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    What Is The Potential Market

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    thuongchinhha duonggiau
    The potential market for a business is determined based on 3 main factors: 1. The market must be measurable in terms of clearly capturing customer numbers, shopping behaviors, and purchasing power to determine profitability of segments. 2. The market needs to be large enough to exploit and sustain operations based on sales potential. 3. The market must allow businesses to effectively reach customers through communication channels like TV, newspapers, websites and social media to implement marketing strategies.

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    What Is The Potential Market

    Uploaded by

    thuongchinhha duonggiau
    41 views2 pages
    The potential market for a business is determined based on 3 main factors: 1. The market must be measurable in terms of clearly capturing customer numbers, shopping behaviors, and purchasing power to determine profitability of segments. 2. The market needs to be large enough to exploit and sustain operations based on sales potential. 3. The market must allow businesses to effectively reach customers through communication channels like TV, newspapers, websites and social media to implement marketing strategies.

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    The potential market for a business is determined based on 3 main factors: 1. The market must be measurable in terms of clearly capturing customer numbers, shopping behaviors, and purchasing power to determine profitability of segments. 2. The market needs to be large enough to exploit and sustain operations based on sales potential. 3. The market must allow businesses to effectively reach customers through communication channels like TV, newspapers, websites and social media to implement marketing strategies.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    41 views2 pages

    What Is The Potential Market

    Uploaded by

    thuongchinhha duonggiau
    The potential market for a business is determined based on 3 main factors: 1. The market must be measurable in terms of clearly capturing customer numbers, shopping behaviors, and purchasing power to determine profitability of segments. 2. The market needs to be large enough to exploit and sustain operations based on sales potential. 3. The market must allow businesses to effectively reach customers through communication channels like TV, newspapers, websites and social media to implement marketing strategies.

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    What is the potential market?

    Potential market is understood as an area where a group of consumers have an interest in a product or
    service in the market and have the ability and income to pay to own the product or service. that case.
    The higher the product value, the fewer people will buy that product, the size of a market is calculated
    by the ability to interest and pay income of customers. Criteria for determining the potential market

    To determine the potential market for businesses, we base on 3 main factors as follows.

    Able to measure

    A market that is considered potential for businesses must first determine the size and scope of this
    market. After understanding the market size, the business will know the unique characteristics of
    market segments.

    You can refer to the article here to learn the concept of "What is market size?": What is market size?
    How to determine effective market size

    When segmenting a potential market, businesses need to pay attention to whether that market is
    capable of segmenting and bringing profits to them. Simply put, it is necessary to track and clearly
    capture the number of customers building up the segment, their shopping behavior and purchasing
    power, and then measure the profitability of each segment.

    Large scale

    Besides the ability to measure, a potential market must be large enough for the business to exploit and
    maintain operations based on sales from potential market segments. The larger the market, the higher
    the growth rate and vice versa.

    Able to implement Marketing

    Implementing marketing strategies for products is extremely important. A potential market must be a
    place where businesses can reach their customers quickly and effectively through communication
    channels such as newspapers, television, television to online communication tools such as social
    networks. , website... A product or service cannot satisfy all the needs of customers in each different
    market segment. Therefore, the assessment of potential markets helps businesses easily grasp which
    markets are most suitable for the company's products and services, thereby building more effective
    marketing and sales strategies.

    Process of selecting potential markets


    In fact, a business has more than just a potential market segment when it comes to market research.
    Therefore, leaders need to choose the market that brings the most profit for the business.

    To easily select potential markets, people can follow the steps below:

    Step 1: Provide factors to measure the value and attractiveness of potential market segments.

    Step 2: Assess the strength and capabilities of the business in the market at the present time and predict
    the future with each market segment.

    Step 3: Identify the key elements of the indicators to measure the potential level of the market.

    Step 4: Assess the current position of the business.

    Step 5: Choose the right potential market

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