Prayer
REVIEW
Recognize
a Potential
Market
LEARNING TARGET
1. Learn and understand the sources of
opportunities for business.
2. Determine the essentials in the
entrepreneur’s opportunity seeking.
a. Identify market problems and
propose potential products or services
that will meet the market needs.
LEARNING TARGET
b. Know the problem in which a
business opportunity arises from.
c. Identify, screen and propose
solutions to meet the problem.
d. Select the best product or service
that will meet the market’s need with a
consideration of generating profit.
THE
ENTREPRENEURIAL
PROCESS
1. Opportunity spotting and
assessment.
This is the
beginning of the
process and is
considered the
most difficult.
2. Developing a business plan
• Entrepreneurs
should formulated a
business plan when
they have already
spotted and assessed
the opportunities for
market.
3. Determining the Capital Market
Careful calculation must be
applied in computing the
complete set of resources
needed and include only
those items that are
considered as the real
needs in venture creation
4. RUNNING THE BUSINESS
This is the part where
the entrepreneur
should use the
resources allocated for
the new venture.
The entrepreneur
should have a control
and monitoring system.
SCANNING OF MARKETING ENVIRONMENT
Scanning the Marketing Environment
it is the STARTING POINT of any
venture that involves understanding and
knowing the details of
macroenvironment , microenvironment
and internal environment.
THE 3s of Opportunity
Spotting and Assessment
S seeking the
Opportunity
It is the first step and
most difficult process
of all due to the
number options that
entrepreneur will
have to choose from.
1. MACROENVIRONMENTAL SOURCES
S OCIOCULTURAL
A. This represents the ECHNOLOGY
general environment T
where the entrepreneur E CONOMIC
can identify business E ENVIRONMENTAL
opportunities from and OLITICAL
where the future P
business is about to L EGAL
operate. E ETHICAL
SOCIOCULTURAL Factors
- Represents a general view of locality’s
Traditions
Customs
Beliefs
Norms
Perception
Technological Factors
•These are composed of
innovation of an existing
technology or invention
of new one mostly on
applied science and
engineering research
areas.
Economic Factors
•These factors play a
vital role in the
scanning or marketing
environment because
economic factors
directly affect any
business venture
Environmental / Ecological
Factors
•These factors should given
much importance in
conducting a business
especially when the world
has already suffered
severely from human
induced calamities.
Political Factors
•These factors
are mostly
induced by
government
policies and
administrations.
Legal Factors
•Related with political
factors.
•This are government
laws and regulations
that can be restrict or
allow business
activities
Ethical Factors
•These factors that
will serve as an
entrepreneur’s
guide on how to
be ethical running
the business
Demographic Factors
•These are the
characteristics of the
people in the target
market
B. Industry
• This is the source of
current trend on
what is happening in
the industry where
the future business
will belong to.
AGRICULTURE INDUSTRY FOOD INDUSTRY
C. NEW DISCOVERY OR KNOWLEDGE
•These are new
trends that can
be the core
business model
of a new
venture
D. FUTURISTIC OPPORTUNITIES
•These are projected
new opportunities
that can possibly
affect the new
business while it is
running.
2.MICROMARKET
a. Consumer preferences, interest and perception
b. Competitors
c. Unexpected opportunities from customers
d. Talents, hobbies, skills, and expertise.
e. Irritants in the marketplace such as deterrents,
problems. Complaints and delays.
f. Location
S creening the
s
Opportunity
It is the process of
cautiously
selecting the best
opportunity.
The entrepreneur should say NO to an opportunity if
it does not contain any of these business
opportunity elements
1. Has superior value to customer
2. Solves compelling problem, issue, a need, or a
want
3. Is a potential cash cow
4. Matches with the entrepreneur’s skills
resources and risk appetite.
O PPORTUNITY
A TTRACTIVENESS
T EST
1. THE “CONCEPT” AND THE
“STRATEGY”
2. OPPORTUNITY METRICS
•Market potential
Industry Highest Potential Lowest Attractiveness
or Market Description Potential Score
Potential Description
1.Market • Easily • Unclear
needs identifiable Market
market • Revenue
• Potential just one-
recurring time or
revenue from seasonal
the market • Market
• Market-driven unstable
a. Already
Customer Accessible stuck with
competitors
b. Within one Three years
Payback year or less or more
period
c. Value Significant Insignificant
customer
d. • Durable or • Perishable
Product long shelf- • Unreasona
life ble priced
• New or
innovative
• Value for
money
b. Highly Seasonal
Service demand
2. Market Emerging Declining or
Structure Stagnant
3. Market •Established • Unknown;
size and clear undetermine
•Big enough d
for the • Small
entrepreneur
4. Faster and Slow and
Growth acceptable unacceptable
rate growth rate growth rate
5. Market Fully Under
Capacity capacitated capacitated
6. • Easier and • Difficult and
Market faster market slow market
Capacity penetration penetration
• High potential • Low
in potential in
maximization maximization
of market of market
share share
percentage percentage
share share
7. Cost Cost-efficient Too costly
leadership
Total: SUM of Attractiveness score ÷ 7 x 20%
(weight
20%)
S eizing the
Opportunity
It is the last step, this
is the “Pushing
through” with
chosen opportunity.
Innovation is the process of
positively improving an existing
product or service.
It is a key driver for economic
growth.
3 Types of Innovations
1.Breakthrough
innovation
-when you bring something
new to the world.
2.Technological Innovation
3. Ordinary
innovation
Product or
Service
Planning and
Development
Process
5 Key Stages
1. Idea Stage
- In this stage, the entrepreneur
determines what are the feasible
products and/or services that will
perfectly suit the opportunity.
2. Concept Stage
- Once the acceptable product or service
has already been identified. In the
concept stage, the developed idea will
undergo a consumer acceptance test.
3. Product Development Stage
- In this stage, the entrepreneur
leverages on the information generated
from the prospective customers via the
concept stage. actual reactions from
prospective customers are determined.
4. Testing Marketing Stage
- This stage validates the work done
from the first three stages to
measure succession the
commercialization of the product or
service
5. Commercializing Stage
-This stage is also called “LAUNCH
STAGE”.
-While the product how now begun to be
distributed and sol, these may be done
on a limited basis.
