There are several methods for assessing market potential. Which of these methods do business marketers prefer?
A) purchase-profitability index
B) multiple-factor index method
C) brand-development index method
D) market-buildup method
E) market-test index

Question

Quizplus · Accepted Answer

Business marketers typically prefer the market-buildup method for assessing market potential. This approach involves estimating the total market demand by combining data from various sources, such as demographic data, industry reports, and economic indicators. The resulting estimate can then be used to determine the potential size of the target market and inform decisions about product development, pricing, and marketing strategies. Other methods mentioned, such as the purchase-profitability index and brand-development index, are typically used in consumer marketing rather than business marketing. The multiple-factor index and market-test index are also used in business marketing, but are less commonly used for assessing market potential.

There Are Several Methods for Assessing Market Potential