This document discusses recognizing opportunities in the market through the three S's: opportunity seeking, screening, and seizing. It defines opportunity seeking as evaluating market activities that are beneficial for business. Screening is cautiously selecting the best opportunity by analyzing customer needs and viable product solutions. Seizing is pushing through with the chosen opportunity. The document also discusses understanding the market through value propositions, unique selling propositions, and analyzing target customers, their requirements, and market size.

1. RECOGNIZE A
POTENTIAL
MARKET
LESSON 5

2. OPPORTUNITY SEEKING
OPPORTUNITY SCREENING
OPPORTUNITY SEIZING
3 S’s OF OPPORTUNITY

3.  OPPORTUNITY SEEKING is a process of
considering, evaluating, and pursuing
market based activities that are accepted to
be beneficial for the business.
 Essentials in Entrepreneur’s Opportunity
Seeking
 1. Entrepreneurial mind frame
 2. Entrepreneurial heart flame
 3. Entrepreneurial gut game
3 S’s OF OPPORTUNITY

4.  OPPORTUNITY SCREENING is the process of
cautiously selecting the best opportunity.
Recognize a potential market
 • Analyze the market need
 • Determine the possible product/s or
service/s that will meet the need;`
 • Screen the proposed solution/s based on
viability, profitability, and customer
requirements
3 S’s OF OPPORTUNITY

5. YOUR MARKET CONSIST OF:
 Existing customers:
People who have already purchased your
product.
 Prospects:
People who have not yet purchased your
product but are considering it.
 Target market users:
People in your target market who are not
currently looking for a solution.

6. OPPORTUNITY SEIZING is the
last step in opportunity spotting
and assessment.
This is the pushing through of
entrepreneurs with their chosen
opportunity.
3 S’s OF OPPORTUNITY

7. INNOVATION is the process of creating a
unique idea that will positively improve
an existing product or service which can
be a key driver for economic growth. It
is constantly changing, therefore,
products and services must also adapt
to these changes.
OPPORTUNITY SEIZING

8. How to choose or come up with a
competing product or service?
 1. Identify the main customer segments.
 2. Differentiate product attributes and features
of each of the competitors.
 3. Determine the existing marketing practices
of the various competitors.
 4. Categorize the market preferences of
consumers when it comes to the products
being offered.

9.  Product Planning and Development Process
 1. Idea Stage. This refers to the formation of the
business ideas. It starts with an entrepreneurial intent
and proceeds with a development of a business idea
using logic and creativity.
 2. Concept Stage. The refinement of ideas and
visualization of an idea that can serve as a business
opportunity.
 3. Product Development Stage. It is here where the
business idea is concretized with the production of a
prototype.
 4. Test Marketing Stage. At this phase, the product or
service is introduced in the market after a series of
evaluation and feedback from potential customers.

10. RECOGNIZE AND
UNDERSTAND THE
MARKET
LESSON 6

11. In opening a new venture or
business, you need to determine
the Unique Selling Proposition
(USP) and Value Proposition (VP)
of your product as well as your
target market.

12. VALUE PROPOSITION (VP)
- is a business or marketing
statement that summarizes why a
consumer should buy a company's
product or use its service. This
statement is often used to
convince a customer to purchase a
particular product or service to
add a form of value to their lives.

13. Basic elements of creating
Value Proposition:
 Target Customer
 Needs/opportunity
 Name of the product
 Name of the enterprise/company

14. Example: Potential value proposition is
most common in small businesses of your
locality.
 Aling Charing Sari-Sari Store opens only from
6:00 am to 6:00 pm, but Aling Charing noticed
that there are customers who go to a nearby
town to look for a convenience store at around
10:00 pm to 6:00 am. She believes that this is a
great opportunity for her store to operate 24/7.
In this example, the proposed value
proposition is: “Charing sari-sari Store, open
24/7”.

15. UNIQUE SELLING
PROPOSITION (USP)
– refers to how you sell your
product or services to your
customer. You will address the
wants and desires of your
customers.
Ex. Company Slogan

16. THREE FACTORS THAT WILL
DETERMINE YOUR CUSTOMERS
A. Target Market
B. Customer requirements
C. Market Size

17. A. Target Market
- A market identification process that
aims to determine the buyers with
common needs and characteristics.
Prospect customers are a market
segment that an entrepreneurial
venture intends to serve.

18. Commonly used methods for
segmenting the markets
1. Geographic segmentation – the total
market is divided according to
geographical location.
Variables to consider
a. Climate
b. Dominant ethnic group
c. Culture
d. Density (either rural or urban)

19.  2. Demographic Segmentation – divided based
on consumers
 Variables to consider
 a. Gender
 b. Age
 c. Income
 d. Occupation
 e. Education
 f. Religion
 g. Ethnic group
 h. Family size

20. 3. Psychological Segmentation – divided in terms
of how customers think and believe
 Variables to consider
 a. Needs and wants
 b. Attitudes
 c. Social class
 d. Personality traits
 e. Knowledge and awareness
 f. Brand concept
 g. Lifestyle

21.  4. Behavioral Segmentation – divided
according to customers’ behavior pattern as
they interact with a company.
Variables to consider
 a. Perceptions
 b. Knowledge
 c. Reaction
 d. Benefits
 e. Loyalty
 f. Responses

22. B. Customer Requirements
Customer requirements are the
specific characteristics that the
customers need from a product or
a service.
There can be two types of customer
requirements:
1. Service Requirement
2. Output Requirement

23. Service Requirement:
An intangible thing or product that
cannot be touched but the customer can
feel the fulfillment. It includes all aspects of
how a customer expects to be treated while
purchasing a product and how easy the
buying process goes.
Output Requirement:
Tangible thing or things that can be seen.
Characteristic specifications that a consumer
expects to be fulfilled in the product.

24. C. Market Size
The entrepreneur’s most critical task
is to calculate the market size, and the
potential value that market has for
their start-up business. Market
research will determine the
entrepreneurs’ possible customers in
one locality.

25.  STRATEGIC MARKETING RESEARCH METHOD
The first step is to estimate the potential
market – approximate number of customers
that will buy the product or avail your services.
 The second step is to estimate the customers
who probably dislike to buy your product or
avail the services.
 The third step is for the entrepreneur to
estimate the market share, that means plotting
and calculating of the competitor’s market
share to determine the portion of the new
venture.

26. Thank you!