Identifying Business Opportunities

through Market Scanning

Identify the Mystery Words

Arrange the jumbled words being described.

1. DSENE
2. NATWS
3. UBISENSS DIAE
4. TREMAK NSACNGIN
5. NOINATOIVN
6. VINOETNIN
7. KAMRET DMENAD
Identify the Mystery Words

Arrange the jumbled words being described.

1. DSENE - NEEDS
2. NATWS - WANTS
3. UBISENSS DIAE -BUSINESS IDEA
4. TREMAK NSACNGIN -MARKET SCANNING
5. NOINATOIVN -INNOVATION
6. VINOETNIN -INVENTION
7. KAMRET DMENAD -MARKET DEMAND
Needs and Wants: Business Opportunity

Basic needs are things that are essential for us and our well
being.
• Basic commodities for consumption
• Clothing and other personal belongings
• Shelter, sanitation, and health
• Education and skills-generation
• Relaxation and leisure
Needs and Wants: Business Opportunity

Wants are desires, luxury, extravagance that signify wealth

and an expensive way of living.
• Fashion accessories, shoes, clothing
• Travelling around the world
• Eatinf in an exclusive restaurant
• Watching movies, concerts, and plays
• Having luxurious cars
• Wearing expensive jewelry, perfume
Needs and Wants: Business Opportunity

The knowledge for the needs and

wants can serve as a measure for the
succes of your business idea as you
will have an idea which product or
service will generate more demand
from your target market.
Generating Ideas for your Business

1. Examine the existing goods and

services.
– Are you satisfied with product/service?
– What do other people who use the
product/service say about it?
– How can it be improved?
Improving pr enhancing an existing product or
service is known as innovation.
Generating Ideas for your Business

2. Examine the present and future needs.

-Look and listen to what customers,
institution, and communities are missing in
terms of goods and services.
Generating Ideas for your Business

3. Examine how the needs are being

satisfied.
-Needs for the products and services are
referred to as market demand. To satisfy
these needs is to supply the products and
services that meets the demands of the
market.
Generating Ideas for your Business

4. Examine the available resources around you.

- Observe what materials or skills are
available in abundance in your area. A business
can be started out of available raw materials by
selling them in a raw form and by processing
and manufacturing them into finished products.
Generating Ideas for your Business

5. Read magazines, news articles, and

other publications on new products and
techniques or advances in technology.
Selecting the Right Business Idea

1. Screen your ideas to narrow them

downto about five choices.
2. Trim down the five choices to two
options.
3. Choose between the two and decide
which business idea is worth pursuing.
Selecting the Right Business Idea
In screening your ideas, examine each one in terms of the following factors:
• How much capital is needed to put up the business?
• How big is the demand for the produc/service?Do many people need this
and continue to need it for a long time?
• How is the demand meet?Who are processing the products/services to meet
the need (competition or demand)? How much is the need is now being met
(supply)?
• Do you have background and experience needed to run this particular
business?
• Will the business be legal, not going against any existing or foreseeable
government regulation?
• Is the business in line with your interest and expertise?
Scanning the Market

Market Scanning is the process of continually and actively

monitoring the external environment in order to identify the
customer needs, anticipate competitive actions, and,
identify technological changes which will provide new
market opportunities or market disruptions.

It is important to constantly be probing and exploring the

external environment to identify significant changes and
explore competitive activity.
Factors to consider in Market Scanning (PESTLE)

• Political factors - things taht impact

your business from a government or
legal standpoint
–Income tax and other taxes
–Minimum wage laws
–Union influences
–National and local policies
Factors to consider in Market Scanning (PESTLE)

• Economic factors - are financial fluctuations

that are typically out of your control
–GDP loss or growth
–Inflation rate
–Company debt
–Income of potential consumers in your area
–Employee salary trends in the service
business industry
Factors to consider in Market Scanning (PESTLE)
• Social factors - refer to the cultural norms and attitudesof
your targeter demographic and that of your employees,
partners, competitions, etc.
– Customer age
– Cultural norms and traditions
– Population growth or decline
– Service career attitudes
– Diversity
– Religious influences
– Public health and safety
Factors to consider in Market Scanning (PESTLE)

• Technological factors - have a direct impact on

the cost of doing business an the efficiency of your
business.
–Automation opportunities
–Technology incentives, like tax credits
–Better equipment coming on the market
–Service business software updates
–Improvements to mobile devices and other
communications
Factors to consider in Market Scanning (PESTLE)

• Legal factors - will directly influence the

company’s operations of your business
right now.
–Consumer protection laws
–Various insurance laws and mandates
Factors to consider in Market Scanning (PESTLE)

• Environmental factors - refer to anything that can

impact your business from an ecological or
environmental standpoint.
–Environmental impact of service business pratices
–Geography
–Access by road, rail, air
–Waste management
–Local attitudes towards pollution
Evauation: How to Identify a Good Business Idea
Explain things to be considered when screening for a good business
ideas.
1. How much capital is needed to put up a business?
2. How big is the demand for the product/services?
3. How is the demand met?
4. Do you have the background and experience needed to run this
particular business?
5. Will the business be legal, not going any existing or foreseeable
government regulations?
6. Is the business in line with your interest and expertise?
Evauation: Household Needs and Wants

Conduct an interview to the members of your household.

Using the table below and fill in the data and ask your family
members as to what their needs and wants are.
Family Member Age Needs Wants