Electronic Medical Records Market Share, Size, Trends, Growth, Demand and Forecast Till 2025
Chapter Three Market Potential, Market Demand, and Market Share.
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Chapter Three Market Potential, Market Demand, and Market Share
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Transcript of Chapter Three Market Potential, Market Demand, and Market Share.
Chapter Three
Market Potential, Market Demand, and
Market Share
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 3-2
Market Potential, Market Demand, and Market Share
• Market definition
• Market potential
• Market development index
• Managing market growth
• Product-market vs. product life cycle
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 3-3
Benefits of a Broad Market Definition
• Reveals new opportunities in light of a broader set of customer needs
• Enables management to recognize potential substitutes and competitive threats
• Provides management with a thorough understanding of fundamental customer needs
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 3-4
Estimating Market Potential
Market Potential = 4 billion potential x 35% buying ceiling = 1.4 billion users
Figure 3-5 Estimating Market Potential — Personal Computer
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 3-5
Market Development Index
• MDI = Current Market Demand
Market Potential
• Low MDI– Untapped market potential
X 100%
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 3-6
Factors Limiting Full Market Development
Figure 3-7 Factors Limiting Full Market Development
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 3-7
Market Potential and Market Growth
• Forces affecting rate of market growth– Market potential– Market penetration– Rate of entry
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 3-8
Managing Market Growth
• Major Customer Groups:– Innovators– Early adopters– Early majority– Late majority– Laggards
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 3-9
Managing Market Growth
Figure 3-8 Customer Entry and Market Development
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 3-10
Accelerating Market Growth
Figure 3-10 Customer and Product Forces Driving Market Growth
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 3-11
Life-Cycle Demand, Margins, and Marketing ExpensesFigure 3-16 Life-Cycle Demand, Margins, and Marketing Expenses
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 3-12
Market Share Metrics
Figure 3-18 Market Share Metrics and Share Development Path
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 3-13
Market Share Metrics
• Market Share Index (MSI) = Product X Product X Price X Product X Service Awareness Preference Acceptability Availability Experience
• Share Development Index (SDI) = Market Share Index Share Index Potential
X 100
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 3-14
Managing Growth Potential
Figure 3-20 Managing a Business’s Growth Potential
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 3-15
Review
• Market definition
• Market potential
• Market development index
• Managing market growth
• Product-market vs. product life cycle
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 3-16
• Figure 2-8 Sante Fe Sportswear
• Profits and Marketing Profitability
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
Copyright © 2009 Pearson Education, Inc. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice HallPublishing as Prentice Hall
