Sales potential

It refers to the sales limit approached by company demand as company-marketing effort increases relative to that of competitors. The absolute of company demand is, of course, the market potential. The two would be equal if the company got 100 percent of the market. In most cases, company sales potential is less than the market potential, even when company marketing expenditures increase considerably, relative to competitors’. The basic reason is that each competitor is also making its own marketing effort and has a set of hard-core brand loyals.