Question 1

With an increase in marketing expenditure, market demand ________.

Accepted Answer

Market demand typically increases at an increasing rate initially due to heightened consumer awareness and interest, but as saturation occurs, the rate of increase slows down, leading to a decreasing rate of growth.

Question 2

The ________ market is the set of consumers who are buying the company's product.

Accepted Answer

The penetrated market refers to the segment of consumers who are already purchasing the company's product, indicating the company has successfully penetrated this portion of the market with its offerings.

Question 3

A company's sales potential would be equal to market potential if ________.

Accepted Answer

The company's sales potential would be equal to the market potential if the company captures 100 percent share of the market, meaning it fully realizes the total demand or potential sales volume in the market.

Question 4

During a recession, the market demand curve, which is a function of marketing expenditure, ________.

Accepted Answer

During a recession, consumers are likely to have lower disposable income and be more price-sensitive. As a result, the market demand curve shifts downward, indicating that consumers are willing to purchase less at any given price.

Question 5

The base sales of an organization that takes place even without any demand-stimulating expenditures is called ________.

Accepted Answer

The base sales of an organization without any demand stimulation is called market minimum, which is the lowest level of sales a company can expect with no marketing efforts. 
Option A, primary demand, refers to the total demand for a product category or service within a particular market at a given time. 
Option B, market potential, is the total achievable market demand for a product or service, assuming all demands within a market environment are fulfilled. 
Option D, optimum demand, is the ideal level of demand that a company wants to achieve with its marketing efforts. 
Option E, market demand, is the total demand for a product or service within a particular market.

Question 6

The ________ market is the part of the qualified available market the company decides to pursue.

Accepted Answer

The target market is the specific group of customers that a company aims to sell its products or services to. This is a strategically chosen segment of the larger qualified available market, based on factors such as demographics, behavior, and needs. The company will tailor its marketing mix (product, price, promotion, and place) to best appeal to this target market to achieve greater success in sales and profitability.

Question 7

A company can expect to expand its market share to a large extent when ________.

Accepted Answer

A low share-penetration index indicates that the company has a smaller share of the potential market, suggesting significant room for growth and expansion in market share.

Question 8

The sales goal set for a product line, company division, or sales representative of an organization is called ________.

Accepted Answer

A sales quota is a specific sales goal set for a product line, company division, or sales representative. A sales budget is a financial plan that outlines expected revenue from sales and the expenses associated with achieving that revenue. A company sales forecast is a prediction of future sales for a specific period. Company sales potential is the maximum amount of sales revenue that a company could generate with the resources it has available. Market potential refers to the maximum sales revenue that could be generated in a particular market.

Question 9

A low market-penetration index indicates ________.

Accepted Answer

A low market-penetration index indicates that there is potential for growth and expansion in the market. This means that there are still untapped or underserved segments of the market, providing opportunities for firms to increase their market share and profits.

Question 10

________ for a product is the total volume that would be bought by a defined customer group in a defined geographical area in a defined time period in a defined marketing environment under a defined marketing program.

Accepted Answer

Market demand refers to the total volume that would be bought by a defined customer group in a defined geographical area in a defined time period in a defined marketing environment under a defined marketing program.

Question 11

The ________ market is the set of consumers with an adequate interest, income, and access to a particular offer.

Accepted Answer

The available market refers to the subset of the potential market where consumers have enough interest, income, and access to actually buy the product, distinguishing it from the broader potential market which might include those interested but lacking in income or access.

Question 12

When the government of any country restricts the sale of a particular commodity to certain groups - for example, restricting sales of alcohol to individuals of age 21 and over - the eligible consumers who have income, interest, access, and qualification constitute the ________ market.

Accepted Answer

The "qualified available market" refers to the segment of the market that meets all the criteria, including legal and other restrictions, to purchase a product.

Question 13

Only one level of industry marketing expenditure will actually occur. The market demand corresponding to this level is called the ________.

Accepted Answer

The market forecast is the expected level of market demand at a given level of industry marketing expenditure.

Question 14

A ________ is a conservative estimate of the expected volume of sales for a business, primarily for making purchasing, production, and cash flow decisions.

Accepted Answer

A sales budget is a conservative estimate of the expected volume of sales for a business, primarily for making purchasing, production, and cash flow decisions. A sales quota is a specific target set for salespeople to achieve, while a company sales forecast and company sales potential refer to overall sales projections for a business. Market potential refers to the total demand for a product or service in a particular market.

Question 15

A ________ is the company's estimated share of market demand at alternative levels of company marketing effort in a given time period.

Accepted Answer

Company demand refers to the amount of a product that a company estimates it can sell in a given market at various levels of its marketing efforts.

Question 16

A ________ is the limit approached by market demand as industry marketing expenditures approach infinity for a given marketing environment.

Accepted Answer

This is the definition of market potential, which is the maximum sales that could be generated by all firms in a particular market during a specific period under a given marketing environment and industry structure. As marketing expenditures increase, the market potential should also increase until it reaches its maximum.

Question 17

A ________ is the sales limit approached by company demand as company marketing effort increases relative to that of competitors.

Accepted Answer

Company sales potential refers to the sales limit approached by company demand as marketing effort increases relative to that of competitors. It represents the maximum sales a company can achieve with its available resources and current market conditions.

Question 18

The distance between the market minimum and the market potential shows the overall ________.

Accepted Answer

The distance between the market minimum (the lowest possible demand for a product) and the market potential (the total possible demand for a product) is a measure of the market's sensitivity to marketing efforts. It shows how much the demand can be influenced by effective marketing strategies.

Question 19

The demand estimates of an organization comprise five space levels: world, country, region, territory, and ________.

Accepted Answer

The missing level in the demand estimates hierarchy is "customer," as it represents the most granular level of demand estimation, focusing on individual customer needs and preferences.

Question 20

Jeanine would like to own a Mercedes but is unable to afford one at this time. Jeanine is part of the ________ market for this product.

Accepted Answer

Jeanine is a potential market for the Mercedes because she is interested in owning one, but is unable to afford it currently. The available market refers to those who can afford and are currently buying the product. The target market is the specific group of consumers that the company is trying to reach and appeal to with their marketing efforts. Projected market refers to the estimated size of the market in the future. Penetrated market describes the portion of the market that has already purchased or uses the product.

Quiz 3: Collecting Information and Forecasting Demand