The Term Market Potential Or Industry Potential
The term market potential or industry potential refers to what important marketing factor is the most essential marketing aspect? Well, the answer is the one that determines the overall success of any marketing strategy. If the business is able to exploit the opportunities provided by a given business opportunity, the market potential can go up. The same theory is applied in the financial domain also, but here we focus more on the practical implementation of the theory. If the business opportunity is very profitable, the demand for the product should be sufficiently high and the business should be able to exploit this demand by increasing its prices and moving the product to higher markets.
To determine the market potential, it is required to understand the overall profitability as well as the competitive landscape of the business. Allocating resources according to the profitability is considered to be an important part of the business risk management. Some businesses allocate some resources to generate the market share value of their products and others to capture the new opportunities arising in the market. The companies with the most appropriate knowledge about the market, the competition as well as the risk tolerance will be able to exploit the opportunities in the market and sustain their position.
The market potential can be captured through the development of the products or services. It should be understood that the potential of a product will depend upon the usability of the product in the market. If the product is usable, the profitability of the business increases due to the increased sales of the product. There is a misconception among small businesses that the size of the market or the income of the customers will increase if they introduce new products in the market, but the reality is different.
The term market potential refers to the amount of money that would be generated if a company decides to sell its product in the existing market. The companies should be capable of exploiting the existing market by improving the existing products and developing new products. If the company does not have the expertise in the new product niche, the market potential of the product will decrease since the competition will be increasing. The existing customer base will be retained, which will reduce the operating cost for the company.
The other aspect of the potential refers to the existing customers. In the existing market, the product will not have any competition as the company will be dealing with the only customer who may want the product. However, if the business develops new products or develops new ways of providing the same service, the customer base will expand and the competition will become difficult. The expansion of the customer base will lead to an increase in the demand for the product.
The term market potential or industry potential refers to the potential of a product or a service in the existing market place. The product or service may not be available in the existing market due to one or more factors, but the potential for the product or the service in the existing market still exist. The key is to determine the viability of the product in the market and then find out what the business can do that will make it viable in the existing market place. The business has to research the demand in the market, find out the trends in the market and develop strategies to target the existing customers. The strategy developed should be able to target the existing customers of the business and increase the sales of the products or the services offered by the business.