What do you mean by market potential? The core of the market is people, and the characteristics of people constitute the characteristics of the market. Every business outlet will have a hot word, and the word market potential has always been a hot topic in the workplace. So what does the market potential mean?
What does the market potential mean? 1 Market potential refers to the maximum sales volume that can be reasonably achieved within the specified time under given conditions. It means that all products have been completely distributed, and a lot of advertisements and promotions have been made, attracting all customers who may buy products.
Market sales potential is a part of market demand potential. Given the market demand potential, the enterprise's market sales potential depends on the market share, namely:
Market sales potential = market demand potential × market share
Market sales potential is not actual sales (volume), but a possible expected sales (volume). The measurement and research of enterprise marketing potential is beneficial to management decision and rational allocation of resources, helps to determine product objectives and business strategies, and plays an important role in evaluating new products and effectively handling a series of marketing decision-making problems.
influencing factor
There are two factors that affect the market potential, one is the product and the other is the environment. Through the study of these two factors and related factors, we can better grasp the market situation.
Product factor
In terms of product factors, we can study the "4Ps" in marketing: ① product characteristics: taking drugs as an example: such as indications, efficacy, side effects, onset time, etc. 2 channels: such as access to convenience, purchase environment, etc. ; 3 sales promotion: promotion method, personnel promotion effect, etc. ; ④ Price: Is the price too high? Still too low? Can it be reimbursed? What is the reimbursement rate? Wait a minute.
Mainly through the research of these four aspects, we can find out what obvious or potential problems exist in the products and/or competitive products of enterprises, find opportunities from the problems, take measures, and finally achieve the purpose of increasing sales.
environmental factor
Another factor that affects the market potential is the environmental factor, which is complicated, but many marketing enterprises do a good job in the market by grasping or intervening in the environmental factor.
Environmental factors: We divide it into macro environment and micro environment. Macro-environmental research mainly refers to scanning the current situation and development trend of politics, economy, society and technology, and looking for new opportunities to increase market potential.
Micro-environment refers to the specific competitive environment in which the enterprise is located, and the change of this environment has a relatively more intuitive and sensitive impact on the future sales of the enterprise. This specific environment can collect data from existing enterprises and competitors, suppliers, buyers, producers of substitute products and potential entrants for analysis and research.
The role of market potential:
1, which is conducive to the rational allocation of investment or existing resources. Decision makers can allocate resources according to the total market potential of various products, not just relying on the sales level.
2. It is helpful to determine the stages of product life cycle and different product goals and strategies.
3. It is beneficial to determine product objectives, marketing strategies and distribution decisions.
What does the market potential mean? Market potential refers to the most optimistic estimate of the purchase amount of a product in a certain market in a certain period and under certain conditions. Market potential refers to the maximum sales volume that can be reasonably realized within the specified time under given conditions. It refers to the possible sales volume of the product when the product has been completely distributed and a lot of advertisements and promotions have been made to attract all customers who may buy the product.
Hyundai Group, one of the top ten famous cars in the South African market, was heavily in debt in just a few years. The reason is that the group made a mistake in analyzing the potential market in South Africa.
Although South Africa is not a vast country, its domestic infrastructure is advanced, highways extend in all directions and its per capita GNP is considerable. Many large automobile manufacturers in the world regard it as a potential market.
Hyundai Group is no exception. Hyundai Group's estimation of the South African market potential is quite optimistic, because compared with other major competitors, Hyundai Group entered the South African market late. In order to make up for this disadvantage, Hyundai Group launched a fierce advertising campaign at no expense, and also invested 300 million rand to set up an assembly plant in Botswana, a neighboring country of South Africa, to supply South Africa.
A large amount of capital investment in the early stage made Hyundai Group gain good profits quickly in the South African market, and the market sales were gratifying. In the best period of operation, the monthly sales volume was as high as 800 vehicles.
However, after the false prosperity, the truth is highlighted. South Africa's market potential is far below the expectations of Hyundai Group. The huge gap between the rich and the poor makes few people in South Africa really afford cars. Coupled with the sluggish domestic demand, the automobile market soon dried up, and the total automobile sales volume was even lower, which made major automobile manufacturers frown.
For Hyundai Group, this situation makes it miserable. It has been operating in debt since it entered the South African market. What's worse for Hyundai Group is that South Africa changed its previous low tariff policy and raised the loan interest rate of banks, which led to a sharp increase in the production cost of Hyundai Group, and even the embarrassing phenomenon that the more cars were produced, the more serious the losses were.
However, at that time, the decision-makers of Hyundai Group did not give up their illusions about the South African market, thinking that the difficulties were only temporary and the potential of the South African market was still considerable. As a result, Hyundai Group faced difficulties, continued to borrow heavily, and even put forward the strategy of "expanding from South Africa to Southern Africa". However, the market situation is not as good as expected. In the end, Hyundai Group was overwhelmed by the ever-expanding debt and had to declare bankruptcy.
What does the market potential mean? Why do some people say that the sinking market has great potential?
Excavating and releasing the consumption potential of the sinking market is an effective way and means to promote high-quality economic development. To effectively tap and release the consumption potential of the sinking market, it is necessary to adapt to the new characteristics, new trends and new requirements of its innovation and development, and to clarify new ideas and new means. In addition to continuing to improve the income level of residents in the sinking market and improving rural social policies, it is also necessary to closely follow the "four combinations".
Combined with the prominent blocking points and shortcomings faced by the sinking market consumption. We should not only focus on expanding commodity consumption, but also focus on the shortcomings of consumption infrastructure, and strengthen the construction of infrastructure and service systems such as transportation and communication, charging and refueling, maintenance, logistics and distribution in the sinking market.
Focusing on improving the quality of life, we will accelerate the improvement of diversified and integrated commercial facilities and consumption scenarios that meet the consumption needs of small towns and rural areas. Improve the ability to protect consumer services and effectively protect the rights and interests of sinking markets, especially rural consumers. In the long run, fundamentally optimize the consumption facilities, improve the supporting system, enhance the consumption experience and increase the willingness to consume.
Combined with the new trend and new requirements of upgrading the consumption structure of residents in the sinking market. On the whole, the consumption level of the sinking market has shifted from "whether there is" to "whether it is good". Actively expand the "one less and one older" consumer market, that is, expand the consumption of quality, brand, intelligence and service of different income groups and promote the consumption of "new domestic products";
Expand the consumption upgrade of the elderly and provide easy-to-operate and practical consumer goods. We will continue to develop new modes such as online shopping, mobile payment and Internet travel, and develop healthily in the sinking market. Adapt to the growing consumer demand for medical care, education, pension, culture, tourism, housekeeping and other services in the sinking market, and constantly optimize and adapt to the supply of different groups and levels.
Combine the coordinated interaction of urban and rural consumption. The continuous expansion of consumption in the sinking market needs the two-way flow of population and factors between urban and rural areas as a support. The consumption of sinking market is not only the consumption of local residents, but also the consumption of urban residents in sinking market is an important part.
Focusing on the reform of factor market and the construction of supporting system, supported by the construction of modern circulation system, we will break through the obstacles of two-way interaction between urban and rural consumption, enhance their respective consumption functions, enhance the traction of consumption on investment, and accelerate the construction of an integrated and mutually supportive domestic demand system between urban and rural areas.
Combined with the development requirements of simplicity, moderation, green and health. Reducing carbon in sinking market is an important support for China to achieve the goal of "double carbon", and a green, healthy, simple and moderate lifestyle should be encouraged and advocated. Build a fiscal and taxation system that adapts to the development of green consumption, and explore the extension of carbon footprint accounting and trading from production to consumption.
Encourage the promotion of energy-saving and environmentally-friendly low-carbon products such as green buildings and new energy vehicles, and explore extending relevant subsidies from the purchase link to the use link. Promote green products and green consumption to achieve full life cycle and full category coverage, and explore relevant preferential support policies to expand from commodity areas to service areas such as travel.
What do you mean by market sinking?
The so-called sinking market usually refers to the markets in cities, counties, towns and rural areas below the third line. Its population scale and consumption scale are very large, and the retail sales of social consumer goods, online shopping market scale and mobile payment amount are growing rapidly, which has become increasingly prominent in China's consumer market.
Taking the consumption of new energy vehicles as an example, in 20021year, China's new energy vehicles became the highlight and new growth point of residents' bulk consumption, and the sales volume increased by 1.6 times year-on-year. Among them, the sinking market contributed about 47% of the sales volume, which is the fastest growing market segment with the greatest potential.