How to Determine Whole Potential of the Market

This post is about how to find your client and use the full potential of the market.

Business owners needs to understand what potential the market has. To do this, he or she need to analyze the target audience, determine what percentage of the entire market have been attracted, and what market percentage can still be used. However, all this should be done taking into account the solvency of your target audience. For example, at first glance, a densely populated district has more potential than a cottage village. However, if you are a manufacturer of an exclusive product, then a large market with low solvency is not your way.

Target audience is all those who might be interested in your product or service. We distinguish 4 groups of target audience:

  1. Audience who is already your customers. The main marketing task in this segment is to retain (increase loyalty).
  2. Customers who know the product but haven’t bought it. Here the main marketing task is to push you to buy. These two groups have entered the sales funnel and are at some stage.
  3. Customers who know nothing about a product or service. Of course, this often does not apply to consumer goods, but innovative products often have such a segment. The main marketing challenge is to increase awareness. This group of customers is not in the sales funnel and needs to be worked with the most in the first stage.
  4. Customers who have chosen a competitor. The main marketing task is to rewire. Whole set of the marketing gimmicks associated with promotions, loyalty programs, etc. come into work.

When you understand what share of your market and what potential has not yet been realized, you can revise the sales strategy. Distribution channels fall into 2 broad categories.

Direct sales. Any enterprise can set up an independent sale to the end consumer. This option is most often found in small and medium businesses. Direct sales can be carried out either through our own online or physical stores, or through wholesale customers. You can do sales yourself (if your business is retail, then this is the only kind of available strategy). Then all marketing will fall on your shoulders.

Intermediaries and distributors. We have combined these two concepts, since the ideological mechanism of these channels is similar. However, there is still a difference. Intermediaries and distributors sell a large volume of goods in a specific market. But distributors, unlike intermediaries, are obliged to maintain corporate standards, product and customer strategies of the enterprises. Here, the task of attracting customers (and, accordingly, marketing) lies on the shoulders of partners.

It should be noted that the customer analysis presented above is only a first approximation. Further, any group must be divided depending on the needs. There are many options for segmenting the market. We advise you to think about the product destination. Ask yourself the question about whom can the product be useful. What problem does it solve? Having found the answer to this question, you will get the first round of clients. Further it is necessary to clarify the data. The questions may vary. If the product is for the family, then it is logical to ask which family member will buy it and what is the person’s daily schedule. And if you sell through intermediaries, think about what bonuses they need. The more accurately you describe your audience (real and potential), the better you will understand the audience and will be able to build your client and marketing strategies.