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Redeveloped Division Initiated Self-Learning Module

Department of Education
i – Division of Palawan
Entrepreneurship – Grade 12
Redeveloped Division Initiated - Self-Learning Module
Quarter 1 – Module 3: Recognize a Potential Market: Determining the possible
Product/s or Service/s
Second Edition, 2021

Republic Act 8293, section 176 states that: No copyright shall subsist in any work
of the Government of the Philippines. However, prior approval of the government
agency or office wherein the work is created shall be necessary for exploitation of
such work for profit. Such agency or office may, among other things, impose as a
condition the payment of royalties.

Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names,
trademarks, etc.) included in this module are owned by their respective copyright
holders. Every effort has been exerted to locate and seek permission to use these
materials from their respective copyright owners. The publisher and authors do not
represent nor claim ownership over them.

Published by the Department of Education, Division of Palawan

Schools Division Superintendent:
Roger F. Capa, CESO VI
OIC - Assistant Schools Division Superintendents:
Rufino B. Foz
Arnaldo G. Ventura, Ph.D.

Development team for

Development Team
Redevelopment Activity

Writer: Edgardo A. Gonzales Writer: Mel Ryann L. Sabando

Editors: Mark G. Javillonar, Marianne R. Editors: Mark G. Javillonar, Marianne R.
Valdez Valdez
Illustrator: Illustrator:
Layout Artist: Mark G. Javillonar Layout Artist: Mark G. Javillonar
Reviewer: Eric N. Quillip Reviewer: Sean A. Catelo
Management Team: Management Team:
Aurelia B. Marquez Aurelia B. Marquez
Rodgie S. Demalinao Rosalyn C. Gadiano
Eric N. Quillip Rodgie S. Demalinao
Sean A. Catelo

Department of Education – MIMAROPA Region – Division of Palawan

Office Address: PEO Road, Barangay Bancao-Bancao, Puerto Princesa City
Telephone: (048) 433-6392
E-mail Address: palawan@[Link]
Website: [Link]

ii
Introductory Message
This Self-Learning Module (SLM) is prepared so that you, our dear learners, can
continue your studies and learn while at home. Activities, questions, directions,
exercises, and discussions are carefully stated for you to understand each
lesson.

Each SLM is composed of different parts. Each part shall guide you step-by-
step as you discover and understand the lesson prepared for you.

Pre-tests are provided to measure your prior knowledge on lessons in each SLM.
This will tell you if you need to proceed on completing this module or if you
need to ask your facilitator or your teacher’s assistance for better
understanding of the lesson. At the end of each module, you need to answer
the post-test to self-check your learning. Answer keys are provided for each
activity and test. We trust that you will be honest in using these.

In addition to the material in the main text, Notes to the Teacher are also
provided to our facilitators and parents for strategies and reminders on how
they can best help you on your home-based learning.

Please use this module with care. Do not put unnecessary marks on any part
of this SLM. Use a separate sheet of paper in answering the exercises and tests.
And read the instructions carefully before performing each task

If you have any questions in using this SLM or any difficulty in answering the
tasks in this module, do not hesitate to consult your teacher or facilitator.

Thank you.

iii
 Entrepreneurship
Recognize a Potential Market:
12
Determining the possible
First Quarter
Week 3 Product/s or Service/s
MELC: Recognize a potential market: Determining the possible
Product/s or Service/s (TLE_ICTAN11/12PC-Ia-1)

Objective/s:
1. To identify the products/services needed of the
market/community.
2. To determine possible products or services that will meet the
identified needs.
3. To recognize one’s role as part of the solution to the problem.

What I Know
Directions: Choose the letter of the best answer and write it on a separate
sheet of paper.

1. This refers to products that can be seen, touched, taste, and smell.
a. Tangible products c. Intangible Products
b. Edible products d. Non- Food products

2. Which of the following pertains to the forecasted value of demand utilizing

statistical forecasting tools?
a. Historical demand c. Projected demand
b. Current supply d. Current demand

3. It refers to the present amount of commodities that are available in the

market for procurement and consumption.
a. Historical supply c. Historical demand
b. Current supply d. Projected Demand

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4. Which is a manifestation of created utility and intrinsic value-added that
has a corresponding market value or price?
a. Demand c. Supply
b. Customers d. Product

5. Which of the following refers to transforming new ideas into a new product
or service and/or by a new and more efficient way of producing or
delivering products or services?
a. Innovation c. Creativity
b. Product d. Demand

6. Which perspective is describing the product through its distinctive features,

uniqueness, and degree of differentiation?
a. Benefits c. Tangible product
b. Location d. Uniqueness

7. It refers to the Point of Sale but also about the production site.
a. Customer c. Environment
b. Location d. Proximity

8. Which of these is an indicator of unsatisfied demand?

a. Demand gap c. Satisfied customer
b. Current Demand d. Demand

9. It pertains to the previous data representing the number of goods and

services produced and consumed.
a. Current supply c. Historical supply
b. Projected supply d. Supply

10. It is a blueprint of the office, and plant layouts are provided with the
corresponding technical measurements and dimensions.
a. Proximity c. Demand
b. Location d. Office and Plant layout

11. When demand exceeds supply, what do we have?

a. Desire c. Needs
b. Gaps d. Wants

12. Which product dimension is concerned with its distinguishing

characteristics, distinctiveness, and degree of differentiation?
a. Benefits it bring c. Scientific Name and Property
b. Distinctive Features or Uniqueness d. Branding and packaging

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13. Which of the following is INCORRECT?
a. Innovation is another crucial aspect of entrepreneurship.
b. The product must find its way to the target market, which through a
carefully chosen proximity.
c. Marketing is an excellent tool for identifying and acting on these
differentiators.
d. The failure of a firm is frequently attributable to a lack of awareness of
the environment in which it operates.

14. Which of the following is NOT an example of an intangible product?

a. Cargo forwarding business c. Karaoke set
b. Health-related spa d. Tourism-related business

15. It refers to the individuals and corporations who buy goods and services
from another company.
a. Company c. Supplier
b. Customer d. Manufacturer

What is It
In the previous lesson, you can learn how to analyze market needs.
Market research aids and assists you in obtaining critical information that is
critical to you and your business. It also entails recognizing market demands
and collecting and evaluating data about a target client, such as
demographic profiles and purchasing power. Market research will also assist
you in evaluating market competitiveness by revealing your competitors' flaws.
It would be useful to your business's success if you know the market and the
competition.
This lesson is about determining the possible products/services that will
meet the need of the community. It will help you practice your
entrepreneurship skills in identifying potential business products/services
offered in your locality. This lesson will also allow you to determine products or
services to solve the community's identified problems or needs.

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 Before you can obtain anything about your firm to fulfill the needs, you
must first recognize the problem. As an entrepreneur, you must come up with
the greatest solution or company idea for that opportunity by providing
products or services for the community and looking for a probable chance in
a situation where entrepreneurs can start a business. You can also conduct a
practical study of your target market or request input from your intended
market to find requirements or business prospects. It is vital to have information
on the financial stability of your potential clients and competitors.
More importantly, as an entrepreneur, you must ensure that the
atmosphere is well-suited to the type of firm you plan to open. Assume that you
wish to start a business in your neighborhood. In that scenario, you must think
about the needs and demands of your customers, the sort of environment,
your competitors, and your business idea that corresponds to your chosen
profession.

Why do we need to determine the possible products/services that will meet the
need of the locality?
You must have the ability to invent, select, and offer products that meet
the needs of your potential clients as an entrepreneur. To be successful in
business, you must understand your consumers' purchasing abilities, potential
customers, and company competitors. That knowledge will assist you in
becoming a successful businessperson.

Creativity and Innovation:

People are always on the lookout for anything new, whether a new
product or a new service. Change, as they say, is the only constant in this life.
Gifted entrepreneurs recognize opportunity when it presents itself and seizes it
to create something new. They believe that opportunities present themselves
without their permission and that it is up to them to seize and respond to them.
They realize that if they take too long to react, they will lose money in one way
or another.
Because entrepreneurs have a natural talent for detecting
opportunities, they will want to take advantage of them. As a result, ingenuity
will be utilized. Product enhancement, product creation, or product
packaging and marketing are all possibilities. When the entrepreneur begins
to write the Business Plan, several considerations come into play. When it
comes to competitiveness, competitors will always want to outdo one another.
For the user to distinguish one product from another, innovation will be a
primary factor. Marketing is an excellent tool for identifying and acting on
these differentiators.

4
Innovation
Innovation is another crucial aspect of entrepreneurship. Innovation is
necessary not only for new items but also for existing products. End users are
spoiled for choice when it comes to products on the market. This is primarily
due to increased competition.
They would claim that end-users always benefit from competition. As
globalization takes hold, the entrepreneur will have little choice but to
innovate. New ideas are transformed into new products or services and/or new
and more efficient ways of manufacturing or providing products or services
through innovation. It is an important aspect of the entrepreneurial skillset
needed to start and run a firm. However, for innovation to thrive, the
entrepreneur must foster a conducive environment that is heavily influenced
by the attitudes and behaviors of entrepreneurs, who play such an important
part in all corporate activities.

The Product in Relation to the Market

A product is a manifestation of generated usefulness and intrinsic value-
added that has a market value or price associated with it. It is expected that
the proposed product will clearly and fully identify its important and relative
dimensions in this section of the module. This can be done so by discussing the
commodity through any of the following dimensions:
1. Scientific Name and Property. A commodity can be introduced by
talking about its scientific existence and features that contribute to the
product's unique selling point and competitive advantage over its
immediate competitors' offers.
2. Distinctive Features or Uniqueness. Another way to describe the product
is to look at its distinguishing characteristics, uniqueness, and degree of
differentiation. Discourses are conducted by contrasting its originality
and much higher value-added components with other market offerings.
The physical component of the product (e.g., weight, height, design,
color, and so on) is given special attention, especially if the commodity
is a tangible one. On the other hand, intangible commodities can be
characterized in terms of their unique processes and procedures that
result in differentiated services.
3. Benefits it brings. A full overview of the product's benefits to the target
end-user can also be used to present the product. Benefits can also be
identified and articulated in this section. These dimensions can be used
independently or in combination as needed to fully explain the essence,
functionality, and purpose of the product.
The product can be categorized into two:

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 1. Tangible product refers to products that can be seen, touched, taste,
and smell. Physical existence is a primary criterion. (e.g., automobiles,
whiteboard markers, television, etc.)
2. Intangible product refers to products that are unseen but felt.
Focused is on the concept, processes, procedures, and service
delivery. (e.g., health-related spa, cargo forwarding business,
tourism-related business, etc.)

Things to Consider in Determining Product/Service to offer

1. Location. The product must find its way to the target market, which is always
done through a carefully chosen venue. Instead of waiting for the goods to
sprout legs and walk to the market, the business owner should choose a
location where sales may be made. A customer's chosen product should
preferably be purchased in the lowest amount of time. It is not only about
the point of sale; it is also about the manufacturing facility. The production
site must be easily accessible to workers and raw material sources to keep
transportation costs down. The choice of location for business operation
(both for office and production purposes) be articulated with concrete
justification on the parameters of:
a. Proximity. When choosing a business location, the accessibility and
distance to suppliers, raw materials, labor skills required, and the
target market must all be considered. The associated expenses of
transportation and delivery of essentials are causing concern.
b. Office and Plant Layout. A blueprint of the office and factory layouts,
along with technical measurements and specifications, is presented.
Cost implications must be recognized and assessed correctly before
being included in the technical/operational and financial plans. This
business plan section should include a sketch of the office and
factory layout, landmarks, and thoroughfares. If no structural
infrastructure is planned, lease (rent) costs should be included to
account for all expenditures associated with expanding the
proposed organization's capacity.
2. Customers. These are the people who will buy your product—the target
market for a company's products and services and the focus of its
marketing activities. In order to establish a marketing plan, you must first
identify your target market. Geography, purchasing power, demographics,
and psychographics can all be used to distinguish a target market from the
rest of the market.
3. Environmental Analysis. An entrepreneur's strategic and clever "must-do" is
to scan the environment. Knowing the market's size and scope and its
uniqueness and patterns is critical to the company idea's viability. The

6
 failure of a firm is frequently attributable to a lack of awareness of the
environment in which it operates.

Demand and Supply Determination

It is critical to understand the demand and supply of a specific product
before deciding what products or services to provide in the market.

Demand
1. Historical demand. These are secondary data that show previous
demand for specific goods and services across a specified period.
2. Current demand. These are data or information about the present
consumption or patronage of a product.
3. Projected demand. It pertains to the forecasted value of demand
utilizing statistical forecasting tools.
4. Potential demand. An estimated and prospective needs, wants, or
desires necessitate a business organization's reaction to deliver proper
satisfaction.
5. Satisfied demand is a demand that has been met by a supply or existing
requirement at a satisfactory level. Simply put, this item has been used
up.
6. Unsatisfied demand. A demand gap indicates unsatisfied demand.
When demand surpasses supply, some demands are not being met
adequately in the market.

Supply
1. Historical supply. Previous data represent the number of goods and
services that have been produced and consumed.
2. Current supply. These are data of the present amount of commodities
available in the market for procurement and consumption.
3. Projected supply. Scientific estimates of the future amount of goods and
services produced or supplied by the producers, suppliers,
manufacturers, or entrepreneurs.

Gaps
The demand and supply gap is dependent on the viability or feasibility
of a company proposal. A product's demand must be greater than the
available supply on the market. When demand surpasses supply, suppliers are
forced to fill a gap in the market. As a result, determine whether such demand
and supply gaps will occur soon. Establishing such a gap and anticipating its
market existence is a critical component in deciding whether or not to follow
the proposed business idea.

7
 What I Can Do

Activity 1: Identification
Directions: Analyze the situations/problems below and identify what
product/service can be offered to solve the problem.

1. Jason recently bought a brand-new phone, and he is worried about the

possible scratches on its screen.
2. Bien and his friend are about to start schooling, and their house is five
kilometers away from the school.
3. Denver’s farm harvested too much banana, which resulted in
oversupply.
4. COVID-19 pandemic hits Palawan gravely.
5. People nowadays are being hooked to keeping photographs as
souvenirs.

Activity 2: Let’s Investigate.

Directions: Look around your community. Identify at least five human needs
and wants (problems) and propose a product or service that could solve the
identified problem. On a separate sheet of paper, write your answer using the
Table below:

Identified Problem Causes Your solution

(Products or Services)

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 What’s More

Activity 3: Let’s think

Directions: Read and understand the given situations below and answer the
corresponding questions.

Palawan is one of the most visited tourist destinations in the

Philippines. The beauty of its white and fine sand and long beaches
attract more tourists every year. It resulted in an increased demand
for tourism-related businesses such as restaurants, hotels, recreation
establishments, and even the transport sector.
Given this scenario, you can possibly think of the possible products or
services that you might establish to cater to the needs of the local
and international tourists. You might also consider starting the
business with a minimum capital of P30,000.00.

Questions:
1. What business would you plan to establish? Why?
_____________________________________________________________________

2. What products/services will you offer? Why?

_____________________________________________________________________

3. What problem or need would be solved?

_____________________________________________________________________

Rubrics for Activity 2 and 3

Score Standards
5 The answer is correct, clear, concise, and relevant; grammatically
correct
4 The answer is somehow correct, clear, concise, and relevant; with
minimal grammar errors
3 The answer is vague; grammatically incorrect

9
Activity 4: Product Conceptualization

Directions: Your task is to develop an idea about a specific product in demand

during this pandemic crisis. The product is already on the market. What you
must do is innovate that particular product for product innovation to meet the
community's needs—conceptualizing all the ideas by writing, listing, or putting
them in a graphic organizer to show the product concept.

Rubric in Rating Activity 4

Score Standards
1 Demonstrated little understanding of the task
2 Demonstrated gaps in their understanding of the task
3 Demonstrated understanding of the task, even though some
supporting ideas or details may have been overlooked or
misunderstood
4 Demonstrated substantial understanding of the content,
processes, and demands of the task

What I Have Learned

Activity 5: Complete Me!

Directions: Complete the given statement with the knowledge you acquired
or if there are unclear concepts that concern you from this lesson. Bear in mind
to accomplish the task with honesty.

I learned… I need help with…

The lesson helped me… I have a question…

I am still confused about… I could use this information…

10
 Assessment

Direction: Choose the letter of the best answer and write it on a separate sheet
of paper.

1. Which refers not only to the Point of Sale but also about the production site?
a. Customer c. Environment
b. Location d. Proximity

2. Which of the following pertains to the forecasted value of demand utilizing

statistical forecasting tools?
a. Historical demand c. Projected demand
b. Current supply d. Current demand

3. Which of the following is INCORRECT?

a. Innovation is another crucial aspect of entrepreneurship.
b. Marketing is an excellent tool for identifying and acting on these
differentiators.
c. The product must find its way to the target market, which through a
carefully chosen proximity.
d. The failure of a firm is frequently attributable to a lack of awareness of
the environment in which it operates.

4. Which of the following is NOT an example of an intangible product?

a. Cargo forwarding business c. Karaoke set
b. Health-related spa d. Tourism-related business

5. It is a manifestation of created utility and intrinsic value-added that has a

corresponding market value or price.
a. Demand c. Supply
b. Customers d. Product

6. Which of the following refers to transforming new ideas into a new product
or service and/or by a new and more efficient way of producing or
delivering products or services?
a. Innovation c. Creativity
b. Product d. Demand

11
7. It refers to the individuals and corporations who buy goods and services
from another company.
a. Company c. Supplier
b. Customer d. Manufacturer

8. This refers to products that can be seen, touched, taste, and smell.
a. Tangible product c. Intangible Product
b. Edible product d. Non- Food product

9. Which of these is an indicator of unsatisfied demand?

a. Demand gap c. Satisfied customer
b. Current Demand d. Demand

10. Which product dimension is concerned with its distinguishing

characteristics, distinctiveness, and degree of differentiation?
a. Benefits it bring c. Scientific Name and Property
b. Distinctive Features or Uniqueness d. Branding and packaging

11. It refers to the present amount of commodities that are available in the
market for procurement and consumption.
a. Historical supply c. Historical demand
b. Current supply d. Projected Demand

12. It is a blueprint of the office, and plant layouts are provided with the
corresponding technical measurements and dimensions.
a. Proximity c. Demand
b. Location d. Office and Plant layout

13. When demand exceeds supply, what do we have?

a. Desire c. Needs
b. Gaps d. Wants

14. It pertains to the previous data representing the number of goods and
services produced and consumed.
a. Current supply c. Historical supply
b. Projected supply d. Supply

15. Which perspective is describing the product through its distinctive features,
uniqueness, and degree of differentiation?
a. Benefits c. Tangible product
b. Location d. Uniqueness
12
 13
What I know Assessment
1. A Activity 1 1. B
2. C 1. Screen protector 2. C
3. B 2. Motor cycle / transport business 3. C
4. D 3. Banana cue and other banana-based 4. C
5. A products 5. D
6. D 4. Mask / medicines / face shield 6. A
7. B 5. Camera / photography shop 7. B
8. A 8. A
9. C 9. A
10. D 10. B
11. B Activity 2, 3, 4 and 5 11. B
12. B Learners’ answers might vary. Please see 12. D
13. B the rubrics prepared to grade the 13. B
14. C assessment 14. C
15. B 15. D
Answer Key
References

Alminar-Mutya, Ruby F. Elements of Marketing. Fourth Edition. Mandaluyong

City: National Bookstore. 2007

Cuyugan, Jorge. Business Planning. San Fernando, Pampanga: Bright

Concepts Printing House. 1996

Edralin, Divina M. Entrepreneurship. Philippines: Vibal Group, Inc, 2016.

Fajardo, Feliciano. Entrepreneurship. Mandaluyong City: National Bookstore.
2009

Medina, Roberto G. Entrepreneurship and Small Business Management,

Sampaloc Manila: REX Printing Inc. 2010
Morato, Jr., Eduardo A. Entrepreneurship. Philippines: Rex Bookstore, Inc. 2016

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For inquiries or feedback, please write or call:

Department of Education – SDO Palawan

Curriculum Implementation Division Office

2nd Floor DepED Palawan Building
Telephone no. (048) 433-3292

Learning Resources Management Section

LRMS Building, PEO Compound
Telephone No. (048) 434-0099

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