Recognize a

Potential Market
and Analyze the
Market Need
The Potential Market
► 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)

► 2. 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
► 3. Market potential is the total demand for a product in a given
business environment
The Importance of Potential
Markets
 How to Identify Your Potential
Markets
► 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.

► Ask yourself these questions that will help you identify both
new ways to market your current products or services, as
well as new products and services that you can begin
selling.
► 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?

► For example, a business that makes face masks and PPEs could identify potential markets such as:
►  Hospitals and other health related industries whose employees are prone to COVID -19 virus and
other viruses.
►  Business industries and other organizations who want to ensure the health condition of their
employees.
►  Employees and workers who need to report to work to earn income.
►  Households who needs to go out for their necessities.

► Note: Depending on the size and age of your company, as well as your industry, you may have a
clear picture of the potential markets that are available.
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