Analyzing your market

…Analyzing a market means estimating how many potential customers you might be…able to sell your products and services to.…When analyzing any market, you want to group customers into four types.…First are the customers that already buy from you.…In fact, not only do they buy from you,…they buy exclusively from you, and never from a competitor.…The second group is similar to the first group in that they currently buy your…products and services.…The difference is these customers also buy products from your competitors.…

Why?…That's because for some categories of products, customers want choices.…The clothing market is a good example.…You almost certainly buy your clothes from many different manufacturers of clothes.…The market for food is another example.…The third group of customers are those that buy solely from your competitors, and…never from you.…At least not yet.…And finally, the fourth group of customers are those that don't buy your type of…product from anyone.…We call them non-category users.…

These potential customers are important,…