LESSON 1.

1 IDENTIFY THE MARKET

PROBLEM
Objective: Identify the problem to be solved or the market needs to be met.

Identify the Market Problem

In Building product, entreprenuers can meet customers needs. In identifying

Market problem, the following can be considered:

1. Existing customers are the people who have already purchased the
product you are selling.
2. Target market users are the people in your target market who are not
currently looking for a solution.
3. Prospects are the people who have not yet purchased your product but
have an intension to buy.
 Tips in Identifying Market Problem

1. Focusing only on innovation and the competition

2. Focusing only on customers

3. Focusing only on revenue

When Interviewing potential users, the goal of the
sellers is to understand the target market’s everyday
problems; whether or not you believe that you can
initially solve those problems. (Stull, C. Myers, P. &
Scott D.M. Tuned In; Uncover the Extraordinary
Opportunities that Lead to Business Breakthroughs.
2008.)
How to evaluate market problems?

1. Consider if the market problem is tangent, if yes, consider necessary

access by identifying alternative courses of action (ACA) then
enumerating their advantages and disadvantages.

2. Evaluate if the market problem is pervasive or easily diffused. If yes

think for a temporary solution.

3. Determine if the buyers will pay to have this problem solved.

 Problem-Identification Research

By conducting new market research projects. Learner can discover

problem or opportunity. You could discover any of the following factors through
problem-Identification research:

1. Brand Image -is the impression in the consumers mind or a brand’s total
personality, It developed over time through advertising campaigns with a consistent
ideas, this is authenticated through the consumers direct experience.
2. Market Characteristics -describes attributes of the buyers in making decision
related in purchasing a certain products.
3. Market Potential -is the estimated maximum total sales revenue of all
suppliers of a product in a market during a certain period.
4. Market Share -is a percentage of total sales volume in a market captured by a
brand, product or company.
Problem-Solving Research

1. Distribution Research: determining on how to transfer the product from the

manufacturer to ultimate user.
2. Market Segmentation: Grouping customers by similar characteristics or
similar purchase behaviours.
3. Pricing Research: determining the ideal price for the product. Setting the
price for the product is one of the most important marketing steps.
4. Product Research: testing the new or revised products or completing test
marketing.
5. Promotional Research: determining the best research in the area of
disseminating information.
Assessment No. 6

Name: Date:
Grade & Section: Score:

Explain the meaning of the following concepts.

1. Market Problem.

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2. Problem Identification Research.

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3. Market Segmentation.
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4. Pricing Research.
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5. Market Share.
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Enrichment Exercises
Name: Date:
Grade & Section: Score:

1. In your area, identify a market problem.

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2. Conduct Problem-Identification Research.

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3. Evaluate Market Problems.

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4. Conduct Problem-Solving Research:

a. Market Segmentation
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b. Promotional Research
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