9

Technology and
Livelihood Education
Quarter 1 – Module 2:
Environment and Market

Department of Education • Republic of the Philippines

Technology and Livelihood Education – Grade 9
Alternative Delivery Mode
Quarter 1 – Module 2: Environment and Market
First Edition, 2019

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 9

Technology and
Livelihood
Education
Quarter 1 – Module 2:
Environment and Market

This instructional material was collaboratively developed and reviewed

by educators from public and private schools, colleges, and or/universities. We
encourage teachers and other education stakeholders to email their feedback,
comments, and recommendations to the Department of Education at
action@deped.gov.ph.

We value your feedback and recommendations.

Department of Education • Republic of the Philippines

Introductory Message
For the facilitator:

This module was designed and crafted for the learners to be able to be well-informed
and equipped with appropriate knowledge, skills and understanding about
Environment and Market, which is very essential in putting up Technical Drafting-
related businesses. This module is designed to be self-paced through self-assessment
and activity sheets.

For the learner:

After learning about Personal Entrepreneurial Competencies (PECs), it’s about time that
we apply what you’ve learned by drafting your own business idea! In this module, you
will explore the economic, cultural, and social conditions in your target location of your
business. You will learn how to identify needs and wants and how it will help you to
in realizing business opportunities.

2
 What I Need to Know

This module was designed and written with you in mind. It is here to help you
master Personal Entrepreneurial Competencies or simply PECs. 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 composed of:

• Lesson 1 – Product Development
• Lesson 2 – Generating Ideas for Business

After going through this module, you are expected to:

1. demonstrate an understanding of environment and market in Technical
Drafting in one’s province;
2. be able to create a business vicinity map reflective of potential Technical
Drafting market in one’s province;
3. develop a product/service in Technical Drafting;
4. select a business idea based on the criteria and techniques set; and
5. develop a brand for the product.

3
 What I Know

Choose the letter of the best answer. Write the chosen letter on a separate sheet of
paper.

1. It is generated by examining the goods and services sold in the community.

A. business creation C. business concept
B. business pricing D. business idea
2. It is a process of making new products which will be sold to the customers.
A. product analysis C. product development
B. product conceptualization D. product implementation
3. What do you call cellphones, leisure travels, luxuries, advantages and desires that
every individual considers beyond necessary?
A. wants C. requirements
B. desires D. needs
4. It is a factor or consideration presented by a seller as the reason that a product or
service is different from and better than that of the competition.
A. unique selling plan C. unique pricing policy
B. unique selling proposition D. finding value-added
5. A stage in which the needs of the target market are identified, reviewed, and
evaluated.
A. concept development C. project development
B. economic analysis D. refine specification
6. It is the introduction of new ideas to make the product and services more attractive
and saleable to the target customers.
A. new idea C. product development
B. creativity D. innovation
7. It is a managerial tool used to assess the environment and to gather important
information that can be used for strategic planning.
A. scanning C. WOTS Analysis
B. SWOT Analysis D. survey analysis
8. It is creating names, symbol, or designs that identifies and differentiates a product
from the other products.
A. product naming C. branding
B. unique selling proposition D. tagline
9. “We find ways” is an example of publicizing a brand. Which of the choices below
can best describe it?
A. product naming C. branding
B. unique selling proposition D. tagline
10. What do you call food, shelter, clothing and all the things that people cannot live
without?
A. wants C. requirements
B. desires D. needs

4
 Lesson

1 Environment and Market

It’s a good practice that to be successful in any kind of business venture,

potential entrepreneurs should look closely at the environment and market. They
should always be alert of existing opportunities and constraints, and to take
premeditated risks. The opportunities in the business environment are factors that
provide possibilities for a business to expand and make more profit. Constraints, on
the other hand, are factors that limit business growth, hence reduce the chance of
generating profit. The best way to evaluate opportunities and constraints is to
conduct a Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis
which you will learn later on.

What’s In

Notes to the Teacher

Recalling of the following lessons from exploratory course will be a
great tool for the success of this module:
1. Key concepts in Environment and Market;
2. Products and services available in the market;
3. Differentiation of products and services;
4. Customers and their buying habits;
5. Competition in the market; and
6. SWOT Analysis

5
 What’s New

Product Development
When we talk of product development, it actually refers to a process of making
a new product to be sold by a business or enterprise to its customers. Product
development involves modification of an existing product as well as its presentation,
or formulation of an entirely new product that will gratifies customer’s needs, wants
and/or a marketplace.
By definition, the term development in this module refers collectively to the
entire process of identifying a market opportunity, creating a product to appeal to
the identified market, and testing, modifying, and refining the product until it
becomes ready for production.
There are basic but vital questions that you can ask yourself about product
development. When you find acceptable answers to them, you may now say that you
are ready to develop a product and/or render services.

These questions include the following:

1. For whom are the product/services aimed at?
2. What benefit will the customers expect from product/service?
3. How will the product/service differ from the existing brand? From its
competitor?

In addition, needs and wants of the people within an area should also be taken
into consideration. Everyone has his/her own needs and wants. However, each
person has different concepts of needs and wants. Needs in business are the
important things that an individual cannot live without in a society. These include:
1. Basic commodities for consumption,
2. Clothing and other personal belongings,
3. Shelter, sanitation and health, and
4. Education.

Basic needs are crucial to an individual to live with dignity and pride in a
community. These needs can obviously help generate business ideas and
subsequently leads to product development.
Wants are desires, luxury and extravagance that signify wealth and expensive
way of living. Wants or desires are considered above all the basic necessities of life.
Some examples of wants or desires are: fashion accessories, expensive shoes and
clothes, travels, eating in an expensive restaurant, watching movies, concerts, having
luxurious cars, wearing expensive jewelry and perfume, living in impressive homes,
among others.
Needs and wants of people are the basic indicators of the kind of business
that you may engage in because it can serve as the measure of your success. Some
other points that might be considered in business undertakings are the kind of

6
people, their needs, wants, lifestyle, culture and tradition, and their social
orientation.
To summarize, product development entirely depends on the needs and wants
of the customers. Another important issue to deal with is the key concepts of
developing a product. The succeeding topic shall enlighten you about the procedure
in coming up with a product.

Concepts of Developing a Product

Concept development is a critical phase in the development of a product. In
this stage, the needs of the target market are identified, and competitive products
are reviewed before the product specifications are defined. The product concept is
selected along with an economic analysis to come up with an outline of how a product
is being developed. Figure 3 shows the stages of concept development of a product.

The process of product development follows the following stages:

1. Identify customer needs: This can be done by using survey forms,

interviews, researches, focus group discussions, and observations, an
entrepreneur can easily identify customers’ needs and wants. In this stage,
the information that can be possibly gathered can be a great tool in product
specifications (performance, taste, size, color, shape, life span of the product,
etc.). This stage is very important because it would determine the product to
be produced or to be provided.
2. Establish target specifications: After identifying the customer’s needs and
reviews of competitive products, you can now establish target specifications of
the prospective new product and/or services. A target specification is basically
a wish-list.
3. Analyze competitive products: It is critical to analyze existing competitive
products to provide important information in establishing product or service
specifications. Other products may exhibit successful design attributes that
should be matched or improved upon in the new product or service.
4. Generate product concepts: After having gone through with the previous
processes, you may now develop several product concepts to illustrate the
types of products or services that are technically feasible and will best meet
the requirements of the target specifications.

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 5. Select a product concept: A final concept is selected after the process of
evaluation between attributes. After the final selection, additional market
research can be applied to obtain feedback from certain key customers.
6. Refine product specifications: In this stage, product or services
specifications are refined based on input from the previous activities. Final
specifications are the result of extensive study, expected service life, projected
selling price among others are being considered in this stage.
7. Perform economic analysis: It is very important to always review and
estimate the economic implications regarding development expenses,
manufacturing costs, and selling price of the product or services to be offered
or provided throughout the process of product development.
8. Plan the remaining development project: In this final stage of concept
development, you can prepare a detailed development plan which includes list
of activities, necessary resources and expenses, and development schedule
with milestones for tracking progress.

Finding Value
It is obvious that people buy for a reason. There should be something in your
product or service that would give consumers a good reason to go back and buy
more. There must be something that will make you the best option for target
customers; otherwise, they have no reason to buy what you are selling. This implies
further, that you offer something to your customers that will make them value your
product or service. The value you incorporate in your product is called value
proposition. Value proposition is a believable collection of the most persuasive
reasons why people should notice you and take the action you’re asking for. It is
what gets people moving, what makes people spend for your product or service.

Innovation
Innovation in business planning is the introduction of something new in your
product or service. This may be a new idea, a new method, or a new device. If you
want to increase your sales and profit, you must innovate. Some of the possible
innovations for your products are change of packaging, improvement of taste, color,
size, shape, and perhaps price. Some of the possible innovations in providing services
are application of new and improved methods, additional featured services, and
possibly freebies.

Unique Selling Proposition (USP)

Unique Selling Proposition is the factor or consideration presented by a seller
as the reason that one product or service is different from and better than that of the
competition. Before you can begin to sell your product or service to your target
customers, you have to sell yourself in it. This is especially important when your
product or service is similar to your competitors.
USP requires careful analysis of other businesses' ads and marketing
messages. If you analyze what they say or what they sell, not just their product or
service characteristics, you can learn a great deal about how companies distinguish
themselves from competitors. Here's how to discover your USP and how to use it to
increase your sales and profit:

8
• Use empathy: Put yourself in the shoes of your customers. Always focus on
the needs of the target customers and forget falling in love with your own
product or service. Always remember, you are making/providing this product
not for yourself but for the target customers to eventually increase sales and
earn profit. Essential question such as what could make them come back and
ignore competition, should be asked to oneself. Most possible answers may be
focused on quality, availability, convenience, cleanliness, and reliability of the
product or service.
• Identify customer’s desires: It is very important for you to understand and find
out what drives and motivates your customers to buy your product or service.
Make some effort to find out, analyze and utilize the information that
motivates the customers in their decision to purchase the product or service.
• Discover customer’s genuine reasons for buying the product: Information is
very important in decision making. A competitive entrepreneur always
improve their products or services to provide satisfaction and of course
retention of customers. As your business grows, you should always consider
the process of asking your customers important information and questions
that you can use to improve your product or service.

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 What is It

Direction: Select a successful entrepreneur or practitioner. Conduct an interview

using the set of questions below. Document the interview and present it to the class.
Use a separate sheet of paper.

1. Were you able to identify your target customers before putting up your business?
How did you identify your customers?
__________________________________________________________________________________
__________________________________________________________________________________
2. What were your considerations in selecting your customers?
__________________________________________________________________________________
__________________________________________________________________________________
3. Explain how your product or service differs from 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 strategy did you consider creating a unique selling proposition to your
product or service?
__________________________________________________________________________________
__________________________________________________________________________________

10
 What’s More

Activity 2.1 Concept Development

Instruction: Develop your own concept of your product or service by using the
figures on this page. Use bullets in every stage of product conceptualization in
listing important key ideas.

1. Identify 2. Target 3. Analyze a

customer’s specification competitive
needs product
•
• •

•
• •

6. Refine 5. Select a 4. Generate a

product product product
specification concept concept

• • •

• • •

7. Prepare a
development
plan

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 What’s New

Generating Ideas for Business

The process of developing and generating a business idea is not a simple
process. Some people come up with a bunch of business ideas that are not really
feasible. There are two problems that arise; first is the excessive generation of ideas
that can forever remain as a dreaming stage and the second is when they don’t
have ideas and don’t want to become entrepreneurs. The most optimal way is to
have a systematic approach in generating and selecting a business idea that can be
transformed into a real business. Here are some basic yet very important
considerations that can be used to generate possible ideas for business:

1. Examine existing goods and services: You can ask yourself:

• Are you satisfied with the product?
• What do other people who use the product say about it?
• How can it be improved?
2. Examine the present and future needs.
3. Examine how the needs are being satisfied.
4. Examine the available resources.
5. Read magazines, news articles, and other publications on new products and
techniques or advances in technology.

Key Concepts of Selecting a Business Idea

Once you have identified business opportunities, you will eventually see that
there are many possibilities available for you. It is very unlikely that you will have
enough resources to pursue all of them at once. You have to select the most
promising one among hundreds of ideas. It will be good to do this in stages. In the
first stage, you screen your ideas to narrow them down to about few choices. In the
next stage, trim down the choices to two options. In the final stage, choose between
the two and decide which business idea is worth pursuing. In screening your ideas,
examine each one in terms of the following guide questions:

1. How much capital is needed to put up the business?

2. Where should the business be located?
3. How big is the demand for the product? Do many people need this product
and will continue to need it for a long time?
4. How is the demand met? Who are processing the products to meet the needs
(competition or demand)? How much of the need is now being met (supply)?
5. Do you have the background and experiences needed to run this particular
business?
6. Will the business be legal and not against any existing or foreseeable
government regulation?
7. Is the business in line with your interest and expertise?

12
 Your answers to these questions will be helpful in selecting which ones among
your many ideas are worth examining further and worth pursuing.

Branding

Branding is a marketing practice of creating a name, a symbol or design that

identifies and differentiates product or services from the rest. It is also a promise to
your customers. It tells them what they can expect from your product or service
and it differentiates your offerings from other competitors. Your brand is derived
from who you are, who you want to be and what people perceive you to be.
Branding is one of the most important aspects in any business. An effective brand
strategy gives you a major edge in increasingly competitive markets. A good
product can:

• deliver message clearly

• confirm credibility
• connect to target prospect
• motivate buyers, and
• concretize user loyalty

Here are simple tips to publicize your brand:

• Develop a tagline: Write a statement that is meaningful, impressive, and easy to

remember to capture the essence of your brand.
• Design a logo: Create a logo symbolic of your business and consistent with your
tagline and displace it strategically.
• Write a brand message: Select a key message to communicate about your brand.
• Sustain a brand quality: Deliver a promise of quality through your brand.
• Practice consistency: Be reliable and consistent to what your brand means in your
business

In generating a business idea, you should first identify the type of business
suited to your business idea. You should analyze and scan the potential
environment, study the marketing practices and strategies of your competitors,
analyze strengths, weaknesses, opportunities, and threats in your environment to
ensure that the products or services you are planning to offer will be patronized
and within easy reach of target consumers.

How to conduct SWOT Analysis:

1. Be realistic about the strengths and weaknesses of your business when

conducting SWOT Analysis.
2. SWOT Analysis should distinguish between where your business is today,
and where it can be in the future.
3. SWOT Analysis should always be specific. Avoid any gray areas.
4. Always apply SWOT Analysis in relation to your competition, i.e. better than
or worse than your competition.
5. Keep your SWOT Analysis short and simple. Avoid complexity and over
analysis.
6. SWOT Analysis is subjective.

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 What is It

Directions: Formulate a business idea, in a separate sheet of paper or in your

notebook list down all your observations for your business idea. Classify your
observations according to strengths, weakness, opportunities and threats. After
cautiously listing them down, filter your business idea by using the stated
strategies to come up with a comprehensive analysis, activities and best business
idea.

SWOT Analysis

Strength (S) Weakness (W)

• •

• •

Opportunities (O) Threats (T)

• •

• •

Strategies:

• SW - Maximize on the Strengths to overcome the internal Weakness.

• OW - Capitalize on the Opportunities to eliminate the internal Weakness.
• ST - Maximize on your Strengths to eliminate the external Threats.
• OT - Take advantage of the available Opportunities to eliminate the external
Threats.

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 What’s More

Activity 2.2 Reflection

After conducting the SWOT analysis, were you able to overcome weakness and
make a plan for the threats? What is the best business idea you’ve arrived?

__________________________________________________________________________________
__________________________________________________________________________________
______________________________________________

Do you think you can create your own feasible business idea? You can watch the
following videos to have better understanding of how business idea works and how
to strengthen these ideas.

1. Steps in selecting a business idea

• https://youtu.be/xnnQH1eLZTo
• https://youtu.be/G0dzLanYW1E
2. Criteria of a viable business idea
• https://youtu.be/bHxfxWq_TjM
3. Benefits of a good brand
• https://youtu.be/IK0kdQVRBcw

15
 What I Have Learned

1. Product development refers to a process of making a new product to be sold

by a business or enterprise to its customers.
2. Basic needs are crucial to an individual to live with dignity and pride in a
community.
3. Wants are desires, luxury and extravagance that signify wealth and expensive
way of living.
4. Concept development is a critical phase in the development of a product. In
this stage, the needs of the target market are identified, and competitive
products are reviewed before the product specifications are defined.
5. Innovation in business planning is the introduction of something new in your
product or service.
6. Branding is a marketing practice of creating a name, a symbol or design that
identifies and differentiates product or services from the rest..

16
 What I Can Do

After your second module, now you should be able to identify concepts and
business ideas which are essential in putting up a business related to Technical
Drafting.

Assessment

Direction: Choose the letter of the best answer. Write your answer on a separate
sheet of paper.

1. It is generated by examining the goods and services sold in the community.

A. business creation C. business concept
B. business pricing D. business idea
2. It is a process of making new products which will be sold to the customers.
A. product analysis C. product development
B. product conceptualization D. product implementation
3. What do you call cellphones, leisure travels, luxuries, advantages and desires that
every individual considers beyond necessary?
A. wants C. requirements
B. desires D. needs
4. It is a factor or consideration presented by a seller as the reason that a product or
service is different from and better than that of the competition.
A. unique selling plan C. unique pricing policy
B. unique selling proposition D. finding value-added
5. A stage in which the needs of the target market are identified, reviewed, and
evaluated.
A. concept development C. project development
B. economic analysis D. refine specification
6. It is the introduction of new ideas to make the product and services more attractive
and saleable to the target customers.
A. new idea C. product development
B. creativity D. innovation
7. It is a managerial tool used to assess the environment and to gather important
information that can be used for strategic planning.
A. scanning C. WOTS Analysis
B. SWOT Analysis D. survey analysis
8. It is creating names, symbol, or designs that identifies and differentiates a product
from the other products.
A. product naming C. branding

17
 B. unique selling proposition D. tagline
9. “We find ways” is an example of publicizing a brand. Which of the choices below
can best describe it?
A. product naming C. branding
B. unique selling proposition D. tagline
10. What do you call food, shelter, clothing and all the things that people cannot live
without?
A. wants C. requirements
B. desires D. needs

18
 Additional Activities

Branding

Instruction: After establishing your business idea, you will be creating a logo and
tagline for your brand.

Logo

Tagline

19
 20
What I Know Assessment
1. D 1. D
2. C 2. C
3. A 3. A
4. B 4. B
5. D 5. D
6. D 6. D
7. B 7. B
8. C 8. C
9. D 9. D
10. D 10. D
Answer Key
References

C-CHS LM Module 1 PECs and Module2 EM

www.entrepreneur.com
https://youtu.be/xnnQH1eLZTo
https://youtu.be/G0dzLanYW1E
https://youtu.be/bHxfxWq_TjM
https://youtu.be/IK0kdQVRBcw

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For inquiries or feedback, please write or call:

Department of Education – City Schools Division of Dasmariñas

DASCA Compound Burol II, City of Dasmariñas

Telefax: (046) 432-9355

Email Address: Dasmarinas.city@deped.gov.ph