potential market

Definition
Aggregate of all individuals, firms, and organizations in a particular market who have some level of interest in a particular product.

market positioning
Positioning refers to the user's perceptions of the place a product or brand occupies in a market segment. Or how the company/library's offering is differentiated from the competition's.

Market Potential and Market Sizing Analysis

Market analysis services from Mapping Analytics help you know the economic opportunity available to you in any geographic market. Whether you sell to consumers, to businesses, or both, market sizing provides intelligence you need to deploy sales and marketing resources effectively.

Benefits of Market Potential Analysis

Understand market potential for a single store, network of stores or a new market Deploy resources effectively by ranking markets in priority order Forecast total opportunity in terms of number of customers and revenue potential Estimate your market share

Market Potential Analysis: What We Can Do for You

Market potential analysis is a primary analytic service performed by Mapping Analytics. We have the people, experience, tools, and data required to perform sophisticated and accurate market sizing. A market potential analysis from Mapping Analytics may include:

A customer profile to understand where to find more like them Market penetration and market share reports showing performance in existing markets and expected performance in new markets Market ranking reports allowing you to prioritize resource deployment into new markets A geographic view of market opportunity on detailed maps

Strategies for Sizing Markets

What is a geographic market worth to your business? Mapping Analytics will help you find the answer. Market potential can be expressed as a function of:

The number of customers purchasing Amount purchased Frequency of purchase

In other words, market potential = (how many * how much * how often)

Bottom Up or Top Down Market Analysis?

It all depends on your specific needs. Mapping Analytics can advise you on the best approach to sizing any market. We employ various methodologies and data sets to get you the answers you need.

A bottom up approach to market sizing starts with your customers. How much and often do they buy? What is their profile? How many potential customers do you have in the market based on your customer profiles? How can you reach them? A top down approach starts with market and industry data. It takes a close look at a geographic market area and profiles the consumers and/or businesses to let you know their propensity to buy your products and services.

Mapping Analytics has expertise in both these approaches to market sizing. We also have a wealth of data sources through partnerships with the best data providers in the industry. We can match the right data for market analysis to your business and market strategy.

Cluster Analysis for Market Sizing

We often use lifestyle clustering systems to size consumer markets. Clustering systems operate under the premise that "birds of a feather flock together." That means people with similar buying behaviors and demographic profiles tend to live close together. This helps you identify neighborhoods or markets where your potential is highest.

Cluster analysis identifies key segments in the population that are more likely to purchase your products than the average consumer Knowing in which clusters people reside provides a reasonable means of understanding and predicting how they will behave Understanding which clusters are more likely than others to purchase allows better targeting Clusters are tied to geography, allowing you to identify and prioritize neighborhoods, trade areas and markets

Access Market Opportunity

Market analysis services from Mapping Analytics will provide the key intelligence you need to rank and prioritize markets. You will know:

The top new geographic markets to target based on customer or revenue potential Which markets where you currently do business have untapped potential

Gaining this market understanding is essential to growing and expanding your business. But it isn't enough on its own.

What steps are you taking to gain market share where there is market potential?

You need to act upon your new found market understanding by deploying sales and marketing resources effectively. This is where Mapping Analytics separates from other firms that might offer you analytic services. We can help you choose higher-performing store or business locations, align your sales force more productively, and acquire prospect lists. All so you can tap into the market opportunity we've helped you identify.

Market Potential Example

Let's say you sell reverse mortgages and your ideal customer is 65 years of age or older and owns a home valued at $150,000 or higher. If you don't already know this about your customers, our customer profiling services can help you discover it. Mapping Analytics will then perform market potential analysis using market data, demographics and/or lifestyle clustering sytems to find areas where high concentrations of your ideal customer live. From there, it's ranking the potential markets and deploying resources by selecting locations of branches or performing targeted direct marketing. What's the market potential for your products and services? Talk to us and we'll help you find out.

Sales Territory Alignment, Design, Optimization and Mapping

Sales organizations often change. Sales management needs to change sales territories as well. Key customers, sales people, sales managers, products, and competitors come and go. Each of these factors impacts sales productivity and creates the need for sales territory analysis. Sometimes just a small sales territory realignment can have a big impact on your sales force productivity.

Sales territory management is a critical and ongoing process to help maximize sales productivity and revenue. When was the last time your company underwent a sales territory alignment project or created new sales territory maps?

Is Your Sales Force Productive?

Optimized sales territories that are compact in size and aligned to each other without gaps will help you achieve a number of measurable and sustainable benefits including:

Better customer coverage and customer service leading to increased productivity and sales revenue Increased sales by prioritizing accounts with the most potential Reduced costs of sales through shorter travel times - often called 'windshield time' - and associated travel expenses Improved morale, performance and tenure of sales people due to equitable distribution of accounts and a level playing field for achieving rewards Competitive advantage through the ability to reach new opportunities faster than your competitors

If Your Territories are Not Balanced . . .

Studies show that 80% of companies are missing 2-7% of unrealized sales because their territories are misaligned. Poorly aligned and unbalanced territories have negative consequences. They include:

Missed revenue from not reaching all potential customers Higher sales costs due to excessive travel times and expenses Inefficiencies due to duplication of efforts among sales team Low morale and high sales force turnover due to inequitable territories that reward the size of the territory over individual effort Poor or excessive customer coverage due to territories too large or small Sales management missing revenue goals

What to Do About Your Sales Territories

Start by downloading "Three Steps to More Productive Territories. This white paper outlines a valuable process for significantly improving the performance of your sales

territories. It contains practical advice written in plain English. And it will help you make a more informed choice about your sales territory alignment options. View it now.

You Can Use Market Potential Data to

Reach underserved consumers Identify the penetration of successful competitive products Analyze your market for purchase patterns

Definition: A set of consumers who profess some level of interest in a designed market offer.

Market Potential Analysis

Do you know how successfully your newly developed product will sell on the market? Planning, development and introduction of new products is always associated with uncertainty. Specific knowledge regarding potential target consumers and their probable spending on the new product provides you with more certainty concerning the market success of new product developments. We can offer you precise and reliable information in this area after conducting a market potential analysis Definition and Goals Market potential describes the maximum capacity of a defined market for a specific product / a service within a defined time period. In this context market refers to the total of all potential consumers with a certain need or desire who are willing or able to satisfy this need or this desire through the purchase of products / services. The sales potential can then be derived from the results of the market potential analysis. Market potential consists of the upper limit of total demand which would theoretically be converged on at (infinite) rise of marketing expenditures of all relevant providers (see figure). Applications Market potential analyses are especially used for growth or unsaturated markets for which market size cannot simply be estimated through the actual market volume. Market potential analysis offers decision support for specific questions for which such as: Exploration of potential (target) markets Determination of company locations Evaluation of ideas (screening) Designation of sales areas

Market Potential Analysis Procedure at aproxima

Specification of model assumptions Development of assumptions regarding the cause-effect relationships between factors used Data collection Analyses of secondary information or specially conducted survey Specification of the number of consumers Often from secondary statistical sources Estimation of purchasing rates Determination of average consumer spending through random sample analysis Calculation of market potential Multiplication of specified number of potential consumers with determined average purchasing rates

Market Potential Analysis

Prioritize market opportunities based on potential demand for your products or services
With powerful solutions for gap analysis and demand potential measurement, Pitney Bowes Business Insight offers a single solution for market potential analysis. We provide industry-leading data, geographic analysis software and professional consulting services to help you identify where the best opportunities exist for your products or services. From how many stores a trade area can support to complex market optimization models, our analyses are based on actual customer data to help you make more profitable real estate decisions. Predictive analytics help you capitalize on opportunities:

Guide mission-critical decisions with accurate analyses

Identify and prioritize market expansion opportunities Pinpoint profitable in-fill opportunities in existing markets?

Create a proactive real estate expansion strategy

Identify gaps in the market for new banks, restaurants and retail stores Go to market faster for an advantage over the competition Develop realistic compensation plans based on market potential

Improve marketing efficiencies and ROI

Create customer profiles and clusters to identify prospects Match creative messaging to target audiences