Question 1

Market demand 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 for a product refers to the total volume that would be bought by a specific customer group within a designated area during a specific time frame under a particular marketing program.

Question 2

Suppose the brand development index of the detergent manufactured by Fasclean in Boston is 90 and in Austin is 48. Compare the marketing opportunity of Fasclean detergent in the two cities.

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The answer of Suppose the brand development index of the...

Question 3

Forecasting is the art of anticipating what buyers are likely to do under a given set of conditions.

Accepted Answer

Forecasting involves predicting future demands and behaviors of customers based on certain variables and conditions.

Question 4

If the ratio between current and potential levels of market demand is close to one, what can you infer about the industry's market-penetration index and the growth potential of the firms in the industry?

Accepted Answer

The answer of If the ratio between current and potential...

Question 5

Simpsons, a manufacturer of air conditioners, finds that its sales potential is less than its market potential even when it spends a sufficient amount on advertisements and after sale services. What is the basic reason behind such an observation by the marketers of Simpsons?

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The answer of Simpsons, a manufacturer of air conditioners, finds...

Question 6

Suppose a cotton-textile company wants to estimate the area market potential for its high quality fabrics in Houston. List the possible steps that the marketers will follow to compute the area market potential.

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The answer of Suppose a cotton-textile company wants to estimate...

Question 7

Suppose 100 million people consume black tea every year, and an average consumer consumes 8 kgs of tea at an average price of $3 per kg. Compute the total market potential for tea.

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The answer of Suppose 100 million people consume black tea...

Question 8

What does total market potential mean? How can it be estimated?

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The answer of What does total market potential mean? How...

Question 9

Sales reps might have better insight into developing trends than any other group, and forecasting might give them greater confidence in their sales quotas and more incentive to achieve them.

Accepted Answer

Sales reps are in direct contact with customers and have a deep understanding of their needs and preferences. This puts them in a favorable position to identify and analyze emerging trends in the market. Forecasting can help sales reps make more accurate predictions about future sales, giving them confidence in their quotas and motivating them to reach their targets.

Question 10

Suppose Redbus, a player in the small car market, is planning to launch its new range of hybrid cars. It decides to estimate the future demand for its new car before launching it in the market. If interviewing consumers is not practical, what alternative technique might it resort to?

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The answer of Suppose Redbus, a player in the small...

Question 11

Suppose the Belgian government prohibits sale of cigarettes to people below 20 years of age. Who are likely to comprise the qualified available market for Dunhill, a manufacturer of herbal cigarettes in Belgium?

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The answer of Suppose the Belgian government prohibits sale of...

Question 12

How does the marketing environment determine the position of the market demand function?

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The answer of How does the marketing environment determine the...

Question 13

Briefly describe the methods of forecasting future demand on the basis of past sales.

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The answer of Briefly describe the methods of forecasting future...

Question 14

Two major methods of computing area market potential are market build-up method and multiple factor-index method. Which of these methods will Nexus Enterprises, a manufacturer of auto parts implement to estimate its market potential?

Accepted Answer

The answer of Two major methods of computing area market...

Question 15

In order to estimate future demand, companies commonly prepare a company sales forecast first, followed by an industry forecast, and finally a macroeconomic forecast.

Accepted Answer

Companies typically start with a macroeconomic forecast to understand the overall economic environment, then an industry forecast to gauge sector-specific trends, and finally, they prepare a company sales forecast to predict their own sales based on broader economic and industry insights.

Question 16

Companies assume that the lower the product-penetration percentage, the lower will be the market potential.

Accepted Answer

Companies often view a lower product-penetration percentage as an indication of higher market potential, suggesting that there are more customers in the market who could be reached or who have yet to purchase the product.

Question 17

Organix Internationals LLC is planning to introduce its new range of breakfast cereals. List the different product levels that it considers while formulating the demand estimates for the new product.

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The answer of Organix Internationals LLC is planning to introduce...

Question 18

The market forecast shows expected market demand, not maximum market demand.

Accepted Answer

The market forecast provides an estimate of the likely demand for a product or service, based on various factors such as consumer trends, competitor analysis, and economic conditions. It is not a guarantee of the maximum possible demand for that product or service.

Quiz 3: Collecting Information and Forecasting Demand