THE

POTENTIA
MARKE
L
T
Learning
a. Define potential market
Objectives:
b. Share the importance of potential market in
the economy.
c. Write a reflective essay about your dreamed
business through identifying your potential
market.
 Let’s talk about it!

Share a personal experience related to

the quote:

“Failing to prepare
prepares you for failure”
Deepen the thoughts!
THE POTENTIAL MARKET
- Is the part of the total population that has shown some level of
interest in buying a particular product or service.
- It is also called TOTAL ADDRESSABLE MARKET (TAM) (MBA Skool
Team, 2018)
- It includes the demographic groups that are not currently your
customers but could become customers in the future (Lake, L. 2019)
MARKET POTENTIAL
Is the total demand for a product
in a given business environment.
(Bhasin, H., 2018).
The Importance of Potential Markets
• An important part of a business’s future growth.
• Ensure the future of your business by identifying
new customers.
• Think proactively 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 whether changes in the
economy or market.
How to Identify Your Potential Markets
• Consider every target demographic that
you currently sell to, as well as those
you have not yet targeted. Identify what
they have in common with each other,
new milestones that they will encounter
in their lives that will impact their
buying patterns, and where they overlap
or diverge from your current customers.
• Ask yourself these questions that will
help you identify both new ways to
market your current products or
services, as well as new products and
services that you can begin selling.
· What other products do my customers need now?
· What related products will they need in the future?
· Who else could make use of the products I am
selling now?
· What demographic information does that new group
have in common with my current customers?
· What demographic information does that new group
have in common with each other?
Reaching Your Potential Market (Lake, L., 2019)

Use this profile to identify:

 The demographic information that people in a group have

in common.
 The best forms of media 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.
 AVAILABLE MARKET
• Prospects who are willing and capable
buyers, and have access to a particular
market or service.
• Defined as the number of people who are
both willing and capable of buying particular
product or service in a particular market.
 TARGET MARKET
• Refers to a group of potential customers to
whom a company wants to sell its products
and services.
• Generally categorized by age, location,
income, and lifestyle.
 PENETRATED MARKET

• A set of customers or clients who are already

using a particular product or service.
• Means that the potential users of a product
or service are aware of it, and in many cases
are active consumers of it.
 The Market Need

NEED
- a motivating force that compels action for its satisfaction.
It range from basic survival needs (common to all human
beings) satisfied by necessities, to cultural, intellectual,
and social needs satisfied by necessaries.
- A driver of human action which marketers try to identify,
emphasize, and satisfy, and around which promotional efforts
are organized
 The Market Need

Market
• -Is a place where two parties (buyer and
seller) can gather to facilitate the exchange
of goods and services.
• It maybe physical like a retail outlet (face to
face), or virtual like an online market.
 Market consists of :

EXISTING CUSTOMERS:
• People who have already purchased your product.

PROSPECTS:
• People who have not yet purchased your product but
are considering it.
 Market consists of :

TARGET MARKET USERS:

• People in your target market who are not currently

looking for a solution.
THANK YOU