The 2005 United States Economic and Product Market Databook - ISBN:0497012723

The 2005 United States Economic and Product Market Databook

Date: 13 April 2011, 02:30

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Product Description: Market Potential Estimation Methodology
Overview
This study covers the outlook products in United States. For the year reported, estimates are given for the latent demand, or potential industry earnings (P.I.E.), for the United States (in millions of U.S. dollars). Comparative benchmarks allow the reader to quickly gauge United States vis-a-vis regional and global totals. Using econometric models which project fundamental economic dynamics within each country and across countries, latent demand estimates are created. This report does not discuss the specific players in the market serving the latent demand, nor specific details at the product level. The study also does not consider short-term cyclicalities that might affect realized sales. The study, therefore, is strategic in nature, taking an aggregate and long-run view, irrespective of the players or products involved.
This study does not report actual sales data, but gives, however, my estimates for the latent demand for products and services in United States. For each category, I also show my estimates of how the P.I.E. grows over time (positive or negative growth). In order to make these estimates, a multi-stage methodology was employed that is often taught in courses on international strategic planning at graduate schools of business.
What is Latent Demand and the P.I.E.?
The concept of latent demand is rather subtle. The term latent typically refers to something that is dormant, not observable or not yet realized. Demand is the notion of an economic quantity that a target population or market requires under different assumptions of price, quality, and distribution, among other factors. Latent demand, therefore, is commonly defined by economists as the industry earnings of a market when that market becomes accessible and attractive to serve by competing firms. It is a measure, therefore, of potential industry earnings (P.I.E.) or total revenues (not prof

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