A potential market is the sector of the market that you can gain in the future. People may not be buying from you at this time, but could potentially become customers. This audience might buy future products that are not made yet or buy improved products that may be branded more effectively in the future.
Identify your current audience within the potential market. Look outside of your current audience you may look at expanding the group that you already sell to, or find a new customer group that you never considered before.
It’s a good idea to identify the mediums where you can have the greatest effect on both finding and attracting your audience.
Here are three simple ways to identify potential market opportunities:
- Check your numbers. Explore the history of popular search-engine queries related to your business, but for products or services that you don’t sell at this time.
- Understand where your new audience “lives.” Use data from the US Census Bureau to identify the demographics to define your target audience. This understanding helps you understand your consumers and to see if a specific market would help you benefit from promotions.
- Understand the mindset of the generation you’re trying to attract. See what motivates either a younger or older audience to include them as part of your audience. Think of how your business practices could attract the audiences you want.
Exploring new markets will help your business grow. Business owners must be able to focus on their new venture without neglecting their core business. Stay in control of everything without spreading your resources too thin.
In 2011, John Bentley launched his Lancashire-based portrait and landscape photography business FourTwoGraphs. He soon discovered that he was entering a crowded marketplace. “Photography is a very competitive local business, and I realized that to become better established I needed to do something different, and the answer to what that came from my customers,” John explained.
Diversification can open up entirely new market potentials but can be costly. Explore new markets and target customers who may not engage with your brand. Ignoring this group could be a costly exercise.
Market potential and opportunity can give your business the chance to grow and expand, but only if your team appreciates the focus and understanding of that potential.