POTENTIAL MARKET

&
Market Need
ENTREPRENEURSHIP LESSON 2
 “Rise Up,
Start Fresh,
See the Bright Opportunity
in each NEW DAY.”
—Milton Berle
 PRETEST

Direction: Read and analyze the statements below. Determine whether the statement is TRUE OR
FALSE. Write TRUE if the statement is correct and write FALSE if otherwise.
___________1. A market is any place where two or more parties can meet to engage in an
economic transaction and should only involve legal tender.
___________2. Market includes retail stores and other similar businesses that sell individual
items to wholesale markets selling goods to other distributors but may not be
virtual.
___________3. Market refers to the whole area of operation of demand and supply.
___________4. A market signifies any arrangement in which the sale and purchase of goods
take place.
___________5. Market establishes the prices for goods and other services.
___________6. Markets are unified.
___________7. Markets can be controlled.
___________8. In business, research is not required.
___________9. Knowing your customer is very important.
___________10.Knowing your market/target customer is one of the priorities in having
business.
 LEARNING OBJECTIVES:
01 Identify potential market and the market
need.

02
Determine the possible products/ services
you could offer to the market to meet the
need.
03 Show interest in identifying potential market
and market need.
Total Population

Potential Market
Available Market

Target Market

Penetrated
Market
Potential
Market
 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).
 The Importance of Potential Markets
Potential markets are an important part of a
business's future growth. Ensure the future of your
business by identifying new customers. Think
proactively about ways for your business to grow and
change. Show the potential of your business to
investors or collaborators. Increase your revenue.
Create a plan B that will weather changes in the
economy or market.
 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.
 How to identify your potential markets:
Ask yourself these questions to 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?
 How to identify your potential markets:
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.
 Reaching Your Potential Market (Lake, L., 2019)
Once you've identified and chosen a potential market to begin
targeting, you will need new marketing strategies in place to
communicate with them. Use this profile to identify:

The demographic information that people in a group have in

common.
The best forms of media to reach them.
How they prefer to shop and make purchases.
The concerns, struggles, or problems that you can help them
overcome.
What values matter to them, both in everyday life and when
shopping.
The language that resonates with them.
 Take Note
The size of a potential market helps a company understand the level
of investment it should make further in the market, while taking into
consideration the other factors.
If the potential market is very small, it means there is a very small
fraction of the total population showing any interest in the product or
category. This means that it is better that the company doesn’t invest
further in the product or category because people won’t buy it.
If the size of the potential market is large, it means that there is a
huge fraction of the total population which is showing interest in the
product, so further investment can be made on the product development
or modification, marketing, promotions etc.
The size of the potential market gives an estimate of what all a
company should do and how much it should invest
Total Population

Potential Market
Available Market

Target Market

Penetrated
Market
Available
Market
Are prospects who are
-
willing and capable
(have sufficient
resources) buyers, and
have access to a
particular market or
service.
Total Population

Potential Market
Available Market

Target Market

Penetrated
Market
Target
Market
-This refers to a group of
potential customers to whom
a company wants to sell its
products and services. Target
markets are generally
categorized by age, location,
income, and lifestyle.
Total Population

Potential Market
Available Market

Target Market

Penetrated
Market
Penetrated
Market
-Is a set of customers or
clients who are already using a
particular product or service
 ASSESSMENT
Direction: Read and analyze the statements below. Identify whether this
refers to potential market, available market, target market, or penetrated
market.

_________1. They are described as active consumers of a product.

_________2. They are people who are both willing and capable of
buying a particular product or service in a particular market.
_________3. It is the part of the total population that has shown some
level of interest in buying a particular product or service.
_________4. It includes specific customers to whom a company directs
its marketing efforts.
_________5. They are customers or clients who are already using a
particular product or service.
 Assignment:

Direction: Accomplish the task in your one whole sheet of paper.

MARKET NEED
MARKET NEED
 Need
1.

-Is a motivating force that compels action for

its satisfaction. Needs range from basic
survival needs (common to all human
beings) satisfied by necessities, to cultural,
intellectual, and social needs (varying from
place to place and age group to age group)
satisfied by necessaries.
 Market
2.

- Is a place where two parties can

gather to facilitate the exchange of
goods and services.
 2.
Market
➢A market does not only refer to a
particular place but it refers also to a
market for a commodity or
commodities. It refers to an
arrangement whereby buyers and
sellers come in close contact with
each other directly or indirectly to sell
and buy goods.
 MARKET CONSISTS OF:

TARGET MARKET
EXISTING CUSTOMERS PROSPECTS
USERS

People who have People who have not People in your target
already purchased yet purchased your market who are not
your product. product but are currently looking for a
considering it. solution.
Market Size
- The number of
buyers and
sellers in a
particular
market.
Market Size
- The number of
buyers and
sellers in a
particular
market.
 Demographic
Group
- The study of the characteristics of
human populations, such as size,
growth, density, distribution, and
vital statistics.
 Demographic
Group
- The characteristics of human
populations, such as size, growth,
density, distribution, and vital
statistics.
 Market
Strategy
- It is a company’s marketing goals
and objectives combined into a
single comprehensive plan.
 Market
Strategy
- It is a company’s marketing goals
and objectives combined into a
single comprehensive plan.
 Market
Share
-This is one part of the
total market for a good or
service.
 Market
Share
-the percentage of total sales in a specific market
that is earned by a particular company, product,
or brand over a defined period. It is a measure of a
company’s dominance or competitiveness within
its industry and is often used as an indicator of
success.
 Market
Share
-the percentage of total sales in a specific market that is earned by
a particular company, product, or brand over a defined period. It is
a measure of a company’s dominance or competitiveness within
its industry and is often used as an indicator of success.
 Assessment:

Problem:
Three companies, A, B, and C, operate in the same industry.
The total sales in this market for a year is $500,000. The sales
of each company are as follows:
•Company A: $150,000
•Company B: $200,000
•Company C: $150,000
Questions:
1.What is the market share of each company?
2.Which company holds the largest market share?
Directions: Divide the class into two groups.

1st Group: State an opportunity/problem in our

society/economy.

2nd Group: Need to find the best entrepreneurial

business proposal to solve it. Then the First
group and the teacher will be given a chance to
accept the proposal or not.
 TEAM A TEAM B

OPPORTUNITY BUSINESS PROPOSAL

BUSINESS PROPOSAL OPPORTUNITY
OPPORTUNITY BUSINESS PROPOSAL
BUSINESS PROPOSAL OPPORTUNITY
 Lack of internet
access in the most
barangay/town.
Growing demands
of motorcycles.
 TEAM A TEAM B

OPPORTUNITY BUSINESS PROPOSAL

BUSINESS PROPOSAL OPPORTUNITY
OPPORTUNITY BUSINESS PROPOSAL
BUSINESS PROPOSAL OPPORTUNITY
THANK
YOU!!!