Recognize a potential

market and analyze the

market need
The Potential Market
1. Potential market is the part of the total population that has shown some
level of interest in buying a particular product or service. 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
customers 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 an 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 in the economy or market.
How to Identify Your Potential Markets
(Lake, L., 2019)
 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.
For example, a business that makes face masks and PPEs could
identify potential markets such as:
 Hospitals
and other health related industries whose
employees are prone to COVID -19 virus and other viruses.
 Business industries and other organizations who want to
ensure the health condition of their employees.
 Employees and workers who need to report to work to earn
income.
 Households who needs to go out for their necessities.
Reaching Your Potential Market (Lake,
L., 2019)
 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.
 Theconcerns, struggles, or problems that you can help them
overcome.
 Whatvalues matter to them, both in everyday life and when
shopping.
 The language that resonates with them.
Available Market
 Prospects who are willing and capable (have sufficient resources) buyers, and have access to
a particular market or service (www.businessdictionary.com).
 Defined as the 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 and connect with customers through sales and marketing efforts. (Kenton, W., 2019).
Penetrated Market
 A set of customers 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).
The Market Need
1. Need
A motivating force that compels action for its satisfaction. Needs range from basic
survival needs (common to all human beings) satisfied by necessities, to cultural,
intellectual, and social needs (varying from place to place and age group to age
group) satisfied by necessaries (www.businessdictionary.com).
A driver of human action which marketers try to identify, emphasize, and satisfy,
and around which promotional efforts are organized (www.businessdictionary.com).
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 a 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).
ACTIVITY
Activity 1. Read and analyze the statements below about “Market”. Determine whether the
statement is TRUE OR FALSE. Write TRUE if the statement is correct and write FALSE if otherwise.
Write your answer in the space provided.
__________1. A market is any place where two or more parties can meet to engage
in an economic transaction—and should only involve legal tender.
___________2. Market includes retail stores and other similar businesses that sell
individual items to wholesale markets selling goods to other distributors but may
not be virtual.
___________3. Market refers to the whole area of operation of demand and supply.
___________4. A market signifies any arrangement in which the sale and purchase of
goods take place.
___________5. The market establishes the prices for goods and other services.
Activity 2. Read and analyze the given situations below. Identify whether this refers to existing customer,
prospects, or target market users. Write your answer in the your activity notebook.

1. Students need to buy a tablet/ laptop for school requirements.

2. Arlene, a student of a public school, needs mobile data in order to comply with the requirements in
school.
3. Ana used to buy shampoo.
4. Hospitals need facemasks and PPEs.
5. Households living in a remote area.
6. Mike, a sari-sari store owner, wants to go online selling.
7. Martha, a call center agent, needs a Wi-Fi.
8. Jeep drivers need to modify their jeeps for public transportation.
9. Karlo, a factory worker, needs transportation.
10. Ella needs to buy her vitamin C to boost her immune system.
 Activity 3. MAKE MEANING- INTERNET ASSSISTED ACTIVITY
DIRECTIONS: Give the meaning of the following word/phrase
in each item. You may use the internet to define the given
word/phrase. Write your answer in the space provided.

1. Customer vs. consumer ___________________________

2. Demographic group______________________________
3. Market share ___________________________________
4. Market size _____________________________________
5. Marketing strategies______________________________