Asian Institute for Technology and Education
ENVIRONMENT
AND MARKET
Electrical Installation and
Maintenance
OBJECTIVES
• Explain what makes a product unique and
competitive
• Apply creative and innovative techniques
to develop marketable product and employ
a unique selling proposition (USP) to the
product.
Environment and Market
The opportunities in the business environment are factors that
provide possibilities for a business to expand and make more
profit. Aspiring entrepreneur need to explore the economic,
Vision
cultural, and social conditions prevailing in an area. Needs and
wants of the people in a certain area that are not met may be
considered business opportunities.
Identifying the needs of the community, its resources, available
raw materials, skills, and appropriate technology can help a new
entrepreneur seize business opportunities. To be successful in
any kind of business venture, potential entrepreneurs should
look closely at the environment and market. They should always
be watchful of existing opportunities and constraints, and to
take calculated risks.
Environment and Market
One of the best ways to evaluate opportunities and constraints
is to conduct a Strengths, Weaknesses, Opportunities and
Threats (SWOT) Analysis. SWOT Analysis is a managerial tool
Vision
used to assess the environment.
It is used to gather important information which is then used in
strategic planning. Strengths and weaknesses are internal in an
organization. They relate to resources owned by an organization
that you have control over and also the extent of its marketing.
Opportunities and threats exist in the external environment.
Opportunities relate to the market, new technologies, and the
external factors such as government policies, climate, and
trends. Threats replace what the competitors are doing. It also
includes legal and other constraints.
PRODUCT DEVELOPMENT
The term Development refers collectively to the entire process of
identifying a market opportunity; creating a product to appeal to the
identified market; and testing, modifying, and refining the product until it
becomes ready for production.
Product development may involve modification of an existing product or
its presentation, or formulation of an entirely new product that satisfies a
newly defined customer's needs, wants and/or a market place. It refers to
all of the stages involved in bringing a product from concept or idea,
through market release and beyond. Incorporates a product's entire
journey, including: Identifying a market need, Conceptualizing and
designing the product.
PRODUCT DEVELOPMENT
PRODUCT DEVELOPMENT
Everyone has different concepts about needs and wants. To
illustrate, needs in business are important things that even
individual cannot live without in a society. These include:
1. Basic commodities for consumption
2. Clothing and other personal belongings
3. Shelter, sanitation and health; and
4. Education.
PRODUCT DEVELOPMENT
Basic needs are essential to every individual so he/she can live
with dignity and pride in a community of people. These needs can
obviously help you generate business ideas and subsequently to
product development.
Wants are desires luxuries and extravagance that signify a wealthy
and expensive way of living. Wants or desires are considered above
all the basic necessities of life. Some examples are the eagerness
or the passion of every individual: fashion accessories, expensive
shoes and clothes, traveling around, eating in an expensive
restaurant, watching movies, concerts, and having luxurious cars,
wearing expensive jewelries and perfume. living in impressive
homes, and others are also exampling of people's wants and
desire.
PRODUCT DEVELOPMENT
People's needs and wants are the basic indicators of the kind of
business that you may engage into because they can sent as the
measure of your possible success. Some other good points that
might be considered in business undertakings are the kinds of
people with special needs, wants, lifestyles, culture and tradition,
and social orientation. To summarize. product development entirely
depends on the needs and wants of the customers.
CONCEPT OF DEVELOPING A PRODUCT
Concept development is a critical phase in the development of a
product. In this stage, the needs of the target market are
identified; competitive products are reviewed before the product
specifications are defined. The product concept is selected along
with an economic analysis to come up with an outline of how a
product is being developed.
1. Identify customer needs
Using survey forms, interviews, researches, focus group
discussions, and observations, an entrepreneur can easily
identify customers' needs and wants. In this stage, the
information that can be possibly gathered here are product
CONCEPT OF specifications (performance, taste, size, color, shape, life span
of the product, etc.). This stage is considered important
because this would determine the products to be produced or
provided.
DEVELOPING
2. Establish target specifications
A PRODUCT Based on customers' needs and reviews of competitive products,
you can now establish target specifications of the prospective
new product and/or services. Target specifications are essentially
a wish-list.
3. Analyze competitive products
It is imperative to analyze existing competitive products to provide
important information in establishing products/services specifications.
Other products may exhibit successful design attributes that should
be emulated or improved on in the new product/service.
4. Generate product concepts
After having gone through with the previous processes, you
may now develop a number of product concepts to illustrate
what types of products/services are both technically feasible
fitting to the requirements of the target specifications.
CONCEPT OF
DEVELOPING
5. Select a product concept
A PRODUCT Through the process of evaluation between attributes. final
concept is selected. After the final selection. additional market
research can be applied tc gather feedback from the
representative customers.
6. Refine product specifications during this stage
The product/ service specifications are refined on the basis of input
from the foregoing activities. Final specifications are the result of
extensive study. Expected service life and projected selling price and
among others are being considered in this stage
7. Perform economic analysis
Throughout the process of product development. it is very
important tc review and estimate the economic implications
regarding development expenses. manufacturing costs, and
selling price of the product/ service to be offered/ provided.
CONCEPT OF
DEVELOPING
8. Plan the remaining development project
A PRODUCT During this final stage of concept development, you must
prepare a detailed development plan that includes list of
activities, necessary resources and expenses. and development
schedule with milestones for tracking progress.
FINDING VALUE
People buy products for many reasons. There must be something in your
products/ services that have satisfied or impressed the consumers. In
short, when you meet their expectations, they will continue patronizing
your products/ services.
The value that you incorporate to your product is called value
proposition. Value proposition is "a believable collection of the most
persuasive reasons why people should notice you and take the action
you're asking for." Value is created by fulfilling deep desires and solving
deep problems. This is the reason why people spend for your
products/services
INNOVATION
Innovation is the introduction of something new in your
products/services. This may be a new idea, a new method or a new
device. If you want to increase your sales and profit, you must innovate.
Some of the possible innovations for your products include changing of
packaging, improving of taste, color, size, shape and adjusting the prices.
Some of the possible innovations in providing services are application of
new improved methods, additional featured services and freebies.
UNIQUE SELLING PROPOSITION (USP)
Unique Selling Proposition is a factor or consideration presented by a seller to
explain why one product or service is different from or better than the other
competitors. Before selling your product or service to your target customers,
you have to sell yourself to it. This is especially important when your product
or service is similar to those around you.
USP would require careful analysis of other businesses' ads and marketing
messages. If you analyze what they say or what they sell, not just their
product or service characteristics, you can learn a great deal about how
companies distinguish themselves from competitors.
UNIQUE SELLING PROPOSITION (USP)
Ways to discover your USP to increase your sales and profits:
• Use empathy. Put yourself in the shoes of your customers. Always focus on
the needs of the target customers and forget falling in love with your own
products/services. Always remember, you are making and providing these
products/services for the target customers to eventually increase sales and
earn profit. Essential questions such as what could make them come back
again and ignore competitions should be asked to oneself. Most possible
answers may be focused on quality, availability, convenience, cleanliness,
reliability and friendliness of the products/services.
UNIQUE SELLING PROPOSITION (USP)
Ways to discover your USP to increase your sales and profits:
• Identify Customer's Desires. It is important that you understand what drives
and motivates your customers to buy your products/services. Make some
efforts to find out, analyze and utilize the information what motivates the
customers in their decisions to purchase the product or service.
UNIQUE SELLING PROPOSITION (USP)
Ways to discover your USP to increase your sales and profits:
• Discover customer's genuine reasons for buying the product. Information is
very important in decision making. A competitive entrepreneur always
improves their products or services to provide satisfaction and of course
retention of customers. As your business grows, you should always consider
the process of asking your customers important information and questions that
you can use to improve your product/ service.
LEARNING TASKS
A. Directions: Using the space below, arrange the correct sequence of
the Concept in Developing a Product.
Analyze competitive products
Select a product concept
Refine product specifications during this stage
Generate product concepts
Identify customers needs
Perform economic analysis
Plan the remaining development project
Establish target specifications
B. Directions: Read, analyze and understand each question carefully
for each item Write the letter of your answer in a sheet of paper.
1. This is critical phase in the development of a product because
the needs of the target market are identified; competitive product
reviewed before the product specifications are defined.
A. Concept Development C. Business
Pricing
B. Product Development D. Business
Idea
2. A process of making a new product to be sold by a business or
enterprise to the customers?
B. Directions: Read, analyze and understand each question carefully
for each item Write the letter of your answer in a sheet of paper.
3. These luxuries, advantages and desires that every individual
considers beyond necessary.
A. Wants C. Desires
B. Requirements D. Needs
4. This is the factor or consideration presented by a seller that
explains why one product or service is different from or better
than that of the competitors.
A. Unique Selling Plan C. Unique Selling
Proposition
B. Directions: Read, analyze and understand each question carefully
for each item Write the letter of your answer in a sheet of paper.
5. The stage in product development in which it is very important
to review and estimate the economic implications regarding
development expenses, manufacturing costs, and selling price of
the products to be offered/provided. A. A.
Concept Development C. Perform economic
analysis
B. Project Development D. Refine Product
Specification
6. This is the introduction of a new idea to make the product and
B. Directions: Read, analyze and understand each question carefully
for each item Write the letter of your answer in a sheet of paper.
7. What are the four basic needs and wants of people in the
society?
A. Basic commodities; clothing; shelter; and education
B. Food; clothing; house; and go to abroad
C. Basic commodities; clothing; food and go to abroad
D. Food; clothing; go to abroad; and education
8. This is created by fulfilling deep desires and solving deep
problems.
B. Directions: Read, analyze and understand each question carefully
for each item Write the letter of your answer in a sheet of paper.
9. It is a believable collection of the most persuasive reasons why
people should notice you and take the action you're asking for.
A.
A. Use empathy C. Value Proposition
B. Identify customers need D. Perform economic analysis
10. What is the first stage in the process of product
development? .
A. Identify customer needs C. Analyze competitive
C. Directions: Read and analyze the following statements and
complete the puzzle below.
1. It is the introduction of
something new in your product /
services.
2. These are desires, luxuries, and
extravagance that signify a
wealthy and expensive way of
living.
3. It is one of the four basic needs
of people in the society.
4. This is the reason why people
C. Directions: Read and analyze the following statements and
complete the puzzle below.
5. After having gone through with the
previous processes, you may now
develop a number of product concepts to
illustrate what types of products/services
are both technically feasible fitting to the
requirements of the target specifications.
6. It refers to the process of making a
new product to be sold by a business or
enterprise to its customers.
7. The needs of the market are identified
and reviewed before the product
specifications are defined.
D. Directions: Make your own Business Name, Tagline, and Business
Logo that related to your field of specialization. (20 points)
RUBRICS:
THANK YOU
For Listening
Hopefully, you learned so much
today!
