Difference Between Market and Potential Market

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As a newbies entrepreneur, sometimes I think that consumers will like my product or service. My positive thoughts are of course good, but that was not enough. I am too focused on usability of goods and services that I sell both in terms of usability and price I offer. Because of great usefulness and the price is relatively cheap, I think consumers will like my products and services. And I ignore my target consumers who want to go.

Because if I think like that, its market share is too large. That's a problem. Many companies are too confident in their product that ultimately failed to reach the market. Although it has been doing large-scale promotion, but still failed too. Yup ... this is where we need to know the potential market for the product or service that we wish to sell.

All people who love our product or service is not necessarily buy at our place. Markets different with potential market. Everyone will need a motor vehicle, but they choice must be Honda? Not necessarily. Everyone who takes a motor vehicle is the market. As for they who need a Honda motor vehicle is a potential market. So obviously the difference.



If I'm selling is a website design service. All persons or agencies who need a website is the market. So who is the potential market for me? Of course most of the market is willing to spend money to make a website.


In conclusion, market is consumer who is going to need your products or services that we offer, while potential market are those who need our product and also have enough financial condition to buy it. More clearer our potential market, more better we can setting price and increase sales. Certainly this can not be separated from segmentation, targeting and positioning problem.

Honestly, I find it difficult to make an example that is easy to understand about difference between  market and potential market. Can you give another example, in order to more easily understood?

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