1.
PRESENTED BY:
Mithisar
NIT Silchar

2.
What is Potential?
› having or showing the capacity to
develop into something in the future.
What is Forecasting?
› predict or estimate

3.
There are two types of POTENTIAL
ESTIMATES:
 MARKET POTENTIAL
› the total amount of all brands in a product
category that could possibly be sold to the market.
 SALES POTENTIAL
› the total amount of a single brand that could
possibly be sold to the market.

4.
 MARKET POTENTIAL
› is the entire size of the market for a product at
a specific time.
› It represents the upper limits of the market for a
product.
› Market potential is usually measured either by
sales value or sales volume.
› Changes with economic environment.

5.
› Determining the Marketing Potential of a
product is part of a successful marketing
process and requires marketing research.
› We need to consider at least the following three
factors whether the marketing potential is
worth investment:
 Analyze the potential customer base.
 Analyze the competition.
 Analyze the current market environment that
may affect Market Potential.

6.
 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 is typically expressed as a
percentage of market potential based on
market share predictions.

7.
 MARKET POTENTIAL VS SALES
POTENTIAL
› 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.