ENVIRONMENT AND MARKET

CARPENTRY 10
Module

2 ENVIRONMENT AND MARKET (EM)

https://due.com/blog/introduce-new-products-and-services-as-a-business-owner/

CONTENT STANDARD

 The learner demonstrates an understanding of the concepts environment and

market in the field of carpentry, particularly in one’s town/municipality.
PERFORMANCE STANDARD

 The learner independently creates a business vicinity map reflective of the
potential carpentry market within the locality/town.

LEARNING COMPETENCIES

LO 1. Develop a product/ service in Carpentry

1.1 Identify what is of “Value” to the customer
1.2 Identify the customer
1.3 Explain what makes a product unique and competitive
1.4 Apply creative and innovative techniques to develop marketable product
1.5 Employ a Unique Selling Proposition (USP) to the product/service

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Lesson

PRODUCT DEVELOPMENT
1

After going through this lesson, you are expected to:

 identify what is of “Value” to the customer;
 identify the prospective customer;
 explain what makes a product unique and competitive;
 apply creativity and innovative techniques to develop a marketable product; and
 employ a Unique Selling Proposition (USP) about the product/service

What Do You Already Know?

Let us determine how much you already know about this lesson. Take this test.

Direction: Read and study the following questions then answer the question by writing the
letter of your choice in your assignment notebook or in the provided answer sheet.
Direction: Choose the letter of the best answer. Write your
answers on a separate sheet of paper.
1. This is generated by examining what goods and services aresold outside by the
community.
A. business creation C. business concept
B. business pricing D. business idea
2. A process of making a new product to be sold to the customers.
A. Product analysis C. product development
B. Product conceptualization D. product implementation
3. These are luxuries, advantages, and desires that every individual considers beyond
necessary.
A. wants C. requirements
B. desires D. needs
4. This is the factor or consideration presented by a seller as the reason that one product or
service is different from and better than that of the competition.
A. unique selling plan C. unique pricing policy
B. unique selling proposition D. finding value-added
5. In this stage, the needs of the target market are identified, review and evaluated.
A. concept development C. project development
B. economic analysis D. refine specification
6. This is the introduction of new idea to make the product and services more attractive and
saleable to the target customers.
A. new Idea C. product development
B. creativity D. innovation

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7. A managerial tool used to assess the environment to gather important information used
for strategic planning.
A. Environmental scanning C. WOTS analysis
B. SWOT analysis D. Survey analysis
8. These are the things that people cannot live without.
A. wants C. requirements
B. desires D. needs
9. Which of the following is based on customers’ needs and reviews of competitive products,
you may now establish target specifications of the prospective new product and services?
A.Analyze competitive products C. Establish target specifications
B. Generate product concepts D. Select a product concept
10. Which of these stage where the product and service specifications are refined on the
basis of input from the following results of extensive study, expected service life, and
projected selling price?
A. Generate product concepts C. Perform economic analysis
B. Refine product specifications D. Select a product concept

What Do You Need to Know?

After setting your own personal goals and targets to achieve the objectives of this module,
you will have the opportunity to read and learn more about environment and market. You
too, will be given a chance to do practical exercises and activities to deepen your
understanding of the topic.

Product Development
Product development refers to a process of making a new product to be sold by a
business or enterprise to its customers. It may involve modification of an existing product,
its presentation, or formulation of an entirely new product that satisfies a newly defined
customer’s needs or wants and a market place.

The term development in this module refers collectively to the entire process of identif
ying a market opportunity, creating a product that appeals to the identified market, and
finally, testing, modifying, and refining the product until this will be ready for production.
This product can be any item to be sold to the consumers.

Product development typically refers to all of the stages involved in bringing a

product from concept or idea, through market release and beyond

Product development, also known as new product development or management, is a

sequential order of steps which involves the idea generation, screening, designing,
developing and marketing of newly produced or newly rebranded products or services. The
motive behind product development is to grow, sustain and enhance market share of a
company by meeting demands of consumers. Defining the target market for a product or
service must occur earlier in the process of product development because every product is
not meant for every client or customer segment. The necessity of conducting a quantitative
market research at each and every step of the product development process is undeniable.

There are basic, yet vital questions that you can ask yourself about before developing
a product , such as the following:
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1. For whom are the product and services?

2. What benefit will the customers expect from it?
3. How will the product differ from the existing brand or from their
competitor?
When you find acceptable answers to these, you may now say that you are ready to
develop a product and render the expected service.

Similarly, needs and wants of the people within the area should also be taken into
primary consideration. Everyone has his or her own needs and wants. However, people have
different concepts of needs and wants. Needs in business are important things that every
individual cannot do without in a society.

What is diffirence between needs and wants?

Needs, by the term needs, we mean those requirements which are extremely
necessary for a human being to live a healthy life. They are personal, psychological,
cultural, social, etc that are important for an organism to survive.

In ancient times the three basic needs of the man are food, clothing and shelter but
with the passage of time, education and healthcare also became integral, as they improve
the quality of life. They are a person’s first priority as they are the things, that they keep us
healthy and safe. Therefore, if needs are not satisfied in time, it may result in illness,
inability in functioning properly or even death.

Wants, In economics, wants are defined as something that a person would like to
possess, either immediately or at a later time. Simply put, wants are the desires that cause
business activities to produce such products and services that are demanded by the
economy. They are optional, i.e. an individual is going to survive, even if not satisfied.
Further, wants may vary from person to person and time to time.

We all know that human wants are unlimited while the means to satisfy those wants
are limited. Hence, all the wants of an individual cannot be met and they must seek for
alternatives.

Needs and wants of people are the basic indicators of the kind of business that you
may engage into because it can serve as the measure of your success. Some other good
points that you might consider in business undertakings are the kind of people, their
needs, wants, lifestyle, culture and tradition, and social orientation that they have, in
summary, product development entirely depends on the needs and wants of the customers.
Another important issue to deal with is the key concepts of developing a product. The
succeeding topic shall enlighten you about the procedure in coming up with a product.

Product Concepts Development

Concept development is a very critical phase in the development of a product. From

this stage, the needs of the target market are identified and 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. Below is a figure that shows the stages of concept development of a product.

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Identify Establish Generate

Generate Select a Refine
customer product
product product specificati
target
needs concepts concept ons
specifications concepts

Plan
Analyze Perform
remaining
Competitive economic
development
Product analysis
project

Product Development
Figure 1: Concept Development

The process of product development follows the following steps:

A. Identify customer needs - An entrepreneur can easily identify customers’ needs and
wants by using a survey form, conducting interviews,... In this stage, the information that
can be possibly gathered here are product specifications (performance, taste, size, color,
shape, life span of the product, etc.). This stage is very important because this would
determine the quality of the product to be produced or provided.

B. Establish target specifications - Based on customers’ needs and reviews of competitive

products, you may now establish target specifications of the prospective new product and
services. Target specifications are essentially a wish list.

C. Analyze competitive products - It is imperative to analyze existing competitive products

to provide important information in establishing product and services specifications. Other
products may exhibit successful design attributes that should be emulated or improved
upon in the new product or service

D. Generate product concepts - After having gone through the previous processes, you
may now develop a number of product concepts to illustrate what types of product and
service are both technically feasible and would best meet the requirements of the target
specifications.

E. Select a product concept - Through the process of evaluation between attributes, a

final concept is selected. After the final selection, additional market research can be applied
to obtain feedback from certain key customers.

F. Refine product specifications - In this stage, product and service specifications are
refined on the basis of input from the following results of extensive study, expected service
life, and projected selling price.

G. Perform economic analysis - Throughout the process of product development, it is very

important to always review and estimate the economic implications arising from the
development expenses, manufacturing costs, and selling price of the product and services
to be offered.

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H. Plan the remaining development project - In this final stage of concept development,
you may prepare a detailed development plan which includes a list of activities, the
necessary resources and expenses, and a development schedule with milestones for
tracking progress

Finding Value

People buy for a reason. There should be something in your product or services that
would give consumers a good reason to go back and buy more. There must be something that
makes you the best option for your target customers; otherwise they have no reason to buy
what you are selling. This implies further that you offer something to your customers that
will make them value or treasure your product and services.
The value that you incorporate to your product is called value proposition. Value
proposition is “a believable collection of the most persuasive reasons people should notice
you and take the action you are asking for.” Value is created by fulfilling deep desires and
solving deep problems. This is what gets the people moving, and what gets them spending
for your product and service.

Innovation

Innovation is the introduction of something new in your product or services. This may be a
new idea, a new method or a device. If you want to increase your sales and profit you must
innovate. Some of the possible innovations in your products are change of packaging,
improved taste, color, size, shape and perhaps price. Some of the possible innovations in
providing services are the application of new improved methods, additional featured
services, and possibly freebees.

Unique Selling Proposition (USP)

Unique selling proposition is the factor or consideration presented by a seller as the reason
that one product or service is different from and better than that of the competators. Before
you can begin to sell your product or service to your target customers, you have to sell yourself
for 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, involving not just their product or service
characteristics, you can learn a great deal about how companies distinguish themselves from
competitors.

Here’s how to discover your USP and use it to increase your sales and profit:
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 product or services. Always
remember, you are making this product or providing for the target customers to eventually
increase sales and earn profit, and not just making this product or services for yourself. An
essential question is what could make them come back again and again and ignore
competition. Most possible answers will be focused on the quality, availability, convenience,
cleanliness, reliability, and friendliness ot the product or service.

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Identify what motivates your customers. It is very important for you to understand and
to find out what drives and motivates your customers to buy your product or service. Make
some efforts to find out, analyze, and utilize the information that motivates the customers
in their decision to purchase the product or services.

Discover the actual and genuine reasons why customers buy your product instead of
a competitor’s. Information is very important in decision making. A competitive
entrepreneur always improve his or her products and 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 question that you can use to
improve your product and services.

How Much Have You Learned?

ACTIVITY 1: TRUE OR FALSE: Write True if the statemet is correct while write False if the
statement is incorrect.

___________1. The reason behind product development is to grow, sustain and enhance
market share of a company by meeting demands of consumers.

___________2. A competitive entrepreneur always preserve his or her products and services
to provide satisfaction.

___________3. Needs and wants of people are the basic indicators of the kind of business
that you may engage into because it can serve as the measure of your success.
___________4. An individual is not going to survive, even if not satisfied.

___________5. An entrepreneur can easily identify customers’ needs and wants by using a
survey form, conducting interviews
___________6. It is vital to analyze existing competitive products to provide important
information in establishing product and services specifications.
___________7. Value is created by fulfilling deep desires and solving deep problems.
___________8. Wants are those requirements which are extremely necessary for a human
being to live a healthy life.

___________9. It is not necessary to innovate product.

___________10. It is not essential for you to understand and to find out what drives and
motivates your customers to buy your product or service.

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Activity 2: Product Conceptualization: Direction: Using the product development figures

develop your own concept of your product and services.

1. Customers need

2. Target specifications

3. Analyze a competitive product

4. Generate product concept

5. Select A product concept

6. Refine product specification

7. Prepare a Development Plan

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Lesson

2 GENERATING IDEAS FOR BUSINESS

After going through this lesson, you are expected to:

 identify factors in generating ideas for business;

What Do You Already Know?

Let us determine how much you already know about generating ideas for business.
Take this test
Crossword Puzzle Direction: Use the clue to complete the crossword puzzel below.

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What Do You Need to Know?

Read lesson 2 very well then find out how much you can remember and how much you
learned by doing the activities below.

Generating Ideas for Business

The process of developing or generating a business idea is not a simple process.

Some people just come to a bunch of business ideas, but some really are without ideas.
There are two problems that arise; first is the excessive generation of ideas that can
forever: remain in the dreaming stage, and second is when they don’t have ideas and
still want to become an entrepreneur.
The most optimal way is to have a systematic approach in generating and selecting
business idea that will be transformed into real business.

What makes a good idea?Good business ideas?

 Solve a problem
 Offer a better, cheaper way
 Simple & practicable
 Can be delivered quickly
 Have a clear focus
 Anticipate trends & exploit beer growing markets

Example: The lumbermen would waste half their energy moving their saw back and
forth, only cutting on the forward stroke. Babbitt noticed the inefficiency of this
method and set out to make a saw that would waste less time and effort. She created a
notched tin disk and rigged it to spin with the pedal push of her spinning wheel. With
this simple invention, wood could be cut with a fraction of the time and effort it took
using the old pit saw.

Her basic idea was used to create a much larger device for use in the sawmill, and the
circle saw quickly caught on as the wood processing tool of choice. While Babbitt’s
design was similar to Miller’s or Taylor’s, hers appeared to be much larger and more
useful on a larger scale — modifications which differentiated her design from the rest.
Popular sources of business ideas

1. Business experience
 Good way of getting insights into what works + more realistic business plan
 Less need for market research
2. Personal experience
 Day-to-day activities, interests & hobbies
 Bad experiences or frustrations

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3. Observations
 Watching closely what happens to customers (including in other markets)
 Look for poor customer service

The perfect state of mind for idea creation

Steve Johnson, the author of “Where Good Ideas Come From,” has spent years
researching and writing about this subject. He believes that you are more likely to
develop great ideas when:

 You explore and experiment in different areas

 You allow your idea to develop slowly, over time
 You are exploring and open to the idea of serendipitous connections
 You make mistakes
 You look for new uses for old inventions
 You build on platforms that have come before
Here are some basic yet very important considerations you may use to generate
possible ideas for business:

Examine the existing goods and services. Are you satisfied with the product? What
do other people who use the product say about it? How can it be improved? Are there
many ways of improving a product from the way it is made to the way it is packed and
sold? You can also improve the materials used in crafting the product. In addition, you
introduce new ways of using the product, making it more useful and adaptable to the
customers’ many needs. When you are improving the product or enhancing it, you are
doing an innovation. You can also do an invention by introducing an entirely new
product to replace the old one.
Business ideas may also be generated by examining what goods and services are sold
outside by the community. Very often, these products are sold in a form that can still
be enhanced or improved.

Examine the present and future needs. Look and listen to what the customers,
institution, and communities are missing in terms of goods and services. Sometimes,
these needs are already obvious and felt at the moment. Other needs are not that
obvious because they can only be felt in the future, in the event of certain
developments in the community. For example, a province will have its electrification
facility in the next six months. Only by that time will the entrepreneur could think of
electrically-powered or generated business such as photo copier, computer service,
digital printing, etc.

Examine how the needs are being satisfied. Needs for the products and services are
referred to as market demand. To satisfy these needs is to supply the products and
services that meet the demands of the market. The term market refers to whoever will
use or buy the products or service, and these may be people or institutions such as
other businesses, establishments, organizations, or government agencies.

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There is a very good business opportunity when there is absolutely no supply to a

pressing market demand. Businesses or industries in the locality also have needs for
goods and services. Their needs for raw materials, maintenance, and other services
such as selling and distribution are good sources of ideas for business.

Examine the available resources around you. Observe what materials or skills are
available in abundance in your area. A business can be started out of available raw
materials by selling them in raw form and by processing and manufacturing them into
finished products. For example, scaffolding needs coco lumber or goo lumber. This
may be replaced by bamboo. Nails may be replaced by rattan strings.
A group of people in your neighborhood may have some special skills that can be
harnessed for business. For example, women in the Mountain Province possess loom
weaving skills that have been passed on from one generation to the next generation.
Some communities there set up weaving businesses to produce blankets, as well as
decorative items and various souvenir items for sale to tourists and lowland
communities.

Business ideas can come from your own skills. The work and experience you may have
in agricultural arts, industrial arts, home economics, and ICT classes will provide you
with business opportunities to acquire the needed skills which will earn for you extra
income, should you decide to engage in income-generating activities. With your skills,
you may also tinker around with various things in your spare time. Many products were
invented this way.

Read magazines, news articles, and other publications on new products and
techniques or advances in technology. You can pick up new business ideas from
Newsweek, Reader’s Digest, Business Magazines, “Go Negosyo”, KAB materials, Small-
Industry Journal. The Internet serves as a library where you may browse and surf on
possible businesses. It will also guide you on how to put the right product in the right
place, at the right price, at the right time. Listing of possible businesses to set up in
an area may also be available from banks or local non-government organizations.

Key concepts of selecting a business idea

Once you have embarked on identifying the business opportunities, you will
eventually see that there are many possibilities that are available for you. It is very
unlikely that you will have enough resources to pursue all of them at once. Which one
will you choose?

You have to select the most promising one from among hundreds and one ideas.
It will be good to do this in stages. In the first stage, you screen your ideas to narrow
them down to about five choices. In the next stage, trim down the five choices to two
options. In the final stage, choose between the two and decide which business idea is
worth pursuing.

In screening your ideas, examine each one in terms of the following factors:

1. How much capital is needed to put up the business?

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2. How big is the demand for the product? Do many people need this product and will
continue to need it for a long time?
3. How is the demand met? Who are processing the products to meet the need
(competition or demand)? How much of the need is now being met (supply)?
4. Do you have the background and experience needed to run this particular
business?
5. Will the business be legal, not going against any existing or foreseeable government
regulation?
6. Is the business in line with your interest and expertise?

Your answers to these questions will be helpful in screening which ones from among
your many ideas are worth examining further and worth pursuing.

Remember that:

 There are very few original business ideas. Well-worn ideas work too, with a
fresh approach
 Good ideas rarely come in a flash - they take time to develop
 The idea doesn’t have to be yours – you can copy someone else so long as it is
legal
 Good ideas rarely come from committees!

How Much Have You Learned?

Activity 1: Direction: Identify which consideration in generating ideas for business is

the following statement. Choose your answer on the choices below. Write the letter of
your answer on the space provided before each number.

A. Examine the existing goods and services

B. Examine the present and future needs
C. Examine how the needs are being satisfied
D. Examine the available resources around you.
E. Read magazines, news articles, and other publications on new products and
techniques or advances in technology.

________1. Disney found that some of its patrons really disliked waiting in lines. In
response, Disney began offering FastPass at a premium price, which allows patrons to
avoid standing in long lines waiting for attractions.

________2. Cristina, a registered pharmacist wants to start a drug store once the
hospital in their place is operating.

________3. The newly constructed fishport in Masantol is now operating, hence Mr.
Agoncillo plans to open a carinderia near the fishport.

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________4. The island of Capiz and Samal in the Phillipines, are abundant in the capiz
shells, where in 500 tons of capiz shells are harvested every other year transformed
into various decorative products such as windows, lamp shade, chandelier and et.

________5. Since there are abundance of bamboo in Pampanga, it became the main
material for making domestic furniture. Bamboo furniture became popular and took
over the market in terms of both domestic and commercial products

________6. Mat weavers or”magdadase from San Luis and San Simon that were known
for weaving house mats or “dase” which was made from “ebus” (buri palm leaves)
which is very abundant in the province particularly in Candaba swamp.

________7. By reading a event magazine, you will be accomplished to profit a detailed

analysis of trends and cycles various businesses follow.
________8. The lumbermen would waste half their energy moving their saw back and
forth, only cutting on the forward stroke. Babbitt noticed the inefficiency of this
method and set out to make a saw that would waste less time and effort. She created a
notched tin disk and rigged it to spin with the pedal push of her spinning wheel. With
this simple invention, wood could be cut with a fraction of the time and effort it took
using the old pit saw.
________9. In a copra producing town, there will be many coconut husks and
shellsavailable as“waste” products.These can be collected and made into coco rags
ordoormats and charcoal bricks and sold profitably outside the community
________10. Enterprise Rent-A-Car found that its customers didn’t want to have to
drive to its offices. Therefore, Enterprise began delivering vehicles to customers’ homes
or places of work.
Activity 2: TRUE OR FALSE: Write True if the statemet is correct while write False if
the statement is incorrect.
__________1. Watching closely what happens to customers will help you to generate
business ideas.
__________2. Steve Jhonsons believs that you are more likely to develop great ideas
when you explore and experiment only in one areas.
__________3. Invention is done by introducing an entirely new product to replace the
old one.
__________4. Look and listen to what the customers, institution, and communities are
missing in terms of goods and services.

__________5. To satisfy the market needs is to hold the products and services that meet
the demands of the market.

__________6. A business cannot be started if there is no available raw materials in your

area

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__________7. By reading different magazines, catalogs or by surfing the internet you

can generate business ideas.
__________8. The process of developing or generating a business idea is a simple
process.
__________9. In generating business idea always consider the existing laws in your
area.
__________10. Good ideas always come in a flash - they are developed in a blink of an
eye.

Activity 3: Direction: Screen your ideas, examine each one in terms of the following
factors use the following question as a guide.

Name of your Business/Ideas:______________________________________________________

Description:________________________________________________________________________
1. How much capital is needed to put up the business?
_____________________________________________________________________________________
_____________________________________________________________________________________
2. How big is the demand for the product? Do many people need this product and will
continue to need it for a long time?
_____________________________________________________________________________________
_____________________________________________________________________________________
3. How is the demand met? Who are processing the products to meet the need
(competition or demand)? How much of the need is now being met (supply)?
_____________________________________________________________________________________
_____________________________________________________________________________________
4. Do you have the background and experience needed to run this particular
business?
_____________________________________________________________________________________
_____________________________________________________________________________________
5. Will the business be legal, not going against any existing or foreseeable government
regulation?
_____________________________________________________________________________________
_____________________________________________________________________________________
6. Is the business in line with your interest and expertise?
_____________________________________________________________________________________
_____________________________________________________________________________________

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Congratulations for completing this

module

Reference:

 Grade 10 module in Carpentry

 https://www.productplan.com/what-is-product-
development/#:~:text=Product%20development%20typically%20refers%20to,Co
nceptualizing%20and%20designing%20the%20product
 https://keydifferences.com/difference-between-needs-and-wants.html
 https://www.basic-concept.com/c/basic-concept-of-product-development
 https://articles.bplans.com/business-ideas/create-hundred-of-business-ideas/
 https://www.slideshare.net/tutor2u/generating-business-ideas-for-a-startup
 http://kaplistorian.blogspot.com/2018/12/103-10-arts-and-crafts-of-
pampanga.html
 https://www.flonix.co.uk/advantages-of-reading-a-business-
magazine/#:~:text=Such%20magazines%20are%20of%20cordial,behavior%20in
%20a%20guarded%20tone.
 https://opentextbc.ca/businessopenstax/chapter/the-marketing-concept/

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