Recognize A Potential Market: Identifying The Market Need

Recognize a Potential
Market
Identifying the Market Need
Market Needs
 Businesses should start by knowing the

consumer's interests, desires, and needs. It is
easier to sell what consumers want and need
than try to sell something they do not see the
benefit in buying.
Market Needs
 Market needs inform organizations about

what products to develop, for what
customers, at what cost, and through which
distribution channels, reducing the
uncertainty that a new product/service
development always brings with it.
Definition of
Terms
Size of Market
 This is the group of people who

are likely to buy your product or
service.
For example, if you want to put up a bakeshop
with a target market of 3,000 individuals of
different ages.
Understand Your Customer Profile
 In order to determine the size,

you need to understand who your
ideal customer is.
For instance, identify the customers who
love to eat freshly baked breads and hot
pandesal.
Personal Similarities in Market
 Often, the group you're targeting has

similarities when you look at the
personal lives of those in that group.
This includes marital status,
education levels, type of career, as
well as family size and income levels.
Consider Cultural Components
 A marketing plan should consider the

geographic and cultural elements of
your target group. These could have a
significant difference on how what
the buyers want to buy or even how
they buy it.
Special Interests or Needs
 learn about the size of your market,

based on very specific information.
Market Research
 is a critical component when you’re launching a
product, try to improve your existing service, or
when you’re just looking to be a step ahead of
your competitors.
5 Things that
market research can
do for you in the
process of product
development &
business growth:
1. It is crucial for a better understanding
of your customers Market research will
help you map out the full profile of
your ideal customer. Knowledge of
your customers will help you determine
the market size and what triggers them
to buy.
2. Knowledge about your competitors,
and how they approach the market
Market research will help assess the
market to identify both key players
and those on the rise. Furthermore, it
will help you find the weaknesses in
your competitor’s approach.
3. Testing your product before
launch
By market testing your idea or
product, you will save yourself from
additional expenses and most
importantly, from delivering a bad
product to the marketplace.
4. You won’t go out of business
In order to remain in business and
stay relevant, you should not only
anticipate change, but you need to
be able to predict change too.
5. Business growth
Market research helps you comprehend the
demands of your customers, detect more
business opportunities, plan the perfect
marketing campaign, minimize losses, and keep
track of the competition. It allows organizations
to classify their objectives while following the
current trends and take advantage by reaching
out to their target audience.
The process of market
research itself is designed to
reduce the risk and to make
the marketing strategy cost-
effective for your business.
Choosing a Product or
Service to Sell
 Develop the ability to select
and offer the right products or
services to your customers in a
competitive market.
 Think before deciding
what to sell.
 So how do you start? To make
a product successful, you must
be personally and emotionally
committed to its success. Once
you've got a product or service
in mind, you need to begin
with a self-analysis.
How to Make Sure There's
a Market for Your
Business Idea
Accept the market as a harsh, but
1 fair judge.
-Embrace the reality that the

market will ultimately dictate
your success. That means you
have to make sure the
numbers support your idea.
Pick proven categories, then find
2 your place.
-Broad proven categories

typically offer greater
opportunities than hot
new markets.
Focus on wallet share, not market
3 share.
-Think about how you can

retain your customers for
repeat business so you can
get an exponential return on
your initial advertising or
marketing investment.
4 Put your ideas to the test.
-Better to pay the price in

terms of time and effort now
in order to learn what you
don't know about your market
and buyer.
Design thinking
- is a human-centered approach to
innovation that draws from the
designer’s toolkit to integrate the
needs of people, the possibilities of
technology, and the requirements
for business success – Tim Brown,
president and CEO.
Design thinking:
3 Spaces to keep in mind
1. Inspiration is the problem or
opportunity that motivates the search for
solutions.
2. Ideation is the process of generating,
developing, and testing ideas.
3. Implementation is the path that leads
from the project stage into people’s lives.
Activity 1: My Business Proposal
Directions: Think of a product or service that
you can propose for the business based on
your spotted business opportunity. Write your
proposed idea based on the matrix below and
post a sample picture of a similar product or
service you wanted to offer.
What business What is the Who are my

am I interested purpose of my target
to engage? business? customers?
Sample Picture

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Recognize a Potential

 Businesses should start by knowing the

 Market needs inform organizations about

 This is the group of people who

 In order to determine the size,

 Often, the group you're targeting has

 A marketing plan should consider the

 learn about the size of your market,

-Embrace the reality that the

-Broad proven categories

-Think about how you can

-Better to pay the price in

What business What is the Who are my

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