Posted in Marketing and Strategy Terms, Total Reads: 3828
Definition: Market Potential
Market potential is the valuation of the sales revenue from all the supplying channels in a market. Market potential is the population that is interested in the product/ service that is being made or offered by an organization.
In other words , it is the potential money making capability of a firm if it capitalizes all advantages and everything goes its way.
It is a subset of the total population, where market potential is the population, all of whom can be potential consumers of the product or service. Market potential is the maximum population which would be interested in the product / service, and gives a good insight on the growth possibility as well.
Total market potential can be calculated in terms of units or money.