ENVIRONMENT AND MARKET

CARPENTRY 10
Module
Module

2 ENVIRONMENT AND MARKET (EM)

CONTENT STANDARD
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The learner independently

demonstrates the core competency in
carpentry as prescribed by TESDA
Training Regulations.
 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
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:
1. For whom are the product and services?

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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
product
product product specificati
customer target
concepts concept ons
needs 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.

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
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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.

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.

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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.

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

develop your own concept of your product and services.

1. Customers need

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2. Target specifications
 3. ENVIRONMENT
Analyze a competitive product
AND MARKET

4. Generate product concept

5. Select A product concept

6. Refine product specification

7. Prepare a Development Plan

Lesson
Lesson

GENERATING IDEAS FOR BUSINESS

2
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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.

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

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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

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?

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?

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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.
________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
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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

__________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)?
______________________________________________________________________________________________
____________________________________________________________________________

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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?
______________________________________________________________________________________________
____________________________________________________________________________

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,Conceptualizing%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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