Entrepreneurship WEEK3

ENTREPRENEURSHIP
The Potential Market and the Market Need
SHS-Teacher
OPENING PRAYER
GREETINGS…………ATTENDANCE
EXPECTATIONS
• At the end of the lesson, you are expected to:
recognize a potential market and analyze the market need.
TO CHECK YOUR PRIOR KNOWLEDGE ABOUT THE TOPIC, PLEASE
ANALYZE THE PICTURES BELOW AND LIST DOWN AT LEAST THREE (3)
POTENTIAL MARKETS THAT ENTREPRENEURS SHOULD CONSIDER DURING
THIS COVID -19 PANDEMIC AND INDICATE THEIR NEEDS..
PRE-TEST
Potential Market Market Need
MULTIPLE CHOICE. WRITE THE LETTER
OF THE CORRECT ANSWER THAT BEST
COMPLETE THE SENTENCE
• ______1. All are core competencies in Entrepreneurship, except:
❑ A. basic bookkeeping/ accounting skills
❑ B. communication skills
❑ C. building relations with customer
❑ D. building competitive advantage
• ______2. Which of the following is not a business competency? This competency covers the
outcomes required to build, _____ and grow a micro/small-scale enterprise - like developing and
maintaining small-scale business, establish customer base, and manage business finances.
❑ A. Establish customer service
❑ B. Manage finances
❑ C. Preparing business letters
❑ D. Monitoring operations
• ______3. Which is not a goal of entrepreneurial competency?
• A. Expanding the enterprise B. Expanding markets and clientele
• C. Developing individuals and teams D. Enhancing one’s business skill
______4. All are important aspects of Entrepreneurship as a course, except:

❑ A. Discussion on economic issues and concerns.
❑ B. Explanation of key concepts of competencies in Entrepreneurship.
❑C. Discussion on the relevance of the course.
❑D. Exploration of career opportunities.
_______5. Which of the following does not cover a high-performing enterprise?
❑A. Build and develop the enterprise to be more competitive within a

changing business environment.
❑B. Creating gaps among employees.
❑C. Responding to consumers’ demand.
❑D. Maintaining product quality and accessibility.
THE POTENTIAL MARKET
Potential market
➢is the part of the total population that has shown some level of interest in
buying a particular product or service. Potential market is also called Total
addressable market (TAM)
➢is the part of the market you can capture in the future. It includes the
demographic groups that are not currently your customers but could
become customers in the future.
➢is the total demand for a product in a given business environment
THE IMPORTANCE OF POTENTIAL
MARKETS
❖Potential markets are an important part of a business's future growth.
❖Ensure the future of your business by identifying new customers.
❖ Think proactively about ways for your business to grow and change.
❖ Show the potential of your business to investors or collaborators.
❖Increase your revenue.
❖ Create a plan B that will weather changes in the economy or market.
HOW TO IDENTIFY YOUR
POTENTIAL MARKETS
❑Consider every target demographic that you

currently sell to, as well as those you have not yet
targeted. Identify what they have in common with
each other, new milestones that they will encounter
in their lives that will impact their buying patterns,
and where they overlap or diverge from your current
customers
ASK YOURSELF THESE QUESTIONS THAT WILL HELP YOU
IDENTIFY BOTH NEW WAYS TO MARKET YOUR CURRENT
PRODUCTS OR SERVICES, AS WELL AS NEW PRODUCTS AND
SERVICES THAT YOU CAN BEGIN SELLING.
❑What other products do my customers need now?
❑What related products will they need in the future?
❑Who else could make use of the products I am
selling now?
❑What demographic information does that new
group have in common with my current customers?
❑What demographic information does that new
group have in common with each other?
For example, a business that makes face masks and PPEs could
identify potential markets such as:
❑Hospitals and other health related industries whose employees

are prone to COVID -19 virus and other viruses.
❑Business industries and other organizations who want to ensure
the health condition of their employees.
❑Employees and workers who need to report to work to earn
income.
❑Households who needs to go out for their necessities.
➢Note: Depending on the size and age of your company, as well

as your industry, you may have a clear picture of the potential
markets that are available.
REACHING YOUR POTENTIAL
MARKET
• Once you've identified and chosen a potential market to begin targeting,
you will need new marketing strategies in place to communicate with them.
Use this profile to identify:
❖The demographic information that people in a group have in common.
❖The best forms of media to reach them.
❖How they prefer to shop and make purchases.
❖The concerns, struggles, or problems that you can help them overcome.
❖What values matter to them, both in everyday life and when shopping.
❖The language that resonates with them.
THE FIGURE BELOW DEPICTS WHAT IS A POTENTIAL
MARKET WITH RESPECT TO THE TOTAL
POPULATION AND HOW IT CAN BE CONVERTED
TO A PENETRATED MARKET:
AVAILABLE MARKET
Prospects who are willing and capable (have

sufficient resources) buyers, and have access to a
particular market or service
Defined as the number of people who are both

willing and capable of buying a particular product or
service in a particular market
TARGET MARKET
❑Refers to a group of potential customers to whom a

company wants to sell its products and services.
Target markets are generally categorized by age,
location, income, and lifestyle. Defining a specific
target market allows a company to home in on
specific market factors to reach and connect with
customers through sales and marketing efforts.
PENETRATED MARKET
❑A set of customers or clients who are already

using a particular product or service.
❑ A penetrated market means that the
potential users of a product or service are
aware of it, and in many cases are active
consumers of it.
THE MARKET NEED
Need = A motivating force that compels action for its satisfaction.
• Needs range from basic survival needs (common to all human beings)
satisfied by necessities, to cultural, intellectual, and social needs (varying
from place to place and age group to age group) satisfied by necessaries
• A driver of human action which marketers try to identify, emphasize, and
satisfy, and around which promotional efforts are organized
Market = is a place where two parties can gather to facilitate the exchange
of goods and services.
The parties involved are usually buyers and sellers.
BELOW ARE WAYS TO DEFINE
YOUR MARKET
❑Consider whether the business offers a new solution to an old problem or
complements an emerging trend.
❑Have a clear picture of your target market.
❑Determine the benefits that your product or service offers.
❑ Examine industry data that can confirm whether there is a sustained,
growing demand for your product or service.
❑Identify the percentage of market share that it is realistic for you to capture.
The more competition you have, the lower the margins will be.
❑Consider how realistic your pricing is. How can you present your product or
service to potential customers so that it appears to be a good value, while
still affording you a healthy profit?
EXERCISES: READ AND ANALYZE THE STATEMENTS BELOW
ABOUT “MARKET”. DETERMINE WHETHER THE STATEMENT IS
TRUE OR FALSE. WRITE TRUE IF THE STATEMENT IS CORRECT
AND WRITE FALSE IF OTHERWISE.
READ AND ANALYZE THE GIVEN SITUATIONS
BELOW. IDENTIFY WHETHER THIS REFERS TO
EXISTING CUSTOMER, PROSPECTS, OR TARGET
MARKET USERS.
ASSIGNMENT:
READ AND ANALYZE THE STATEMENTS BELOW AND IDENTIFY WHETHER
THIS REFERS TO POTENTIAL MARKET, AVAILABLE MARKET, TARGET
MARKET, OR PENETRATED MARKET.

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ENTREPRENEURSHIP

The Potential Market and the Market Need

______4. All are important aspects of Entrepreneurship as a course, except:

❑A. Build and develop the enterprise to be more competitive within a

❑Consider every target demographic that you

❑Hospitals and other health related industries whose employees

➢Note: Depending on the size and age of your company, as well

Prospects who are willing and capable (have

Defined as the number of people who are both

❑Refers to a group of potential customers to whom a

❑A set of customers or clients who are already

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