Is it better to specialize in a served market and a qualified available market or to adapt to a broader range of clients in order to survive in the future media landscape?
Is it better to specialize in a served market and a qualified available market or to adapt to a broader range of clients in order to survive in the future media landscape?
"Served market" and "qualified available market are terms often used in business and marketing to describe certain market segments. Understanding these terms is important so that businesses can effectively market their business and develop strategies to reach potential customers.
Served Market:
A service business is part of the overall economy in which a business or enterprise currently operates or has been carried out. This represents the customers to whom the company currently provides products or services. This is a sector of activity in which the company is directly involved. For example, if a company sells the best phones and has sold 10,000 units in a region, those 10,000 customers constitute the company's market share in that region.
Qualified Available Market (QAM):
Qualifying market capacity (QAM) is the portion of the total or “available” market in which the company can perform well according to specific criteria. This represents the portion of the overall business that matches the company's capabilities, products, and business focus. Most businesses define the appropriate market by analyzing various factors such as demographics, buying habits, geographic location, industry, etc. This analysis helps determine the specific markets most likely to be interested in the company's products or services. For example, if a company sells project management software to small and medium-sized businesses in North America, the appropriate business for the company would be part of the North American company that sells to interested small businesses.
Understanding the markets served and suitable for businesses helps businesses make decisions regarding market entry, sales, marketing strategies and allocate resources. This allows businesses to focus their efforts on reaching the right audience and maximizing business potential in specific markets.
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