Redefining Market Potential: Definitions, Dimensions, and Index
(A2025-125920)

AUTHORS

Alina Fonseca Flores, Federal University of Rio Grande do Sul; Jaiany Rocha Trindade, Federal University of Rio Grande do Sul; Carla Freitas Silveira Netto, ASSOCIAÇÃO PARANAENSE DE CULTURA - APC - Pontifical Catholic University of Paraná (PUCPR); Vinicius Brei, Federal University of Rio Grande do Sul

ABSTRACT

Market potential is a core construct in marketing literature, guiding decisions on location, demand concentration, and market expansion. Despite its importance, it remains frequently confused with sales and demand forecasting. This study addresses these gaps through a systematic literature review. We propose a definition of market potential that emphasizes demand, spatial dimensions, and temporal context. We identify its four core dimensions—demography, economy, market characteristics, and geography—and discuss their application in the literature. Next, we introduce a comprehensive Market Potential Index (MPI) framework that integrates multiple dimensions to enhance academic research and strategic decision-making. This work advances marketing theory by clarifying a foundational construct and suggesting a research agenda to refine MPI applications across diverse contexts.