Lesson 2the Potential Market and The Market Need
Lesson 2the Potential Market and The Market Need
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The Importance of Potential Markets (Lake, L., 2019)
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How to Identify Your Potential Markets?(Lake,
L., 2019)
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 demographic information does that new group
have in common with each other?
• What related products will they need in the future?
For example, a business that makes face masks and PPEs
• Who else could make use of the products I am selling could identify potential markets such as:
now?
• Hospitals and other health related industries whose
• What demographic information does that new group employees are prone to COVID -19 virus and other
have in common with my current customers? viruses.
• Business industries and other organizations who want to
Note: Depending on the size and age of your ensure the health condition of their employees.
company, as well as your industry, you may • Employees and workers who need to report to work to
earn income.
have a clear picture of the potential markets that
• Households who needs to go out for their necessities.
are available. 8
Reaching Your Potential Market (Lake, L., 2019)
Once you've identified Click
andicon
chosen
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potential market to
begin targeting, you will need new marketing strategies in
place to communicate with them. Use this profile to
identify:
• The concerns,
• The demographic struggles, or problems
information that that you can help
people in a group them overcome.
have in common. • What values matter to
• The best forms of them, both in
media to reach them. everyday life and
when shopping.
• How they prefer to
• The language that
shop and make
purchases resonates with them.
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The figure below depicts what is a potential market with respect
to the total population and how it can be converted to a
penetrated market:
Total Population
Potential Market
Available Market
Target Market
Penetrated
Market
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Available Market
• Prospects who are willing
and capable (have sufficient
resources) buyers, and have
access to a particular market
or service
(www.businessdictionary.co
m).
• A description of the
characteristics of the person or
company that is likely to
purchase a product or service.
Market Segments
Groups of customers that share common characteristics .
*Focus Group*
An interview with groups of target customers who provide
valuable ideas on products or services in depth discussion
3. Collect Data
- Collect secondary data first. (Demographic &
Psychographic)
- This will help you determine what kind of
primary data research to perform.
- Surveys-need to be clear, easy to answer, and
only include the most important questions.
5 steps in primary
market research
4. Analyze Data
- Interpret the information
- Consider the market segment you are
targeting
5. Draw Conclusions
- Once you have analyzed and interpreted
your data, you will need to determine how
to use the information.
- Develop a plan of action based on the
information you found in market research.
Identify your Competition Direct Competition
Indirect Competition
Threats
What is SWOT Analysis?
STRENGTHS
WEAKNESSES
OPPORTUNITIES