Market potential is the entire size of the market for a product at a specific time. It represents the upper limits of the market for a product. Market potential is usually measured either by sales value or sales volume. For example, the market potential for ten speed bicycles may be worth $5,000,000 in sales each year. On the other hand, the market potential for motorcycles may be 500,000 units each year, which is a measure of sales volume rather than sales value. Keep in mind that market potential is just a snapshot in time. It's a fluid number that changes with the economic environment. For example, rising and falling interest rates will affect the demand for products that are typically financed, like cars and houses. Market potential, quite …show more content…
You'll need to examine at least three factors that will determine whether the market potential of your product is worth the investment. You need to analyze your potential customer base, analyze your competition and analyze the current environmental conditions that may affect market potential. Analyzing Potential Customer Base You need to determine the size and demographic characteristics of your potential consumers. Important information to obtain includes the population size of your target market, their product preferences and their median annual household income. This will tell you the number of potential customers and whether they can actually afford the product. You can assess your product's potential customer base by analyzing secondary data, or data that already exists, such as demographic data collected by the United States Census Bureau on household demographics in each state. You may also decide to collect primary data, which is data you collect specifically to analyze the market potential of a product. Typical means of collecting primary data include telephone surveys using a random sample of households drawn that you believe match your target
Figure out the typical customers is the first marketing strategy. Business should find the right customers who would by your product and tailor and focus its marketing effort toward them. Thus, this target market represents the group of customer offering greatest opportunity.
Marketing research has become a very important part of small businesses and large corporations gaining information about their customers and how they feel about their products and services. According to Philip Kotler, "Marketing research is systematic problem analysis, model building and fact-finding for the purpose of improved decision-king and control in the marketing of goods and services (Kotler & Keller, 2012)”. The initial step in the marketing process is to identify the problem the company is having and then decide the way the marketing team would like to conduct the research. The marketing team will devise a plan on how to gather the information and set a budget for the research project. In the planning of how they will conduct the
Target Corporation was founded in 1902 by George D. Dayton originally called “Dayton Dry Goods Company”. By 1962, Dayton opened its first discount store in Roseville, Minnesota by the name of Target (Target.com). Since 1946, Target has been giving 5% back to the communities, which today equals more than $4 million a week (corporate.target.com). Target has a reputation of being an upscale store that sell more stylish designed products at an affordable price. Target is often referred to as “Tar-zhay”. Target does not have a vision statement but their mission statement is, “to make Target your preferred shopping destination in all channels by delivering outstanding value, continuous innovation and exceptional experiences- consistently fulfilling
...onsumption, the market becomes free to enter. As long as the change is based on technological advancement that doubles its capacity every six month meaning grows up to infinite, and as long as not depending on finite natural resource, the technological market in the future will be a competitive market.
To begin with, Argos has multichannel retailer which are, retail stores, online stores and mobile app stores. It has different teams, a development team, an e commerce tea and an internet focused team. The technology development is the internet sales where someone can check and reserve and the range of products is big.
Understanding demographic factors such as age, gender, income level, education level, occupations etc., helps to create effective marketing strategies to boost brand loyalty and membership rates to attract more customers
Marketing is not just about selling and advertising products and services. In general, marketing is associated with identifying the particular wants and needs of a target market of customers, and then working to satisfy those customers better than the competition. This involves doing market research on customers, analyzing their needs, and then making strategic decisions about product design, pricing, promotion and distribution or place (Bethel, 2007). Understanding ways to identify the target market is crucial in developing market strategy. This paper is intended to define target marketing and examine a market analysis of Stacy's Pita Chip Company.
Data can give you quite a bit of information about your customers. By examining it, you will be able to begin to see patterns and learn the habits of your customers. This could mean that you are able to provide the correct number of products at the perfect time instead of having a shortfall or being left with additional stock long after interest has fallen in the product.
Conclusion Companies are better able to market their products to consumers if they have a good Understanding of the consumers and the basic purchase decision process. By understanding the consumer and the type of purchasing behavior associated with different products, marketers are more likely to create a marketing campaign that positively impacts the consumer’s purchasing decision.
“Because of the potential problems and expense of test marketing, marketers instead may use special computer software to conduct simulated test marketing that imitates the introduction of a product into the marketplace.” (Solomon, Marshall, and Stuart 236) By gathering and understanding this information instead of expensively traveling, marketers will get a better idea on where and when to test market their product. “The process entails gathering basic research data on consumers’ perceptions of the product concept, the physical product, the advertising, and other promotional activity.” (Solomon, Marshall, and Stuart 236) It is mostly important that a marketer understands the customers desires and where to test market to these customers because if they do not have this correct information, time will be wasted and the product will not be
Briefly it is a systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company, allows management to make the changes necessary for better results through adopting a proactive approach. Therefore, if a company wants to know what type of products or services would be profitable it should make a market research. Furthermore, a comprehensive research will enable the company to know about the product imperfections (if there are) and to know if it has been able to satisfy customers’ needs. It attempts to provide accurate information that reflects a true state of affairs. Due to market research the company can formulate a viable marketing plan and estimate the success of its existing plan. There are two main sources of marketing research information:
Demographically we can segment the market into groups based on age, gender, family- size, income, family life cycle and occupation.
right places to get maximum exposure to potential customers? This would also include the suitability of the marketing and launching. of the product or service. The acceptability of the product, whether the risk of launching this product is acceptable to the company. The feasibility whether the product will work within the existing ice cream market.
As an entrepreneur you will be coming up with a business plan for a product or service that you think is going to be a big hit, so where do you go from here? The first thing an entrepreneur should do is conduct a market analysis, which is an in depth assessment of potential target market, competition and need for a product or service. Conducting a market analysis also provides a realistic and honest assessment of the viability of your new idea. It also provides you with critical information and data necessary to successfully start and grow a business. The first step is to identify your product; you can do this by creating a customer profile of your target market. If your target audience is a consumer you should determine your customers age, gender and income level of your audience. If your target audience is businesses you should determine company size, industry, and number of employees. Conducting a market analysis and being in sync with your customers’ wants and needs is a lot of work but it is worth it in the long run. Knowing where your consumers are coming from gives you the tools to correctly identify how they will react in your market. In figuring this out you will be able to focus your attention on those details that are most important to your consumers. Targeting a niche is a great way for small companies to take advantage of a market that large companies cannot afford to take a chance on while also offering a competitive advantage that large companies do not have.
Generally, in economics, the meaning of market is the collective sellers and buyers of a particular service or good and the dealings amidst themselves.