Potential Market Analysis PDF

RECOGNIZE A POTENTIAL MARKET MODULE 2 POTENTIAL MARKET 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 THE IMPORTANCE OF POTENTIAL MARKETS Potential mark...

RECOGNIZE A POTENTIAL MARKET MODULE 2 POTENTIAL MARKET 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 THE IMPORTANCE OF POTENTIAL MARKETS 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 3 HOW TO IDENTIFY YOUR POTENTIAL MARKETS 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 4  REACHING YOUR POTENTIAL MARKET 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 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. 5  AVAILABLE MARKET These are prospects who are willing and capable (have sufficient resources) buyers, and have access to a particular market or service. It is defined as the number of people who are both willing and capable of buying a particular product or service in a particular market. 6  TARGET MARKET This 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. 7 PENETRATED MARKET This is 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. 8 SIZE OF A POTENTIAL MARKET helps a company understand the level of investment it should make further in the market, while taking into consideration other factors 9  SIZE OF A POTENTIAL MARKET If the potential market is very small, it means there is a very small fraction of the total population showing any interest in the product or category. If the size of the potential market is large, it means that there is a huge fraction of the total population which is showing interest in the product. 10  THE MARKET NEED NEED A market is a place where two parties can This refers to the gather to facilitate the motivating force that exchange of goods and compels action for its services. The parties satisfaction. Needs involved are usually range from basic buyers and sellers. survival needs satisfied by necessities, to MARKET cultural, intellectual, and social needs satisfied by necessaries 11  Your market consists of: Existing Prospects Target customers People who have market users People who have not yet People in your already purchased your target market purchased your product but are who are not product. considering it. currently looking for a solution. 12 ENTREPRENEUR IAL IDEAS  ENTREPRENEURIAL IDEAS The creation of an entrepreneurial idea leads to the identification of entrepreneurial opportunities, which in turn results in the opening of an entrepreneurial venture. 14  The entrepreneurial process of creating a new venture is presented in the diagram below: Creation of Identification Opening of entrepreneur of entrepreneur ial entrepreneur ial Ideas ial Venture Opportunitie s 15 THE ENTREPRENEUR IAL PROCESS OF CREATING NEW VENTURE  ESSENTIALS IN ENTREPRENEUR’S OPPORTUNITY – SEEKING ENTREPRENEURIAL ENTREPRENEURIAL MIND FRAME HEART FLAME This allows the Entrepreneurs are entrepreneur to see driven by passion; they things in a very are attracted to positive and discover satisfaction in optimistic way in the the act and process of midst of difficult discovery. situation 17  ESSENTIALS IN ENTREPRENEUR’S OPPORTUNITY – SEEKING ENTREPRENEURIAL GUT GAME This refers to the ability of the entrepreneur of being intuitive. This also known as intuition. 18 SOURCES OF OPPORTUNITIES 1. CHANGES IN THE ENVIRONMENT Entrepreneurial ideas arise when changes happen in the external environment. A person with an entrepreneurial drive views these changes positively. External environment refers to the physical environment, societal environment, and industry environment where the business 20 CHANGES IN THE ENVIRONMENT 01 THE PHYSICAL a. Political forces ENVIRONMENT INCLUDES: b.Economic forces a. Climate c.Sociocultural forces b. Natural d.Technological resources environment c. Wildlife THE SOCIETAL ENVIRONMENT INCLUDES THE VARIOUS FORCES LIKE: 21 CHANGES IN THE ENVIRONMENT 01 THE INDUSTRY ENVIRONMENT OF For example, one factor in THE BUSINESS the physical environment INCLUDES: that can easily change is a. Competitors the climate. An b. Customers individual with entrepreneurial drive can c. Creditors be extremely imaginative d. Employees and inventive in identifying opportunities. e. Government f. Suppliers 22  2. TECHNOLOGICAL DISCOVERY AND ADVANCEMENT A person with entrepreneurial interest sees possibility of business opportunities in any new discovery or because of the use of latest technology. 23  3. GOVERNMENT’S THRUST, PROGRAMS, AND ThePOLICIES priorities, projects, programs, and policies of the government are also good sources of ideas 24  4. PEOPLE’S INTEREST The interest, hobbies, and preferences of people are rich sources of entrepreneurial ideas, like the increasing number of Internet Cafés at present could lead to the strong attachment of young people to computers. 25  5. PAST EXPERIENCES The expertise and skills developed by a person who has worked in a particular field may lead to the opening of a related business enterprise. 26  5 FORCES OF COMPETITION MODEL Competition – it is the act or process of trying to get or win something. 27 BUYER SThe buyers are the ones that pay cash in exchange for your goods and services. One example is the influence of the price or in the bargaining strategy. The buyer has a strong and magnified bargaining power.  POTENTIAL NEW ENTRANTS A new entrant is defined as companies or businesses that have the ability to penetrate or enter into a particular industry.  RIVALRY AMONG EXISTING FIRMS Rivalry is a state or situation wherein business organizations are competing with each other in a particular market. For example, it depends on the marketing strategy of your competitor, like giving freebies and special SUBSTITUTE PRODUCTS Substitute is one that serves the same purpose as another product in the market. For example, the consumers decide to use margarine as a substitute for butter. In case the price of butter increases, preferably the consumer will gradually  SUPPLIERS The Suppliers are the one that provide something that is needed in business operations such as office supplies and equipment. In an example where supplies and services being offered is unstable the intensity of the threat is strong in this kind of the competitive force in the industry THANK YOU ! MS. JAMANCY C. ESPIRITU