Question

Explain the difference between market potential and market growth. Name a market that you believe has untapped potential for growth. What are some ways to take advantage of that potential?

Answer 1

The market potential is the entire size of the market for a specific product. It represents the upper limit of the market for a product. Market potential can be measured by the sales volume generated.

The market growth helps to evaluate the performance of a product within a market. Sometimes the marketeers organise promotional campaigns simply to increase the market growth of a particular product.

Harley Davidson supplies bikes to the international markets of Europe, Asia . They believe that these international markets are untapped and there is a high potential for growth in these markets.

They believe that they could take an advantage of these untapped markets by increasing the number of dealers and increasing production. They have only been able to capture 25% of these markets and these markets have a long term opportunity for the manufacturers of Harley.