1. The Potential Market and the
Market Need
Saint Mary’s Academy
Agoo, La Union
SENIOR HIGH SCHOOL DEPARTMENT
2. Learning Competency:
• Recognize a potential market and analyze the
market need.
Saint Mary’s Academy
Agoo, La Union
SENIOR HIGH SCHOOL DEPARTMENT
3. Saint Mary’s Academy
Agoo, La Union
SENIOR HIGH SCHOOL DEPARTMENT
Analyze the pictures below and list down at least three (3) potential markets that entrepreneurs should consider
during this COVID -19 pandemic and indicate their needs.
4. Saint Mary’s Academy
Agoo, La Union
SENIOR HIGH SCHOOL DEPARTMENT
1. 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).
The Potential Market
5. Saint Mary’s Academy
Agoo, La Union
SENIOR HIGH SCHOOL DEPARTMENT
A potential market is the part of the market you can
capture in the future. It includes the demographic
groups that are not currently your customers but could
become customers in the future.
6. Saint Mary’s Academy
Agoo, La Union
SENIOR HIGH SCHOOL DEPARTMENT
2. Market potential is the total demand for a
product in a given business Environment.
7. Saint Mary’s Academy
Agoo, La Union
SENIOR HIGH SCHOOL DEPARTMENT
How to Identify Your Potential
Markets?
8. Saint Mary’s Academy
Agoo, La Union
SENIOR HIGH SCHOOL DEPARTMENT
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.
How to Identify Your Potential
Markets?
9. Saint Mary’s Academy
Agoo, La Union
SENIOR HIGH SCHOOL DEPARTMENT
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?
What demographic information does that new group have in common with
each other?
Questions that will help you identify both new ways to market your current products or services.
10. Saint Mary’s Academy
Agoo, La Union
SENIOR HIGH SCHOOL DEPARTMENT
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.
Reaching Your Potential Market
11. Saint Mary’s Academy
Agoo, La Union
SENIOR HIGH SCHOOL DEPARTMENT
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.
A.Target Market
12. 1. GEOGRAPHIC SEGMENTATION – total
market is divided according to geographical
location
VARIABLES to consider:
-climate
-dominant ethnic group
-culture
-density (either rural /urban)
13. 2.DEMOGRAPHIC SEGEMENTATION – divided based
on consumers
VARIABLES to consider :
-gender
-age
-income
-occupation
-education
-religion
-ethnic group
-family size
14. 3.PSYCHOLOGICAL SEGMENTATION – divided
in terms of how customer s think
VARIABLES to consider :
-needs/wants
-attitudes
-social class
-personality traits
-knowledge/awareness
-brand concept
-lifestyle
15. 4.BEHAVIORAL SEGMENTATION – divided
according to customers behavior pattern
VARIABLES to consider :
-perceprions
-knowledge
-reaction
-benefit
-loyalty
-responses
16. B. CUSTOMER REQUIREMENTS – are the
specific characteristics that the customers
need from a product or service
2 TYPES :
1.Service requirement
2.Output requirement
17. SERVICE REQUIREMENT- intangible things /
product that cannot be touched but the
customer can feel the fulfillment
OUTPUT REQUIREMENT – tangible things that
can be seen
- characteristic specifications that a consumer
expects to be fulfilled in the product
18. MARKET SIZE – like a size of the arena where
the entrepreneurs will play their business
- approximate number of sellers and buyers in
a particular market
- entrepreneur’s most critical task is to
calculate the market size and the potential
value that market has for their start-up
business
19. TO DETERMINE THE MARKET SIZE ,
entrepreneur will conduct a strategic market
research from a reliable source using the
following method :
1st STEP - estimate the potential market –
approximate number of customers that will
buy the product or avail the service
20. 2nd STEP – estimate the customers who
probably dislike to buy your product/ avail the
service
3rd STEP – for the entrepreneur to estimate the
market share, that means plotting and
calculating of the competitors market share to
determine the portion of the new venture
21. Saint Mary’s Academy
Agoo, La Union
SENIOR HIGH SCHOOL DEPARTMENT
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.
Penetrated Market
23. Saint Mary’s Academy
Agoo, La Union
SENIOR HIGH SCHOOL DEPARTMENT
A motivating force that compels action for its satisfaction. Needs range from
basic survival needs (common to all human beings) satisfied by necessities, to
cultural, intellectual, and social needs (varying from place to place and age
group to age group) satisfied by necessaries.
A driver of human action which marketers try to identify, emphasize, and
satisfy, and around which promotional efforts are organized.
1. Need
24. Saint Mary’s Academy
Agoo, La Union
SENIOR HIGH SCHOOL DEPARTMENT
A Market is a place where two parties can gather to facilitate the
exchange of goods and services. The parties involved are usually
buyers and sellers. The market may be physical like a retail outlet,
where people meet face-to-face, or virtual like an online market,
where there is no direct physical contact between buyers and sellers.
2. Market
25. Saint Mary’s Academy
Agoo, La Union
SENIOR HIGH SCHOOL DEPARTMENT
A market is any place where sellers of particular goods or services
can meet with buyers of those goods and services. It creates the
potential for a transaction to take place. The buyers must have
something they can offer in exchange for the product to create a
successful transaction
26. Saint Mary’s Academy
Agoo, La Union
SENIOR HIGH SCHOOL DEPARTMENT
Existing customers: People who have already purchased your
product.
Prospects: People who have not yet purchased your product but are
considering it.
Target market users: People in your target market who are not
currently looking for a solution.
28. Saint Mary’s Academy
Agoo, La Union
SENIOR HIGH SCHOOL DEPARTMENT
Why is it important to clearly define market needs?
29. Saint Mary’s Academy
Agoo, La Union
SENIOR HIGH SCHOOL DEPARTMENT
Below are ways to define your market:
• 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.
30. Saint Mary’s Academy
Agoo, La Union
SENIOR HIGH SCHOOL DEPARTMENT
• 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?
