A potential market is a segment or volume of possible consumers who would likely be interested in a brand’s product but haven’t yet made a purchase. It is the part of the market that a brand can capture in the future. Identifying a potential market is important for businesses to grow revenue and expand their reach. Potential markets can be closely aligned with a businesss current market segment.

There are different forms of potential markets, including available market, target market, and penetrated market. Available market is the part of the potential market that has a strong motivation to purchase the product. Target market is the part of the available market that the company decides to pursue. Penetrated market is the part of the target market that the company has already captured.

Calculating the potential market involves estimating the maximum volume of sales that could be available to all companies in a given industry over a given period. The estimation of the potential market is used by companies to make business decisions, such as whether or not it is worthwhile to introduce a given concept in a specific market.

Identifying a potential market involves outlining clear promotional plans for attracting and capturing that market. To identify a potential market, businesses can consider factors such as demographics, geographic areas, and consumer behavior. Understanding potential markets can help businesses minimize investment risk, identify potential threats, and expand their business.