Animation NC II

Animation
Quarter 1 – Module 2:
Environment and Market
 What I Need to Know

This module was designed and written with you in mind. It is specialized module
designed to develop and hone knowledge, skills, and attitudes of students on
competencies leading to Animation National Certification II (NCII). It aims to equip
the students with computer skills and knowledge needed to be competent individuals
in the field of animation. The scope of this module permits it to be used in many
different learning situations. The language used recognizes the diverse vocabulary
level of students. The lessons are arranged to follow the standard sequence of the
course. But the order in which you read them can be changed to correspond with
the textbook you are now using.

The module is divided into lessons, namely:

 Market (locality/town)
 Key concepts of Market
 Players in the Market (Competitors)
 Products and services available in the market
 Market (customer)
 Key concepts in identifying the consumer
 Consumer Analysis

After going through this module, you are expected to:

1. Identify the players/ competitors within the town;
2. Identify the different products/ services available in the market;
3. Identify the profile of potential customers
4. Identify the customer’s needs and wants through customer analysis
5. Conduct consumer/ market analysis

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 What I know

Try to take the first challenge in this module, the pre-assessment. Write the
chosen answer on a separate sheet of paper. This will test your knowledge and assess
your experience related to personal entrepreneurial competencies.

True or False Direction: Read each statement below carefully. Write TRUE on the
line before the number if you think the statement is correct and FALSE if the
statement is wrong.

_______ 1. Entrepreneur is one who organizes, manages, and assumes the

risks of a business or enterprise one who organizes, manages, and
assumes the risks of a business or enterprise
_______ 2. Culture affects Marketing Environment
_______ 3. Government regulations is not a major concern in starting your own
business.
_______ 4. Social status can greatly affect your market.
_______ 5. The physical environment of your market impacts the flow of your
business.
_______ 6. An entrepreneur needs to seek approval from the Government before
running his business.
_______ 7. Considering the value of your targeted market’s culture is not
necessary when making a business plan
_______ 8. Identifying the risk would greatly help in coming up with possible
solutions to the problems that may arise in the company.
_______ 9. Demography refers to the size or population of your potential market
and the diversity of their socio-economic grouping.
_______ 10. Labor is one of the internal environment factors.

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 Lesson

2 Environment and Market

What’s In

Building your own empire or whether working under a company, to

identify and study the market in which you are interested is indispensable.
Conducting ample amount of time in research would result in to better outcome.
Having enough idea on what market you are going to venture would lessen the risk
and increase the probability of achieving more. This may help you to have a further
understanding on the market that you plan to enter. Making adjustment and
modifications in your ideas and plan would be much easier.

Animation Industry in the Philippines is currently on a fast phase. More and

more Filipino artist are given attention in the international market. Honing one skill
is one of the basic keys in succeeding in this type of market. Assuming that you
chose to be a boss of your own company you need to fully grasp the environment and
market of the physical set up of your own business. Finding the appropriate
environment for your business must be considered.

What’s New

Business environment is not just about the physical location, the

environment, neither the amount of money you are going to invest on it but also how
would you like to run or operate your business internally and externally, tangible
and intangible.

Opportunities and threats exist in the external environment. Opportunities

relate to the market, new technologies, and external factors, such as government
policies, climate, and trends. Threats replace what the competitors are doing. It also
includes legal and other constraints.

Now that you have read some important considerations to explore to be

successful in any business, you are now ready to explore more and more about the
environment and market.

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 What is it

In this module you will learn to value the importance of the market, key
concepts of the market, players of the market and the products and services available
in the market.
The following are guide questions which covers the entire module. Write your
answers on your notebook.
Directions: Read and study the guide questions below. Use a separate sheet of
paper to write your answer.
1. How does one determine the product or services to be produced and/or to be
provided to the target customers

2. How does one select an entrepreneurial activity?

3. When can one say that a certain product has “value?”
4. Does applying creativity to your product or services important? Why?
5. How can one effectively respond to the needs of the target customer?
6. From the viewpoint of business owner, discuss the importance of scanning the
environment and market in generating business ideas.
7. Using self-assessment, explain the level of your confidence in formulating a
business idea.

Environment and Market

 Environment Factors
The following are essential environment factors an entrepreneur should
consider when setting up a business:

1. Natural and physical environment – refers to the actual, physical location of

the business, whether it is a store or an office. Ideally, your business address
should be situated in a location that will be clearly visible and as much as
possible, in close proximity to your target market. It should be located in an
area that is conducive to transact business, ambient surrounding should be
appropriate; and easily accessible to your target or potential market.
2. Demography – according to Cambridge Dictionary it is the study of changes
in the number of births, marriages, deaths, etc. in a particular area during a
period of time. These factors would greatly influence the services or products
that you desire to offer in your business. This may assist in modifying the
business plan you have in mind, whereas having this data would give you a
concrete idea on what products and service are needed in that area.
3. Culture – one of the factors that requires a high attention from the
entrepreneur which may help him/her to produce products and services to be
offered in the targeted market because as it is defined, culture refers o he
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 people’s way of life. To ensure a continuous and good flow of business it is
necessary to conduct a research as to what would be the products that would
match the people’s culture.
4. Government regulations – the first thing that you need to do in establishing
your business is to be authorized by the government. This will allow you to
freely run and dispense your products and services. Acquiring appropriate
permits to the establishment or store, any safety and sanitary regulation and
procedure that has to be practiced.
5. Economy – refers to all the external economic factors that influence buying
habits of consumers and business and therefore the performance of a
company. These factors are often beyond a company’s control, and may be
either large scale (macro) or small-scale (micro).
As an entrepreneur, being sensitive and observant to economic indicators may
prove to be quite essential and useful especially when making critical business
decisions.

Generally, these indicators, among others are:

 Inflation – the increase of the general price of goods and services that be
sustained over a period of time, usually annual.
 Gross domestic Product (GDP) – one of the primary indicators about how well
or poor a country’s economy is doing within a certain period, usually annual.
 Unemployment rate – the percentage of people who are actively seeking a job
but could not find one

Product Conceptualization

This refers on how to understand the needs and wants of your targeted
market. You need to develop your own concept to better understand and have a
concrete idea for your business. Here’s an example on how to conceptualize for
your
product.

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Here are some basic yet very important considerations that can be used to generate
possible ideas for business:

Read magazines,
news articles,
and other
Examine the Examine the Examine how the Examine the
publications on
existing goods present and needs are being available
new products
and services future needs satisfied resources
and techniques
or advances in
technology.

What’s more

To enhance your understanding of the topic previously presented, you will be

tasked to form a group and arrange an interview with a successful entrepreneur or
practitioner. You have to document this interview and present this to the whole class
for reflection and appreciation.

1. How did you identify your customers?

2. What were your considerations in selecting your customers?

3. Explain how your product or service became unique to other products.

4. Did you consult somebody before you engaged in this business? Cite / give sample
insights that you gained from the consultation.

5. What were your preparations before you started the actual business?

6. What creative and innovative techniques did you adapt in the development of your
product or service? What was the effect of the innovative techniques to the sales and
profits of your business?

7. What strategy did you consider to create a unique selling proposition to your
product or service?

What I have learned

Environment and Market plays a vital role in the animation industry. Before
animation started to bloom in the Philippines multiple business man conducted
research on the Philippine Market, whether animation is a good investment for the

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near future. It is necessary to have a concrete plan before venturing in to a business.
A lot of factors affect the business world on of this is the culture that we have. The
best practice one must acquire is having a sound judgement on to the matters
concerning the marketing environment for the targeted products and services one
may offer in a certain location.

After many years of study and research business man from inside and outside
the country decided to invest in the animation industry in the Philippines. It is due
to the uprising and always evolving culture of each generation.

What I can do

Directions: Conceptualize your own product sing the Product Conceptualization

Plan.

Assessment

Multiple Choice: Circle the letter that corresponds to the correct answer.

1. This are the factors that are closely associated with the operations of the
business and influences its functioning.
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 a. Micro Environment
b. Macro Environment
c. Internal Environment
d. External Environment
2. Which of the following is not included in the external factors under
marketing environment?
a. Political
b. Social
c. Technological
d. Governmental
3. Which of the following is defined as an individual’s way of life?
a. Economical Standing
b. Social Standing
c. Culture
d. Perspective in life
4. Which of the following is defined as the study changes in the number of
births, marriages, deaths, etc. in a particular area during a period of time.
a. Economy
b. Demographics
c. Culture
d. Physical Environment
5. Which of the following is a vital part in where a company needs to
acquire permission before legally starting the business.
a. Technological Forces
b. Political Responsibilities
c. Government Regulations
d. Legal Measures

Additional Activities

List down all the markets available at your area or online. Identify the products and
services they offer and list down their strengths and weakness.

Name of Products/ Services Strengths Weaknesses

business Offered
establishment
1
2
3
4
5

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 Answer Key

What I know Assessment

1. T 1. A
2. T 2. D
3. F 3. C
4. T 4. B
5. T 5. C
6. T
7. F
8. T
9. T
10. T

References
1. 2016. Animation Volume 1: Innovative Training Works Inc. Rex Booksstore 3-
10 pp.
2. 2014. First Edition: Computer Hardware Servicing – Grade 10 Learner’s Material
2-6 pp.
3. ICTTECHTIPS. (March 10, 2018).”What is Personal Entrepreneurial
Competencies (PECs)”. Retrieved June 17, 2020. https://icttechtips.
4. wordpress.com/2018/03/10/what-is-personal-entrepreneurial-
competencies-pecs
5. Brandwatch.(November 24, 2016).“How to Conduct Analysis and
Customer Segmentation”. Retrieved June 18, 2020.
https://www.brandwatch.com/blog/how-to-writecustomeranalysis/
6. #:~:text=The%20purpose%20of%20undertaking%20customer,the%20needs%2
0of%20those%20customers.

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