Sales Potential

Posted in Marketing and Strategy Terms, Total Reads: 11572

Definition: Sales Potential

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 and market potential are different things. 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. In a way, market potential can be said to be the estimated market size for a product category and sales potential is the prospective market share.

Hence, this concludes the definition of Sales Potential along with its overview.


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