ENTREP Introduction-3
ENTREP Introduction-3
ENTREP Introduction-3
Give Example...
Type of Markets
Potential Mar-
ket
Potential market is the part of the total population that has shown some
level of interest in buying a particular product or service.
Available Mar-
ket
• These are prospects who are willing and capable (have sufficient resources) buyers,
and have access to a particular market or service (www.businessdictionary.com).
• It is defined as the number of people who are both willing and capable of buying a
particular product or service in a particular market (MBA Skool Team, 2020).
Target Market
• This refers to a group of potential customers to whom a company wants to sell its
products and services.
• Target markets are generally categorized by age, location, income, and lifestyle.
• Defining a specific target market allows a company to home in on specific market
factors to reach and connect with customers through sales and marketing efforts.
(Kenton, W., 2019).
Penetrated Mar-
ket
• This is a set of customers or clients who are already using a particular
product or service.
• A penetrated market means that the potential users of a product or
service are aware of it, and in many cases are active consumers of it
(www.businessdictionary.com).
Market Size
The size of a potential market helps a company
understand the level of investment it should make
further in the market, while taking into consideration
other factors.
Market Size
• A market is a place where two parties can gather to facilitate the exchange of goods and services. The
parties involved are usually buyers and sellers.
• The market may be physical like a retail outlet, where people meet face-to-face, or virtual like an on-
line market, where there is no direct physical contact between buyers and sellers (Kenton, W. & Boyle, M.,
2020).
• A market does not refer to a particular place but it refers to a market for a commodity or com-
modities. It refers to an arrangement whereby buyers and sellers come in close contact with each other
directly or indirectly to sell and buy goods (Shaikh, S., retrieved 2020).
• A market is any place where sellers of particular goods or services can meet with buyers of those
goods and services. It creates the potential for a transaction to take place. The buyers must have
something they can offer in exchange for the product to create a successful transaction.
The Market Need
Define the Market Need for your Busi-
ness
Why is it important to clearly define market needs?
The market now demands that your business align to their needs. In order to prop-
erly align your marketing efforts and your content, in particular to what buyers
need, you have to have a clear understanding of the many intricacies, pains and
pressures within your market. To achieve such alignment, you need the ability to
define market patterns, needs, interests, preferences, etc. for a comprehensive view
of the buying process is critical (www.aberdeen.com).
WAYS TO DEFINE YOUR MARKET
(Lancaster SCORE (2010):
Entrep_Q3_Lesson 1: Activity No. 2
A.