Click here for instant contact with one of the 24 people who know about this topic

Total market potential

certified ManagementGoeroes expert badge
1 min read

The total market potential is the maximum turnover that is available to all companies in an industry during a fixed period. Considering that the level of marketing and environmental factors are fixed. A common way to calculate the total market potential is using the following formula as follows:

MP = NxQxP

  • MP = the total market potential
  • N = the number of buyers in a specific product / market with fixed assumptions
  • Q = number of products purchased by an average buyer
  • P = price of an average product

So if 100 million people buy a book every year, and the average buyer buys three books a year, and the average price of a book is ten dollars, then the total market potential for books is three billion dollars.

(source: Free translation to Philip Kotler, Marketing Management, 1997. P. 135.)

Share this article

Related articles

Show more

Popular articles

Show more

Latest Articles

Show more
Direct contact with a business coach
Rick De Vlieger
Rick De Vlieger
US$ 2,86 pm
Online marketeer
I'm the ONE Who knows about management & online marketing strategy.
Andrea Gaeta
Andrea Gaeta
US$ 0,61 pm
I'm the ONE who brings your products and services to Italy
Merijn Kegel
Merijn Kegel
US$ 6,88 pm
Serial Entrepreneur
I'm the ONE I’m the ONE that can improve & maximise business results with online marketing.
Clodiane Norline
Clodiane Norline
US$ 0,33 pm
Social Media Leader
I'm the ONE to provide optimal service for all your business inquiries.
Kiera Hartl
Kiera Hartl
US$ 0,25 pm
ESL Teacher/Marketer
I'm the ONE I'm the jack of all trades. Professional ESL teacher, marketer, cooking, makeup.