Terms Potential Market the set of consumers who profess som

Terms:

Potential Market – the set of consumers who profess some level of interest in a defined market offer Mass Market – the set of consumers who profess some level of interest in and have the requisite income to a defined market offer Available Market – the set of consumers with the interest, requisite income and access to a defined market

Qualified Available Market – the set of consumers with the interest, requisite income, access and qualifications for a defined market offer offer

Honda Ltd. of Japan is reviewing the motorcycle market of a Mid-Pacific island. A recent study revealed twenty percent (20%) of the island\'s 1,000,000 population exhibited an interest in owning a motorcycle. Of those interested, only fifty percent (50%) have the requisite income to purchase a Honda motorcycle. Three (3) Honda dealerships provide the island’s entire population with access to the defined market offer. However, twenty-five percent (25%) of the interested individuals with the requisite income and access to the defined market offer do not meet the island\'s minimum license age requirement of eighteen (18) years of age.

Calculate the number, not percentage, of the people in each of the following levels of market definition. (Show calculations)

a. Potential Market

b. Mass Market

c. Available Market

d. Qualified Available Market

Solution

a) Potential Market

1,000,000 *20/100= 200,000 people

b)Mass Market

200,000 people * 50 / 100 = 100,000 people

c) Available Market

1,000,000 people Entire Island population

d) Qualified Available Market

1,000,000 people Entire Island population * 75/100

=750,000

25% people are not eligible regarding of age.

100 - 25=75 qualified

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