SENIOR HIGH SCHOOL

Entrepreneurship
Quarter 1—Module 3
Recognizing A Potential Market
Lesson 1: Analyzing A Market Need
 

Entrepreneurship
Alternative Delivery Mode
First Quarter- Module 3: Recognizing A Potential Market
First Edition, 2020

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authors do not represent nor claim ownership over them.

Published by the Department of Education

Secretary: Leonor Magtolis Briones
Undersecretary: Diosdado M. San Antonio

Development Team of the Module

Writer : Mr. Neil U. Lim

Reviewer : Dr. Clavel D. Salinas
Illustrator : Mr. Neil U. Lim
Layout Artist : Mr. Neil U. Lim
Evaluator : Ms. Natividad A. Villegas
Moderator : Dr. Arlene D. Buot

Management Team

Schools Division Superintendent : Dr. Marilyn S. Andales, CESO V

Assistant Schools Division Superintendents : Dr. Leah B. Apao
Dr. Ester A. Futalan
Dr. Cartesa M. Perico
Chief, CID : Dr. Mary Ann P. Flores
EPS in LRMS : Mr. Isaiash T. Wagas
PSDS/SHS Division Coordinator : Dr. Clavel D. Salinas

Printed in the Philippines

Department of Education, Region VII, Division of Cebu Province
Office Address: IPHO Bldg., Sudlon, Lahug, Cebu City
Telefax: (032) 255-6405
E-mail Address: [Link]@[Link]
   
 SENIOR HIGH SCHOOL

Entrepreneurship
Quarter 1—Module 3
Recognizing A Potential Market
Lesson 1: Analyzing A Market Need
 

Key Message

For Educators:
Learning is a constant process. Amidst inevitable circumstances,
Department of Education extends their resources and looks for varied ways to cater
your needs and to adapt to the new system of Education as a fortress of Learning
Continuity Plan. One of the probable solutions is the use of Teacher-made
Educational Modules in teaching.
You are reading the Entrepreneurship: First Quarter Alternative Delivery
Mode (ADM) Module on “Recognizing a Potential Market (TLE_ICTAN11/12PC-
Ia-1)” as written and found in the K-12 Most Essential Learning Competencies.
The creation of this module is a combined effort of competent educators from
different levels and various schools of Department of Education-Cebu Province. In
addition, this module is meticulously planned, organized, checked and verified by
knowledgeable educators to assist you in imparting the lessons to the learners
while considering the physical, social and economical restraints in teaching
process.
The use of Teacher-made Educational Module aims to surpass the
challenges of teaching in a new normal education set-up. Through this module, the
students are given independent learning activities, which embodies in the Most
Essential Learning Competencies based from the K-12 Curriculum Competencies,
to work on in accordance to their capability, efficiency and time. Thus, helping the
learners acquire the prerequisite 21st Century skills needed with emphasis on
utmost effort in considering the whole well being of the learners.
In addition to the material in the main text, you will also see this box in the
body of the module:

Notes to the Teacher!

This part of the module gives you helpful tips,

suggestions or strategies that will make the
learning process easy and efficient to the

As the main source of learning, it is your top priority to explain clearly on how
to use this module to the learners. While using this module, learner’s progress and
development should be recorded verbatim to assess their strengths and
weaknesses while doing the activities presented independently in safety of their
homes. Moreover, you are anticipated to persuade learners to comply and to finish
the modules on or before the scheduled time.

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For the Learners:

As a significant stakeholder of learning, Department of Education researched
and explored on innovative ways to address your needs with high consideration on
social, economic, physical and emotional aspects of your well being. To continue
the learning process, DepEd comes up with an Alternative Delivery mode of
teaching using Teacher-Made Educational Modules.
You are reading the Entrepreneurship: First Quarter Alternative Delivery
Mode (ADM) Module on “Recognizing a Potential Market (TLE_ICTAN11/12PC-
Ia-1)” as written and found in the K-12 Most Essential Learning Competencies.
This module is especially crafted for you to grasp the opportunity to continue
learning even at home. Using guided and independent learning activities, rest
assured that you will be able to take pleasure as well as to deeply understand the
contents of the lesson presented; recognizing your own capacity and capability in
acquiring knowledge.
This module has the following parts and corresponding icons:
 
The first part of the module will keep
you on track of the competencies,
WHAT I NEED TO KNOW
objectives and skills that you are
expected to develop and master.

This part aims to check your existing

WHAT I KNOW
knowledge of the lesson.

 
This part helps you link the previous
WHAT’S IN lesson with the current one through a
short exercise/drill.

  The lesson is introduced in this part

of the module creatively. It may be
WHAT’S NEW through a story, a song, a poem, a
problem opener, an activity, a
situation or the like.
 
A brief discussion of the lesson can
be read in this part. It guides and
WHAT IS IT
helps you unlock the lesson
presented.

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A comprehensive activity or activities
for independent practice is in this part
WHAT’S MORE
to solidify your knowledge and skills
of the topic.

 
This part of the module is used to
WHAT I HAVE LEARNED process your learning and
understanding on the given topic.

 
A transfer of newly acquired
knowledge and skills to a real-life
WHAT I CAN DO
situation is present in this part of the
module.

This activity assesses your level of

ASSESSMENT
mastery towards the topic.

 
In this section, enhancement activities
ADDITIONAL ACTIVITIES will be given for you to further grasp
the lessons.

This contains answers to all activities

ANSWER KEYS
in the module.

At the end of this module you will also find:

References Printed in this part is a list of all reliable and valid
resources used in crafting and designing this module.
In using this module, keep note of the fundamental reminders below.
1. The module is government owned. Handle it with care. Unnecessary
marks are prohibited. Use a separate sheet of paper in answering all
the given exercises.

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2. This module is organized according to the level of understanding.

Skipping one part of this module may lead you to confusion and
misinterpretation.
3. The instructions are carefully laden for you to understand the given
lessons. Read each item cautiously.
4. This is a Home-Based class, your reliability and honor in doing the
tasks and checking your answers are a must.
5. This module helps you attain and learn lessons at home. Make sure to
clearly comprehend the first activity before proceeding to the next one.
6. This module should be returned in good condition to your teacher/
facilitator once you completed it.
7. Answers should be written on a separate sheet of paper or notebook
especially prepared for Entrepreneurship subject.
If you wish to talk to your teacher/educator, do not hesitate to keep in touch
with him/her for further discussion. Know that even if this is a home-based class,
your teacher is only a call away. Good communication between the teacher and the
student is our priority to flourish your understanding on the given lessons.
We do hope that in using this material, you will gain ample knowledge and
skills for you to be fully equipped and ready to answer the demands of a globally-
competitive world. We are confident in you! Keep soaring high!

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WHAT I NEED TO KNOW

Good day dear learner!

This module is solely prepared for you to access and acquire lessons
befitted to your grade level. The exercises, drills and assessments are carefully
made to suit your level of understanding. Indeed, this learning resource is for you to
fully comprehend entrepreneurship and its relevance to your chosen strand.
Independently, you are going to go through this module following its proper
sequence. Although you are going to do it alone, this is a guided lesson and
instructions/directions on how to do every activity is plotted for your convenience.
Using this learning resource, you will learn how to recognize a potential
market (TLE_ICTAN11/12PC-Ia-1) as indicated in the K-12 Most Essential
Learning Competencies.
Using separate modules, this competency is divided into four lessons, as
follows:
Lesson 1: Analyzing A Market Need;
Lesson 2: Determining Possible Products or Services That Will Meet
the Market Need;
Lesson 3: Screening Proposed Solutions to A Market Need Based on
Viability and Profitability;
Lesson 4: Screening Proposed Solutions to A Market Need Based on
Customer Requirements.
At the end of this module, you are expected to achieve the following
objectives:
 know the different sources of opportunities;
 identify different sources of opportunities within the community; and
 use the different sources of opportunities in determining a market
need.

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WHAT I KNOW

Copy the list of businesses on a separate sheet of paper. Opposite each,

write the possible reason for putting up such a business.

Example: coffee shop — There are many young and single professionals
in the community.

 eatery (carenderia)

 siomai food cart
 barber shop
 beauty parlor
 bookkeeping services
 barbecue stand
 insurance agency
 janitorial services agency
 security guard agency
wedding and events planning services
photocopying services
sari-sari store
vulcanizing shop
fish stall at the local market
balut stand

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WHAT’S IN

In the previous module, you made a list of 10 career entrepreneurial

opportunities related to your chosen strand. Go back to that list and identify which
market need each of those opportunities satisfies.
Example:
sell snacks to office workers — office workers need to eat snacks in the
afternoon but have no time to go out and
buy

OPPORTUNITY MARKET NEED

   

   

   

   

   

   

   

   

   

   

Among the market needs you identified, select five and arrange them from
most important to least important.

1. _____________________________________________________
2. _____________________________________________________
3. _____________________________________________________
4. _____________________________________________________
5. _____________________________________________________

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WHAT’S NEW

Take a look at the picture below and assume that the people there is your
target market. On a separate sheet of paper, list down 15 needs that these people
might have.
Example: cold refreshments because the people are sweating

Illustrated by Neil U. Lim

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WHAT IS IT

The needs of a potential market are closely linked to its characteristics and
its living environment. The needs become sources of opportunities to
entrepreneurs. Morato (2015, 5-10), divided the sources of opportunities into two
categories:
1. Macro-Environmental Sources
a. Demographics (age, gender, etc.)
b. Beliefs
c. Tastes
d. Customs
e. Traditions
f. Political environment
g. Laws and ordinances that govern economic activity
h. Permits and licenses
i. Taxes
j. Policies on use of resources
k. Macro-Economic Environment (supply and demand)
l. Ecological Environment (natural resources)
m. Technological Environment
2. Micro Level Sources
a. Consumer preferences (affected by demographics)
b. Customer dislikes
c. Consumer perceptions
Each of these sources is enough to give the entrepreneur an idea on what
product or service a particular market needs.
In the previous activity, you were looking into demographics as you
considered the ages and gender of the people in the picture. The ages and gender
of people most often dictates their activities. Thus, they’ll have different needs. For
example, older people are less active as compared to younger people but are
generally wiser in spending money. For this reason, they’ll demand more value for
their money. Young people on the other hand are more impulsive buyers.
Beliefs, tastes, customs, and traditions are some of the most influential
indicators of market need because they are tied to religion, which is a way of life.
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For example: candles, crucifixes, and rosaries are mostly needed in communities
that are predominantly Catholic as compared to one that is not. With regard to
meat and livestock, there is more need for poultry, beef, and lamb in Islamic areas
while pork will be much needed in predominantly Christian communities. An
entrepreneur should consider these things carefully.
It also goes without saying that the political environment affects everyone
and dictates a market’s needs. Strict licensing laws and taxes have contributed to
the demand for customs brokers and bookkeeping services that include the filing of
income taxes to the Bureau of Internal Revenue.
The needs of the market will vary and are not always fixed. Everything
depends on economic circumstance. For this reason, the entrepreneur must
always be active in seeking opportunities and will greatly be benefited in studying
economics in addition to other subjects.

WHAT’S MORE

On a separate sheet of paper, describe your community according to the

sources of opportunities that you have learned in the previous sections. Refer to
the guide below:

1. Describe the demographics of your community? How many are

children? Teenagers? Young adults? Professionals? Senior citizens?
Skilled workers? Unskilled? You can have as many categories as you
can.
2. What are the people’s beliefs, tastes, customs, and traditions? What
influences these? For example, you live in an area whose residents
come from different parts of the country.
3. What political situation affects your area? Are there existing laws and
ordinances that govern economic activity? What are they? What
goods and services need permits and licenses? Are taxes
reasonable? Do they hinder entrepreneurs from starting businesses?
What are the people’s opinions regarding all of these?
4. What goods and services are in demand? Are there enough suppliers
that cater to these needs?
5. What raw materials are in abundant supply in your area? Are they

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being taken advantaged by entrepreneurs and businessmen? Are

there existing policies and ordinances governing the use of these
resources? What are they?
6. How about technology? Do people have enough knowledge and skill
to use machines or make machines that enables large scale
production? How does it affect the other sources of opportunity that
you have mentioned so far?
7. What are the people’s preferences and dislikes? Are they related to
the categories that you made when you were examining the
demographics?

WHAT I HAVE LEARNED

On a separate sheet of paper, write down the relationship between the

sources of opportunities and market needs. Please cite concrete examples to
illustrate your point. You may also draw illustrations and diagrams.
The content of your composition will be scored according to this rubric:

SCORE
CRITERIA  
4 3 2 1
The ideas
The ideas
The ideas conveyed
The ideas are conveyed
Content and conveyed are need
sufficiently have
Quality of well written, improvement
conveyed potential and
Ideas interesting, and show
and relevant. relevant to an
and relevant. little to no
extent.
relevance.
There are a There are
There are no There are few
Mechanics number of numerous
errors in errors in
(Spelling, errors in errors in
spelling, spelling,
Punctuation, spelling, spelling,
punctuation, punctuation,
and punctuation, punctuation,
and and
Grammar) and and
grammar. grammar.
grammar. grammar.

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WHAT I CAN DO

On a separate sheet of paper, write at least 15 market needs in your area

using the sources of opportunities that you learned in the “What’s This” section. To
help you remember, the sources of opportunities are given below:

Sources of Opportunities:
1. Demographics (age, gender, etc.)
2. Beliefs
3. Tastes
4. Customs
5. Traditions
6. Political environment
7. Laws and ordinances that govern economic activity
8. Permits and licenses
9. Taxes
10. Policies on use of resources
11. Macro-Economic Environment (supply and demand)
12. Ecological Environment (natural resources)
13. Technological Environment
14. Consumer preferences (affected by demographics)
15. Customer dislikes
16. Consumer perceptions

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ASSESSMENT

A. Look at the list of products and services below and determine which source of
opportunity should be looked into if you are planning to offer them to the market.
If there is more than one, select your best. Write your answers on a separate
sheet of paper.

1. Barbershop _____________________________
2. Fruits and vegetables _____________________________
3. Native Coffee Shop _____________________________
4. Pork _____________________________
5. Beef _____________________________
6. Health Insurance _____________________________
7. Baby Diapers _____________________________
8. Alcoholic Drinks _____________________________
9. Dental Clinic _____________________________
10. Pet shop _____________________________

B. Look at the sources of opportunity listed below. On a separate sheet of paper,

write possible market needs that will come out if you look into these
opportunities.

1. Ecological environment
2. Technological environment
3. Laws and ordinances governing economic activity
4. Customer dislikes
5. Customer preferences

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ADDITIONAL ACTIVITIES

Based on the community description you made in the “What’s More” section,
list at least 15 goods or services that you can provide to satisfy the needs of the
residents in your community.
1. _________________________________________
2. _________________________________________
3. _________________________________________
4. _________________________________________
5. _________________________________________
6. _________________________________________
7. _________________________________________
8. _________________________________________
9. _________________________________________
10. _________________________________________
11. _________________________________________
12. _________________________________________
13. _________________________________________
14. _________________________________________
15. _________________________________________

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ANSWER KEYS

Note to the Teacher!

All the learner’s answers to this module will

vary so the teacher will have to check them.

REFERENCES

Bureau of Small and Medium Enterprises Development. 2015. 2015 Your Guide to
Starting a Small Enterprise. Makati City: Department of Trade and Industry.
[Link]
-Your-Guide-to-Starting-a-Small- [Link].

Morato, Eduardo A. 2015. A Trilogy On Entrepreneurship. Philippines: Eduardo A.

Morato, Jr.

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For inquiries or feedback, please write or call:

Department of Education, Region VII, Division of Cebu Province
Office Address: IPHO Building, Sudlon, Lahug Cebu City 6000
Telefax: (032) 255 - 6405
Email Address: [Link]@[Link]