Market potential analysis helps companies identify viable markets for their products and allocate resources efficiently. It can be used to identify potential customers in new or existing locations, expand sales globally, and tap into untapped markets. Companies can use this information to redesign and repackage products to appeal to new markets.
Market potential analysis is a system used by companies to analyze a potential market with the aim of discovering how viable that market is in relation to the product the company has to offer. As such, it can be used by those companies with a product or service that they want to market. This type of analysis will help companies identify the strongest markets and also allow them to allocate their resources more efficiently.
One of the reasons for conducting a market potential analysis may be for the purpose of identifying potential customers in a new or existing geographic location. For example, if a company headquartered in Canada has a new product that it wants to introduce to the market, it will first conduct a market potential analysis of its environment to identify potential customers. The analysis can span multiple cities or multiple states. The result will inform the company about the areas of concentration based on where the main potential customers are.
The same company can also conduct an analysis of the market potential of other geographic locations when considering expanding sales. Such a move is necessary due to increasing globalization and the advantages offered by international trade. As such, the company can carry out an analysis of the market potential of various countries. The result of the analysis will reveal to the company where the largest cluster of potential customers is located. This information will allow the company to focus on markets with the greatest potential in terms of customer base.
Another reason to conduct a market analysis can be to find out where there may be a wealth of untapped resources or potential. Transitioning into this market may require a combination of market analysis, strategic design management, and effective marketing targeting that specific market to benefit from it. For example, a company that produces a certain type of product that does very well in one market may also benefit from packaging or designing the product in a way that other markets will accept it.
An example of this is a company that produces tailored pants that identifies middle-aged and wealthy men as its main market or customer base. That same company may discover, through market analysis, that there is an untapped market in the form of younger men between the ages of 21 and 35. The company could start a new line of redesigned and repackaged pants aimed at this market, making the pants more attractive to its customers. younger tastes.
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