Question

Dimension on which the market potential of a product is studied

Answer 1

Market potential is usually measured either by sales value or sales volume. For example, the market potential for ten speed bicycles may be worth $5,000,000 in sales each year. On the other hand, the market potential for motorcycles may be 500,000 units each year, which is a measure of sales volume rather than sales value. Keep in mind that market potential is just a snapshot in time. It's a fluid number that changes with the economic environment. For example, rising and falling interest rates will affect the demand for products that are typically financed, like cars and houses.