1. The Potential
Market and the
Market Need
MS. ANGELINE I. CURIOSO

2. LEARNING COMPETENCY

3. OBJECTIVES

4. 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
addressable market (TAM) (MBA Skool
Team, 2018).
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5. 5

6. • 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.
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7. 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.

8. 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.
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• What demographic information does that new group
have in common with each other?
For example, a business 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.
• 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?
Note: Depending on the size and age of your
company, as well as your industry, you may have
a clear picture of the potential markets that are
available.

9. • 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.
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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 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.
• 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. Potential Market
Available Market
Target Market
Penetrated Market
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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

11. 11
Available Market

12. 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.
Defining a specific target market
allows a company to home in on
specific market factors to reach
and connect with customers
through sales and marketing
efforts. (Kenton, W., 2019). 12
Target Market

13. 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.
(www.businessdictionary.com)
.
13
Penetrated Market

14. • The individuals or companies that are interested in a
particular product or service and willing and able to pay
for it.
• Knowing what to sell, when and to whom

15. Understand your Customers
• The Customer is always RIGHT!
• What do your customers want? How are you going to fill that want?

16. Demographics
Data that describes a group of people in terms of their age , marital status, family size, ethnicity, gender,
profession, education, and income.

17. Psychographics
Data that describes a group of people in terms of their tastes, opinions, personalities, traits, and lifestyle habits.

18. Identify your target market
for your product/service
1.Who are my customers: individual or companies?
2.If customers are individuals:
a. How old are they?
b. How much money do they earn?
c. Where do they live?
d. How do they spend their time and money?
3. If customers are companies:
a. What industries are they in?
b. Where are those industries located?
4. What needs or wants will my product or service
satisfy?
5. How many potential customers live in the area in
which I want to operate?
6. Where do these potential customers currently buy
the products or services I want to sell them?
7. What price are they willing to pay for my products
or services?
8.What can I do for my customers that other companies

19. Customer Profile
• A description of the
characteristics of the person or
company that is likely to
purchase a product or service.

20. Market Segments
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Groups of customers that share common characteristics .
• Segmenting or dividing your target market into several small groups
can help you develop a product or service that will meet the
customer needs.
• You can meet the needs of the entire market-narrow it down.

21. Understand the Competition
Business must identify some special customer’s need or want that is not being met.

22. Market
Research
System for
collecting,
recording, and
analyzing
information
about
customers,

24. Secondary
Data
• Data found in already
published sources.
• Population, family size,
household, economic
trend, industry
forecasts and other
information.

25. Primary Data
• Information collected for the very
first time to fit a specific purpose.
• Helps identify and understand the
target market
• Questionnaire/survey
*Observation*
Watch-see how many customers would be in that area
*Focus Group*
An interview with groups of target customers who provide
valuable ideas on products or services in depth discussion
Disadvantage of primary data
-Can be very time consuming.

26. 5 steps in primary
market research
1. Define the question
- You need to define exactly what it is that
you are trying to find out.
2. Select a Research Method
- Survey? Observation? Focus Group? How
many people should be involved in each?
- The method you use will depend on what
type of information you want to gather.
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.

27. 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.

28. Identify your Competition Direct Competition
-Competition from a business that makes
most of its money selling the same or similar
products or services as another business.
Indirect Competition
-Competition by a business that makes only a
small amount of money selling the same or
similar product or service as another
business.

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Audience Q&A Session
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30. SWOT Analysis
MS. ANGELINE I. CURIOSO

34. SWOT
Analysis
Oppurtunity
Threats
Strengths
Weakness

35. STRENGTHS
Characteristics of the business or a
team that give it an advantage over
others in the industry.
Positive tangible and intangible
attributes, internal to an
organization.
Beneficial aspects of the
organization or the capabilities of
an organization, process
capabilities, financial resources,
products and services, customer
goodwill and brand loyalty.
Examples - Abundant financial
resources, Well-known brand name,
Economies of scale, Lower costs [raw
materials or processes], Superior
management talent, Better
marketing skills, Good distribution
skills, Committed employees.
What is SWOTAnalysis?

36. WEAKNESSES
Characteristics that place the firm at
a disadvantage relative to others.
Detract the organization from its
ability to attain the core goal and
influence its growth.
Weaknesses are the factors
which do not meet the standards
we feel they should meet.
However, weaknesses are
controllable. They must be
minimized andeliminated.
Examples - Limited financial
resources, Weak spending on R & D,
Very narrow product line, Limited
distribution, Higher costs, Out-of-
date products / technology, Weak
market image, Poor marketing skills,
Limited management skills, Under-
trained employees.
What is SWOTAnalysis?

37. OPPORTUNITIES
Chances to make greater profits in
the environment - External attractive
factors that represent the reason for
an organization to exist & develop.
Arise when an organization can
take benefit of conditions in its
environment to plan and execute
strategies that enable it to
become more profitable.
Organization should be careful and
recognize the opportunities and
grasp them whenever they arise..
Examples - Rapid market growth,
Rival firms are complacent, Changing
customer needs/tastes, New uses for
product discovered, Economic boom,
Government deregulation, Sales
decline for a substitute product .
What is SWOTAnalysis?

38. !
THREATS
External elements in the
environment that could cause
trouble for the business - External
factors, beyond an organization’s
control.
Arise when conditions in external
environment jeopardize the
reliability and profitability of the
organization’s business.
Compound the vulnerability when
they relate to the weaknesses.
Threats are uncontrollable. When a
threat comes, the stability and
survival can be at stake.
Examples - Entry of foreign
competitors, Introduction of new
substitute products, Product life cycle
in decline, Changing customer
needs/tastes, Rival firms adopt new
strategies, Increased government
regulation, Economic downturn.
What is SWOTAnalysis?

39. 39
Audience Q&A Session
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