Chapter #3: Market Potential, Market Demand and Market Share Flashcards
What is a major cause of missed market opportunities and the greatest threat to business survival?
A narrow focus on existing product markets
Why do we estimate a market space and market potential?
- View demand beyond existing
- Recognise emerging MKT opportunities
- Identify gaps
- Identify similar markets
What is the definition of a “narrow market”?
A market adopted by design - smashing a niche (not always a limitation but a better assessment)
Why is it important to assess market demand?
To understand the number of units that can be consumed and identify the saturation point (once reaching saturation, new customers become hard to find)
What are the 3 types of innovation?
Continuous
Disruptive
Discontinuous
What is continuous innovation?
The development of technology and improved products for a given market
What s disruptive innovation?
Change along the technology innovation curve that allows for the development of new products that are less expensive, smaller or easier to use
What is discontinuous innovation?
A major shift from an old technology to a new technology that usually offers new customer benefits
Once new technology reaches a tipping point, it develops more rapidly through ___________.
Continuous innovation
Which markets tend to be well below their market demand potential?
New and global markets (mass scale, many customers to attempt to saturate)
What are the 7 major forces that restrict a product from realising its market potential?
- Unaffordable
- Unrecognised need
- Lack of awareness
- Lacks desired performance
- Customers lack skills to use
- Insufficient infrastructure
- Unavailability
What 3 forces affect the rate of market growth?
Market potential
Market penetration
Rate of entry
What are some other forces affect market growth rate ?
Customer (need, risk, buying, observation, trial)
Product (advantages, affordability, ease of use, performance, availability)
Products/services with weak overall scores for customer forces and product forces experience ____________.
Very slow market growth
When customer forces and product forces are strong overall ___________.
Steady market growth can be achieved.