ENTREPRENEUR - The demographic information that people in a
group have in common.
Recognuze a Potential Markket
1. Potential Market
- is the part of the total population that has
shown some level of interest in buying a
particular product or shown level of interest in
buying a particular product or services.
- Potential Market is also called Total
addressable market (TAM) (MBA Skool Team,
2018)
2. A Potential Market
- is the part of the market you can capture in
the future. It includes the demographic groups
that are not currently your costumers but could
become customers in the future (Lake, L., 2019)
3. Market Potential
- is the total demand for a product in a given
business environment (Bhasin, H., 2018)
The importance of Potential Markets (Lake, L.,
2019)
> Potential markets are a important part of a
business’s future growth.
> Ensure the future of your business by
identifying new customers.
> Think proactively about ways for your
business to grow and change
> Show the potential of your business to
investors or collaborators.
> Increase your revenue.
> Create a plan B that will weather changes
- Consider every target demographic that you
currently sell to, as well as those you have not
yet targeted.
- Identify what they will encounter in their lives
that will impact their buying patterns, and
where they overlap or diverge from your
current customers.
Reaching your potential market (lake, l., 2019)
> Once you’ve identified and chosen a potential
market to begin targeting, you will need new
marketing strategies in place to communicate
with them.
- The best forms of match to reach them.
- How they prefer to shop and make purchases.
- the concerns, struggles, or problems that you
can help them overcome.
- What values matter to them, both in everyday
life and when shopping.
- The language that resonates with them.
Potential market with respect to the total
population and how it can be converted to
penentrate market:
Available Market
> Prospect who are willing and capable (have
sufficient resources) buyers, and have access to
a particular market or service
(www.businessdictionary.com)
> Defined as a number of people who are both
willing and capable of buying a particular
product or service in a particular market (MBA
skool Team, 2020).
Target Market
> Refers to a group of potential customers to
whom a company wants to sell its products and
services. Target markets are generally
categorized by age, location, income, and
lifestyle.
> Defining a specific target market allows a
company to home in on specific market factors
to reach an connect with costumers through
sales and marketing efforts. (Kenton, W., 2019).
Penetrated Market
> A set of costumers or clients who are already
using a particular product or service.
> A penetrated market means that the
potential users of a product or service are
aware of it, and in many cases are active
consumers of it.
(www.businessdictionary.com).
Size of a Potential Market
> Helps a company understand the level of
investment it should make further in the
market, while taking into consideration other
factors.
> If the potential market is very small, it means
there is a very small fraction of the total
population showing any in the product or
category.
> This means that it is better that the company
doesn’t invest further in the product or
category because people won’t buy it.
> If the size of the potential market is large, it
means that there is huge fraction of the total
population which is showing interest in the
product, so further investment can be made on
the product development or modification,
marketing, promotions etc.
> The size of the potential market gives an
estimate of what all a company should do and
how much it should invest (MBA Skool Team,
2018).
The Market Need
1. NEED
> A motivation force that compels action for its
satisfaction, Needs range from basic survival
needs (common to all human beings) satisfied
by necessities, to cultural, intellect, and social
needs (varying from place to place and age
group to age group) satisfied by necessaries
(www.businessdictionary.com)
> A driver human action which marketers try to
identify, emphasize, and satisfy, and around
which promotional efforts are organized.
2. Market
> A market is a place where two parties can
gather to facilitate the exchange of goods and
services. The parties involved are usually
buyers and sellers. The market may be physical
like retail outlet, where people meet face to
face, or virtual like an online market, where
there is no direct physical contact between
buyers and sellers (Kenton, W. & Boyle, M.
2020).
> A market does not refer to a particular place
but it refers to a market for a community or
commodities. It refer to an arrangement
whereby buyers and sellers come in close
contact with each other directly or indirectly to
sell and buy goods (Shaikh, S., retrieved 2020)
> A market in any place where sellers of
particular goods or services can meet with
buyers of those goods and services. It creates
the potential for a transaction to take place.
The buyers must have something they can offer
in exchange for the product to create a
successful transaction (Moffat, M., 2019).
Your Market Consist of (Stull. C. Myers,
P.&Scott D.M. (2008))
 Existing Customers:
- People who have already purchased
your product.
 Prospects:
- People who have not yet purchased
your product but are considering it.
 Target Market Users:
- People in your target market who are
not currently looking for a solution.
Define the Market Need for your New
Business
Why is it important to clarify define market
need?
> The market now demans that your business
align to their needs. In order to properly align
marketing efforts - and your content, in
particular - to what buyers need, you have to
have a clear understanding of the many
intricacies, pains and pressure within your
market. To achieve such alignment, the ability
to define market patterns, needs, interest,
preferences, etc., for a comprehensive review
of the buying process is critical
(www.aberdeen,.com).

Ways to define your market (Lancaster SCORE

2010)
> Consider whether the business offers a new
solution to an old problem or complements an
emerging trend.
> Have a clear picture of your target market
> Determine the bendefits that your product or
service offers.
> Examine industry data that can confirm
wether there is a sustained, growing demand
for your product or service.
> Identify the percentage of market share that
is realistic for you to capture, the more
competition you have, the lower the margins
will be.
> Consider how realistic your pricing is. How
can you present your product or service to
potential customers so that it appears to be a
good value, while still affording you a healthy
profit.