GOOD

MORNING
CLASS!
03 THE POTENTIAL
MARKET
WHAT IS A POTENTIAL MARKET?

Potential market refers to the percentage of a

specific population that has shown interest or
consumption behavior towards a product or
service. It is also known as the Total addressable
market, or TAM (MBA Skool Team, 2018). On the
other hand, market potential refers to the total
demand of a product in a particular business space
(Bhasin, H., 2018).
Identifying your potential market group
    
  In identifying the potential market for your product,
you must study and closely analyze the demographics of
your current target market and then compare it with the
demographics of groups you have not targeted yet. Once
you find their commonality, you may create new goals in
expanding your product's reach and re-strategize on how
to sell it to the potential market by making them your new
target group.
 To help you figure these things out, here are some
assessment guide questions for your product or service. By
answering these questions, you may start with a new product
or a rebranded version of your current products.
• What kind of products do my consumers need right
now?
• Based on their present consumption pattern, what
products can they possibly need in the long run?
• Who else could be possibly interested in the products I
am marketing now?
• What are the similarities of my current customers to the
non-customer groups?
 Illustration
For instance, during the pandemic, there is a rise in demand for
fashionable pieces that are still COVID-19 appropriate. Businesses like
accessories and clothing shops are just some of the industries affected
by this shift in behavior.  This is why colored PPEs, beaded mask
lanyards, mask holders, and linen masks are the new trend. With this,
these shops may consider the following markets:
• Gen Z (College students who want to play dress up and
accessorize at home)
• Frontliners currently working in Hospitals
• Other essential workers that often visit office/sites
 Reaching Your Potential Market

        According to Lake (2019), the next step to identifying your

potential market is creating new marketing strategies to
communicate and connect better with the new target group. Here
are some of the key observations you must consider for your
preparations:
• The demographic information that people in a group have in
common.
• The best forms of media to reach them.
• Shop and purchasing preferences
• 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
    After understanding what the potential market is all about, let us look at it with respect to
the total population. Similarly, knowing how to penetrate a new group properly is as
important as doing research about their purchasing behavior.

        There are several terms that will help you better understand this matter:
     
•Available Market: Refers to possible
buyers in terms of sufficient resources,
access to the product and willingness to buy.

•Target Market: This group, on the other

hand, refers to people that are yet to be
reached by your products and services. As
the focus group, they are the people you will
be marketing your services to.

•Penetrated Market: Refers to existing

clients and already loyal customers of your
product/s.
The Market Need
1.Need
The market need refers to actions on a product that will result in customer satisfaction. It
can range from basic survival needs up to socio-cultural necessities.

2.Market
The market, in entrepreneurial terms, is when two parties facilitate an exchange of products
or services that can benefit both buyers and sellers. The market can be physical or virtual,
depending on the market's environment (Kenton, W. & Boyle, M., 2020).

        There are 3 main compositions of your market  (Stull, C., Myers, P.& Scott D.M. (2008):

•Existing customers: Users and consumers of your products at present

•Prospects: Possible customers, people who consider buying your goods and services
•Target market users: People who are not yet involved or have no idea yet about your
product.
Define the Market Need for Your New Business
        The market at present usually demands that your business aligns with their
needs. To do this, you must improve the content of your marketing efforts. This
will result to a relieved pressure to your product against growing competitors and
align strategies for market patterns and interests present in the buying process of
your products and services.
        You need to 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. The more competition you have, the lower the margins will be.
• Consider how realistic your pricing is. How can you present your product
or service to potential customers so that it appears to be a good
value, while still affording you a healthy profit?
04 PRODUCT: ITS NATURE AND
SUSTAINABILITY
Concepts about Product and Service (Entrepreneurship, n.d.)
         From the previous module, you have learned all about finding
a potential market which includes re-assessing your products. But
what do we consider a product anyways? A product refers to
anything that can be offered in the market. It can either be
advertised to draw attention to a specific category or collection, or
to simply advocate for what your business believes in. Thus, a
product can either be a physical/material good or intangible
services like ideas.

         In a market, services are products that involves procedure or

activities that benefits the buyer even without a tangible purchase
from you. Some examples of services include banking, telecomm
assistance, event set-up and so on (Claessens, M., 2015). Thus,
services are examples of intangible products from an output of
another person or a specialized team.
Identifying and Meeting Customer Needs
(Entrepreneurship, n.d.)
     
As an entrepreneur, you must have a keen
understanding of your customer needs. Both visible and
invisible needs are relevant in coming up with the best
solutions through the products or services you will be
offering them. Providing superior service gives you an
advantage in the market as customers tend to have
specific requirements before reaching total satisfaction.
This is why entrepreneurs must be innovative and
creative- to continue creating solutions to consumer
problems, now and in the future.
Why is it important to assess customer
needs?

1.It ensures customer satisfaction and loyalty

2.It addresses customer’s unique and
complicated needs
3.It helps your customers figure out what they
want or be more specific in what they really
need.
4.It avoids legal complaints and lessen brand
risks.
Key Points (Entrepreneurship, n.d.)

1.To ensure customer satisfaction, entrepreneurs

must correctly identify customers’ needs.
2.To identify needs, entrepreneurs must both
listen and ask the right questions.
3.After identifying needs, always check for
additional or related needs.
4.As an entrepreneur, use your knowledge and
experience to identify and present the right
products, services, and solutions to meet your
customers’ needs.
What is the Entrepreneurial Process?

         The entrepreneurial process is necessary to any kind

of business present in any type of industry. It typically
includes 4 main processes:
1.Opportunity spotting and assessment
- Entrepreneurs are able to recognize opportunities and
sprouting ideas in their environment by simply studying the
behavior of their consumers.
2.Developing a business plan - A business plan is a
comprehensive paper that details the business's
marketing, operational, human resource, financial,
strategic direction, and tactics.
3. Determining the Capital Need- it is mandatory in
the entrepreneurial process to calculate the resources
needed to establish the business and compare this
against the entrepreneurs’ current resources.

4. Running the Business- This is where the

entrepreneur should use the resources allocated for
the new venture. The business plan from step 2
should already have been observed and implemented
from operations, to marketing, to monitoring and
checking.
THANK YOU