Identifying Opportunity in New Potential Markets
Potential markets are the most important part of a business's future growth. A potential market is a group of consumers that show some level of interest in a market offer.
You might be very happy with the sales and performance you have today, but that does not mean that you have enough potential markets for the future. You can change this by making a decision to focus on the potential market of your business.
By focusing on the potential market, you are not increasing your market share for today; you are ensuring your market share will increase for the future.
What is a Potential Market?
A potential market is the part of the market you can capture in the future. It includes all of the people that are not buying from you today but could potentially become customers. They might buy new products you have not made yet, or they might buy products that you will improve or market or brand more effectively later.
How Do You Identify a Potential Market?
You have to identify the potential market with your current audience. To do this, you must go outside the current audience and look for people who are a certain age, certain sex, and certain socioeconomic status and examine their certain needs. You might look at expanding the groups of people you already sell to, or you might find a new customer group that you never considered before.
For example, a company that only sells to the 35-55 age group might start selling to the 18-34 group with a new or upgraded product.
What Is the Potential Market's Purpose?
The potential market is something that you can look forward to in the future, and it is a market that will surely make your future money if you are focused on it.
However, you cannot make any money without a focus, and you are going to have to think very hard about this market. It is essential that you set new goals for the future. You can sit on your current sales, but that does nothing for the future. Understanding the potential market proves that you have a future.
How Many Types of Potential Markets Are There?
There are infinite types of potential markets. You will find one every time you come up with a new type of customer that you want to sell to, and you need to make sure that you have thought of all of them before you move forward. Sit down with your team and consider every type of person who would buy from you, and do not leave anyone out. While you are going to focus on the largest groups, you will still try to catch the smaller ones.
How Long Does It Take to Find Potential Markets?
You need to spend a vast amount of time looking for potential markets for all your products, and you need to keep looking for new markets every year. You can create great products that grab a potential market, but you still need to think about what the next product is going to be. Keep searching with your team so that you do not miss anyone, and there will come a time when you have tapped every target market you've identified.
What Are the Steps to Reaching Your Potential Markets Once You've Found Them?
Obviously, once you've identified a potential market the key will be to get the right message to the right person at the right time.
Once you've identified them, you'll also need to identify how you can create a connection with them. For example, what are common demographics that can help you identify where you will find them?
Now that you have those two things in mind, messaging and how to create a connection you have to tailor your marketing to that potential market. It requires using not only the right messaging but the right marketing channels and media. You'll also want to identify your marketing budget to ensure that it has the most impact. Tapping into new potential markets requires a lot of thorough and planning.