Determining market potential involves several steps:
Market Research: Conduct thorough market research to understand the size and dynamics of the market. This includes analyzing market trends, customer needs, and competitive landscape. Segmentation: Divide the market into different segments based on demographics, psychographics, and behavioral factors to target specific groups more effectively. Market Size Estimation: Estimate the total number of potential customers and the average revenue per customer to calculate the overall market size. Assess Growth Rate: Analyze the market growth rate to understand future potential. Consider factors such as economic conditions, technological advancements, and industry trends.