market development index (mdi)
TRANSCRIPT
MDIMARKET DEVELOPMENT INDEX
Esther van Dokkum | Marketing Strategy |September 2015
OVERVIEW• Definition
• Calculation• Example• Factors limiting full market development
• Why is it important• Pro / cons• Market information
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
CALCULATIONDMI Current market demand X100%
Market potential
67> difficult33-67 addressing benefits deficiencies
& reducing prices<33 considerable market grow
EXAMPLE
Current market demand 250 MILLION X100% =25%Market potential 1000 MILLION
67> difficult33-67addressing benefits deficiencies& reducing prices<33 considerable market grow
CurrentMarket Demand
Not aware
Not available
Unable to use
Lack benefits
Not affordable
Market potential
CurrentMarket Demand
UntappedMarket
Potential
FACTORS LIMITING FULL MARKET DEVELOPMENT
WHY IS IT IMPORTANT
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
MARKET INFORMATION
MARKETLINE.COM/
AUTHOR
Esther van DokkumThe NetherlandsIbound Marketeer
Esthervan Dokkum Istherrr Istherrr