2. LEARNING OBJECTIVES
1. Identify the possible product/s or service/s that
will meet the need.
2. Develop a short plan in providing the products and
services to address the needs.
3. Use critical thinking in accomplishing tasks given.
3. Entrepreneurial Ideas
The creation of an entrepreneurial ideas
leads to the identification of entrepreneurial
opportunities, which in turn results in the
opening of an entrepreneurial venture.The
entrepreneurial process of creating a new
venture is presented in the diagrambelow.
(Aduana, 2017)
4.
5. Essentials in Entrepreneur’s Opportunity Seeking
These are the basic foundation that the entrepreneur
must have in seeking opportunities:
•Entrepreneurial mind frame. This allows the
entrepreneur to see things in a very positive and
optimistic way in the midst of difficult situation.
Being a risk - taker, an entrepreneur can find solution
when problems arise.
6. Essentials in Entrepreneur’s Opportunity Seeking
•Entrepreneurial heart flame. Entrepreneur's driven
passion, they are attracted to discover satisfaction in
the act and process of discovery. Passion is the great
desire of an entrepreneur to achieve his/her goals.
7. Essentials in Entrepreneur’s Opportunity Seeking
•Entrepreneurial gut game. This refers to
the ability of the entrepreneur of being
intuitive. This also known as intuition. The
gut game also means confidence in one’s
self and the firm believes that everything
you aspire can be reached.
8. Sources of Opportunities
There are many ways to discover opportunities.
Looking at the big picture some have noticed the
emerging trends and patterns for business
opportunities. While others are trying to find out their
target market.
9. Sources of Opportunities
Some are the following sources of opportunities:
1. Changes in the environment
Entrepreneurial ideas arise when changes happen in
the external environment. A person with an
entrepreneurial drive views these changes positively.
External environment refers to the physical
environment, societal environment, and industry
environment where the business operates.
10. Sources of Opportunities
1.1 The physical environment includes
a. Climate- the weather conditions.
b. Natural resources- such as minerals, forests, water,
and fertile land that occur in nature and can be used
for economic gain.
c. Wildlife- includes all mammals, birds, reptiles, fish,
etc., that live in the wild.
11. Sources of Opportunities
• 1.2 The Societal environment includes the various forces like
a. Political forces- includes all the laws, rules, and regulations that
govern business practices as well as the permits, approvals, and
licenses necessary to operate the business.
b. Economic forces- such as income level and employment rate.
c. Sociocultural forces- customs, lifestyles and values that
characterize a society.
d. Technological environment- New inventions and technology
innovations.
12. Sources of Opportunities
• 1.3 The industry environment of the business includes:
a. Competitors
b. Customers
c. Creditors
d. Employees
e. Government
f. Suppliers
13. Sources of Opportunities
•For example, one factor in the physical environment
that can easily change is the climate. The
temperature is very high during summer but very low
during the rainy season. An individual with
entrepreneurial drive can be extremely imaginative
and inventive in identifying opportunities. He/she
can venture a business that responds to the needs of
the people during summer and rainy season.
14. Sources of Opportunities
2. Technological discovery and advancement
A person with entrepreneurial interest sees possibility
of business opportunities in any new discovery or
because of the use of latest technology. For example,
an individual with knowledge in repair and installation
of a machine engine discovers that additional engine
parts that considerably reduce fuel consumption.
15. Sources of Opportunities
3. Government’s thrust, programs, and policies
The priorities, projects, programs, and policies of the
government are also good sources of ideas. For example, the
use of firecrackers to celebrate New Year’s Eve is strictly
prohibited. People without entrepreneurial interest will view
the ordinance as a plain restriction. However, for an
entrepreneur, it is a business opportunity to come up with a
new product that will serve as a substitute for firecrackers.
16. Sources of Opportunities
4. People’s interest
The interest, hobbies, and preferences of
people are rich source of entrepreneurial ideas.
Like the increasing number of Internet Café at
present could be lead to the strong attachment
of young people to computers.
17. Sources of Opportunities
5. Past experiences
The expertise and skills developed by a person who
has worked in a particular field may lead to the
opening of related business enterprise. For example an
accountant who has learned the appropriate
accounting and management skills and techniques in a
prominent accounting firm can start his/her business
venture by opening his/her own accounting firm.
18. Sources of Opportunities
5. Past experiences
The expertise and skills developed by a person who
has worked in a particular field may lead to the
opening of related business enterprise. For example an
accountant who has learned the appropriate
accounting and management skills and techniques in a
prominent accounting firm can start his/her business
venture by opening his/her own accounting firm.
19. The Possible Product/s or Service/s that will
Meet the Need
To succeed as an entrepreneur, you must develop the ability
to select and offer the right products or services to your
customers in a competitive market. Ultimately, the need is
the driver of every entrepreneur. Business operators often
look at the customer need as an opportunity to resolve or
contribute to the need which is providing a right product and
services. More than any other factor, your ability to make this
choice will determine your success or failure (Tracy, B.,
2015).
20. The Possible Product/s or Service/s that will
Meet the Need
Once you have the product or service in mind, you need to begin
with a self-analysis (Tracy, B., 2015): 1. What kind of products do
you like, enjoy, consume and benefit from? 2. Do you like the
product or service you are planning to sell? 3. Can you see
yourself getting excited about this product or service? 4. Would
you buy it and use it yourself? 5. Would you sell it to your
mother, your best friend, your next-door neighbor? As would-be
entrepreneurs, there is a need to find the right products or
services for your target market. The product or service should
deliver superior customer value (Claessens, M., 2015).
21. Concepts about Product and Service
A product can be defined as anything that we can offer to
a market for attention, acquisition, use or consumption
that could satisfy a need or want. However, the definition
of product does not only involve tangible goods such as a
car, a fridge or a phone. The definition is extended to
include intangible objects as well, because they can be
offered to a market. Therefore, the broad definition of
product includes services, events, persons, places,
organizations, or even ideas .
22. Concepts about Product and Service
Services are special form of product which consists
of activities, benefits or satisfactions offered for
sale that are intangible and do not result in the
ownership of anything. A service can thus include
banking, airline travel, communication services,
hotel services and so on
23. The Difference between Product and Service
Tangible vs. Intangible
Assessing the quality of a tangible product is very easy. Since
most products are countable, touchable, and visible, a
consumer can assess its durability by examining it.
In a nutshell, the client lacks sufficient knowledge about the
inspector’s expertise until the task is already in progress. The
customer can read online reviews, ask for the inspector’s
credentials, as well as before and after pictures of his previous
work, but there’s no definite way of evaluating the quality of a
service until it’s rendered.
24. The Difference between Product and Service
Production vs. Interaction
A potential car buyer usually checks the car’s body lines, feels the
leather used on the seats, and takes the car for a test drive before
deciding whether to buy the car or not.
But what about the service the car buyer receives from the car dealer?
The way a car salesperson interacts with one buyer is not the same way he
interacts with another buyer. If the car buyer is lucky, he may find a
salesperson who is well-informed, courteous, and is willing to negotiate. If
he’s not, the car salesperson might be one who lacks information or
behaves in a nonchalant way.
25. The Difference between Product and Service
Perishable vs. Imperishable
The best way to illustrate perishable products is to consider a restaurant
owner. If such an individual does not understand the concept of spoilage
and waste reduction, he risks ruining his business since most fresh foods
spoil within a few days. Another example is technology. Even some
intangible products like software become obsolete at some point.
Imperishable products include items like jewelry and automobile parts.
However, does the distinction between perishable and imperishable exist
in services? Services can be described as perishable but not imperishable.
A perishable service simply means that it’s short-lived. Ideally, such a
service is consumed as soon as it is produced. Unlike products, the service
cannot be stored for later use.
26. Identifying and Meeting Customer Needs
Customer needs are the named and unnamed needs
of customers when they come in contact with the
different business establishments or when they
search for the solutions which businesses provide.
27. Why “Identifying Customer Needs” matter?
1. Correctly identifying customers’ needs is essential for
ensuring customer satisfaction and loyalty.
2. Customers have unique needs.
3. Often, customers either aren’t clear about what they
need or they don’t really know what they want.
4. Identifying clients’ needs creates satisfied customers,
and satisfied customers are less likely to have reason to
enter into disputes with the organization or contemplate
legal action.
28. ACTIVITY TIME!
Direction: Imagine yourself a seller of certain Mobile Phone. Use your available
brand of Mobile Phone to sell. List down the product features, specifications and
attributes, and possible benefits to the customers using the guide questions:
Mobile Phone Brand: __________________
1. What are the main features or attributes of the product?
2. What benefits will users gain from each product feature?
3. What are the main applications of the product?
4. What makes your product different from other similar products on the
market?
5. Is the product worth the price?
29. Why “Identifying Customer Needs” matter?
•Selecting a Business Idea
•Find something you love to do and are good at
doing
•Can your idea satisfy a need in the
marketplace?
•Entrepreneurs must be sure that the idea they
choose has interest in the marketplace
