Download - Market Development Index (MDI)
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MDIMARKET DEVELOPMENT INDEX
Esther van Dokkum | Marketing Strategy |September 2015
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OVERVIEW• Definition
• Calculation• Example• Factors limiting full market development
• Why is it important• Pro / cons• Market information
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DEFENITION• To understand the evolution of a market and to measure a market’s potential for the future grow
• Simply Index ratio of current market demand to market potential
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CALCULATIONDMI Current market demand X100%
Market potential
67> difficult33-67 addressing benefits deficiencies
& reducing prices<33 considerable market grow
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EXAMPLE
Current market demand 250 MILLION X100% =25%Market potential 1000 MILLION
67> difficult33-67addressing benefits deficiencies& reducing prices<33 considerable market grow
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CurrentMarket Demand
Not aware
Not available
Unable to use
Lack benefits
Not affordable
Market potential
CurrentMarket Demand
UntappedMarket
Potential
FACTORS LIMITING FULL MARKET DEVELOPMENT
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WHY IS IT IMPORTANT
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PROS AND CONS
Pro
Indication future grow
Competitive advantage
Information to present to the board
Con
Finding market data
More factors determine market potential
Still need creativity / research to use market potential
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MARKET INFORMATION
MARKETLINE.COM/
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AUTHOR
Esther van DokkumThe NetherlandsIbound Marketeer
Esthervan Dokkum Istherrr Istherrr