market potential


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Related to market potential: sales potential

market potential

the total size of the MARKET for a product at a given time, measured in either volume or value terms. A single seller's share of the market potential will depend upon its MARKETING effort. However, the cumulative marketing efforts of all sellers can serve to expand market potential over time.

Changes in the broader economic environment can affect market potential. For example, a rise in interest rates will decrease the total DEMAND for certain electrical goods.