Market potential and sales forecasting

An important step in market analysis is to make quantitative estimate of buyer demand for the product or service.the first estimate of great interest is the market potential, which is the maximum monetary (naira) or volume (units) sales of a product or service available to all suppliers withine a specified future time period. This is a theoretical concept that defines the upper limit to sales under the most intense marketing effort by the industry. For example, suppose a durable good in being introduced into a market area for the first time, and there are 50,000 potential buyers, then the market potential is 50,000 units in the first year. Suppose now that 10,000 unit were sold in the first year, the untapped potential for the second year would be 40,000 unit, if the number of potential buyers is not itself growing.