This document discusses potential and forecasting, and defines two types of potential estimates: market potential and sales potential. Market potential is defined as the total amount of all brands in a product category that could possibly be sold, while sales potential is defined as the total amount of a single brand that could possibly be sold. The document outlines factors to consider when determining market potential such as analyzing the potential customer base and competition. It also defines sales potential as a company's expected market share capture and explains it is typically expressed as a percentage of market potential based on market share predictions. In concluding, the document contrasts that market potential is the total industry sales, while sales potential indicates maximum sales from prospective buyers.

1. PRESENTED BY:
Mithisar
NIT Silchar

2. What is Potential?
› having or showing the capacity to
develop into something in the future.
What is Forecasting?
› predict or estimate

3. There are two types of POTENTIAL
ESTIMATES:
 MARKET POTENTIAL
› the total amount of all brands in a product
category that could possibly be sold to the market.
 SALES POTENTIAL
› the total amount of a single brand that could
possibly be sold to the market.

4.  MARKET POTENTIAL
› is the entire size of the market for a product at
a specific time.
› It represents the upper limits of the market for a
product.
› Market potential is usually measured either by
sales value or sales volume.
› Changes with economic environment.

5. › Determining the Marketing Potential of a
product is part of a successful marketing
process and requires marketing research.
› We need to consider at least the following three
factors whether the marketing potential is
worth investment:
 Analyze the potential customer base.
 Analyze the competition.
 Analyze the current market environment that
may affect Market Potential.

6.  SALES POTENTIAL
› is the estimated market share that company
expects to capture in a market in a stipulated
time period after entering the market.
› Sales potential results are very important for a
company in determining whether to enter a
market or not depending on the estimated
profitability from sales potential.
› Sales potential is typically expressed as a
percentage of market potential based on
market share predictions.

7.  MARKET POTENTIAL VS SALES
POTENTIAL
› Market potential is the total sales or total
potential sales of all players in the industry in the
defined geographical area during a certain period
of time.
› Sales Potential is an figure indicating the
maximum or total sales from all prospective
buyers of the product.
› Market potential is a marketing exercise which
estimates the maximum potential a product can
have.
› Sales potential is generally a percentage of the
total market potential.