Qualified Available Market

Qualified Available Market

It is the overarching term for consumers who are interested in a product, can afford it, and who are not prevented from purchasing by any access barrier or legal restriction. Defining the market is the first step in analyzing it. Identifying who the potential consumers will be is based on the knowledge that needs and wants differ. This is where research and where implementing market segmentation is useful in order to better understand and meet those needs and to select the groups within the market that will realistically respond to a brand, product or service.

Beginning with the total population, it is necessary to identify the different consumer groups. The first group is determined and labeled the Potential market and is the total number of consumers who have interest in acquiring the product. The next group is the  Available market who are those people from the potential market who have the money or financing options to buy the product. And finally the qualified available market is made up of the target group who are legally permitted to buy, own, and use a product.

In most cases, the size of a market is not fixed and can be increased by decreasing the product’s price. In turn, the size of the qualified available market can be increased through fewer restrictions on who can buy the product.

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