Market potential

Market potential - maximum capacity of a market (turnover or sales volume) for a product or service in a certain period of time and thus the upper limit for the market volume. The market potential thus shows for a future period which turnover or sales in the market can be achieved by all providers under certain premises. The market potential is a theoretical, fictitious variable that depends on how the relevant market (target group) is defined. The market potential changes over time due to the following influencing factors:

  • Season course
  • Business cycle
  • Life cycle
  • Changed framework data such as needs, income, etc. (sales potential)
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