Using the chain ratio method described in Appendix 2, estimate the market sales potential for heart catheterization products to meet the needs of the infant and child segment. Assume that of the 40,000 children with heart defects each year, 60 percent will benefit from these types of products and only 50 percent of their families have the financial resources to obtain such treatment. Also assume the average price for a device is $1,000.

Many marketing decisions boil down to numbers. An important question is this: What is the market sales potential in a given segment? If the sales potential in a market is not large enough to warrant pursing that market, then companies will not offer products and services to that market, even though a need may exist. Consider the market segment of infants and children discussed above in Focus on Ethics. Certainly there is a need for medical products to save children’s lives. Still, companies are not pursuing this market.