Calculating market potential involves several steps:
Market Segmentation: Divide the market into segments based on demographics, geography, psychographics, and behavior. Market Size: Estimate the size of each segment in terms of the number of potential customers. Market Demand: Determine the demand for the product or service within each segment. Market Share: Estimate the percentage of the market that the business can realistically capture. Revenue Potential: Multiply the estimated market share by the total market demand to calculate potential revenue.