ABSTRACT
An important dynamic in determining potential revenue is the expected future size of a market. Large markets are attractive to firms because they usually generate high sales revenue. Additional revenue growth opportunities will exist when the market is forecasted to grow over time. Conversely, markets in late maturity or decline are typically a threat because potential future revenue will probably fall. When examining revenue potential, it is necessary to recognize that markets exist at two levels. The ‘actual’ market consists of those consumers who are currently actively purchasing the products or services on offer. Within the larger ‘potential’ market are both consumers who are active purchasers and those who are prospective buyers, but have yet to enter the actual market and make their first purchase.
