversation with your participants. To get the
most out of a focus group or interview and plan the location as to where to conduct the focus
group or interview and remember these:
 ask open-ended questions – this cannot be answered with simply a yes or a no. For
=instance, instead of asking, 'are you happy with our products?' the question must be
'which of our products are you happy with and why?')
 repeat participants' answers to make sure you understand what they are saying
 ask follow-up questions if you need more information about a participant's answer.
 Activities/Task (Avoid erasures)
Lessons 4 –THE IMPORTANCE OF MARKET MIX
Goals:
At the end of the chapter you will be able to:
. Recognize the importance of marketing mix in the development of marketing strategy
Describe the Marketing Mix (7Ps) inrelation to the business opportunity
vis-à- vis:
Product;
Place;
Price;
Promotion;
People;
Packaging; and
Positioning
Develop a brand name
THE 7P’S
The marketing mix is a familiar marketing strategy tool, which as you will probably know, was
traditionally limited to the core 4Ps of Product, Price, Place and Promotion. The 7 Ps are a
set of recognized marketing tactics, which you can use in any combination to satisfy
customers in your target market. The 7 Ps is controllable, but subject to your internal and
external marketing environments. Combining these different marketing tactics to meet your
customers' needs and wants is known as using a 'tactical marketing mix'.
A. PRODUCT
Product refers to what the business is selling which may include all of the features,
advantages and benefits that your customers can benefit from buying your goods or
services. The product should do what the customer wants or needs it to do. And in order to
design or identify an appropriate product, the business should conduct thorough research to
know the requirements of the customer and even the buying habits of target audience. When
marketing your product, you need to think about the key features and benefits your
customers want or need.
B. PLACE
Place is where your products and services are seen, made, sold or distributed. The product
should be available where the customer expects to find it. Access for customers to your
products is key and it is important to ensure that customers can find what you are selling,
and it is important to identify how the product should be presented in each context.
The product can be set apart from competition through the design of retail space and by
using effective visual merchandising techniques.
C. PRICE
This refers to your pricing strategy for the products and services and how it will affect your
customers. The product should be sold at a price considered to be good value-for-money.
You should identify how much the customers may accept and prepared to pay, how much
mark-up you need to cater for overheads expenses, and know your profit margins and
payment methods, and other costs.
To attract customers and retain your competitive advantage, you may also wish to consider
the giving discounts and seasonal pricing.
D. PROMOTION
Promotion is a marketing tactic. These are the promotional activities you use to make your
customers aware of your products and services, including advertising, sales tactics,
promotions and direct marketing. The product should be promoted to the appropriate
audience using an appropriate channel, like different advertising methods.
E. PEOPLE
When you provide excellent customer service, you create a positive experience for your
customers. So, the team involved in the delivery of the project should have the skills and
qualities needed to ensure the business’ success. The people refer to everyone involved like
the staff and salespeople who work for the business. It is important to have a competitive
advantage by ensuring to recruit the right people and providing a proper training to develop
their skills and retaining good staff.
F. PACKAGING
How a product is presented, how the outer appearance represents the product is the first
thing a prospective customer will see and consider. It also serves as a protection from
physical damage due to environmental factor. It can be a tool use to transmit message or
information to buyers about the product such as ingredients used, expiration and other
pertinent information. The packaging is also a convenient way to handle the transportation of
product and securing it to ensure no tampering is done to preserve it’s quality.
G. POSITIONING
Market Positioning refers to the ability to influence consumer view regarding a brand or
product relative to competitors. The objective of market positioning is to establish the image
or identity of a brand or product so that consumers perceive it in a certain way. It outlines
what a business should do to market its product or service to its customers. In positioning,
the marketing department creates an image for the product based on its intended audience.
This is created using promotion, price, place and product.
Once the business has developed its marketing strategy, these 7P’s should be used to
repeatedly evaluate and reevaluate the business activities. As products, markets, customers
and needs change quickly, revisiting these seven Ps will the business is on the right track
and achieve the maximum results in the marketplace.

(Write your answer on a one whole sheet of paper)

“What I have learned”
I. Alternate response- Write true if the statement is correct and false if the statement is
wrong.
_______1. A market is any place where makers, distributors or retailers sell, and consumers
buy.
_______2. Market is not part of everyone’s lives.
_______3. Competitor is any person or entity which is a rival against another.
_______4. Product refers to what the business is selling
_______5. Promotion is a marketing tactic
“What’s more?”
Enumerate the 7Ps.
“What I can do”
III. Draw your own market chain for the product that you like.
“Let’s See” Assessment
Alternate response- Write true if the statement is correct and false if the statement is wrong.
1. The product should not do what the customer wants nor needs it to do.
2. People rely on markets for food, essential goods and services.
3. A target market is a group of consumers or organizations that is most likely willing to buy
a product or service
4. The product should not be promoted to the appropriate audience using an appropriate
channel.
5. Generation is all of the people born and living at about the same year or era, regarded
collectively.
6. Cohort is a group of people banded together or treated as a group.
Multiple Choices: Write the letter that corresponds to the correct answer.
Choices for 7 to 10
A. Market B. Production Concept
C. Product Concept D. Marketing Concept
7. It is the understanding of the dynamics of the product in order to showcase the best
qualities.
8. A principle that states that the customers would always think of acquiring products.
9. Where buyers and sellers come together to obtain information and exchange goods and
commodities.
10. It holds that the key to achieving its organizational goals.
Choices 11 to 15
A. Product B. Promotion
C. Place D. Price
11. You identify how much the customers may accept and prepared to pay.
12. It refers to what the business is selling.
13. It is where your products and services are seen, made, sold or distributed.
14. This is a marketing tactic.
15. You advertise your product.
“Answer keys”

Pretest Activity/Task1 Activity/Task2 Task3

Answer may vary 1. True Product; Answer may vary
2. False Place;
3. True Price;
4. True Promotion;
5. True People;
Packaging
Positioning

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References:
FnB Ebook