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