Dictionary of Marketing Terms: total market potential
total market potential
calculation of the greatest amount of potential sales of a particular product in that product industry in a specific time period. The total market potential is calculated by multiplying the number of buyers in the market by the quantity purchased by the average buyer, by the price of one unit of the product. For example, if there are one million potential buyers of a particular product in the market and the average buyer buys four units each year at a price of one dollar per unit, the total market potential for that product for the year is one million times four, times one, or four million. Total market potential may be stated in dollars or units.
