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ENTREP MODULE 2 POTENTIAL forGRADE11.pptx
- 1. The Potential Market andthe Market Need
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- 5. A market isa place where buyers and sellers can meet to facilitate the exchange or transaction of goods and services. Markets can be physical like a retail outlet, or virtual like an e-retailer.
- 6. The Importance ofPotential 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.
- 7. How to IdentifyYour 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 to 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?
- 8. For example, abusiness 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.
- 9. Reaching Your PotentialMarket (Lake, L., 2019) Once you've identified and chosen a potential market to begin targeting, you will need new marketing strategies in place to communicate with them. 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.
- 10. The Potential Market Itis 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).
- 11. Available Market It isdefined 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).
- 12. Target Market This refersto a group of potential customers to whom a company wants to sell its products and services.
- 13. Penetrated Market This isa set of customers or clients who are already using a particular product or service. It the potential users of a product or service are aware of it, and in many cases are active consumers of it (www.businessdictionary.com).
- 14. Size of apotential market If the potential market is very small This means that it is better that the company doesn’t invest further in the product or category because people won’t buy it. If the size of the potential market is large So further investment can be made on the product development or modification, marketing, promotions etc. The size of the potential market gives an estimate of what all a company should do and how much it should invest.
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- 16. 1. Need: Thisrefers to the motivating force that compels action for its satisfaction. 2. Market: A market is a place where two parties can gather to facilitate the exchange of goods and services. 3. Existing customers: People who have already purchased your product. 4. Prospects: People who have not yet purchased your product but are considering it. 5. Target market users: People in your target market who are not currently looking for a solution.
- 17. Below are waysto define your market (Lancaster SCORE (2010): Consider whether the business offers a new solution to an old problem or complements an emerging trend. Have a clear picture of your target market. Determine the benefits that your product or service offers. Examine industry data that can confirm whether there is a sustained, growing demand for your product or service. Identify the percentage of market share that it is realistic for you to capture.