Question

Using the breakdown approach to sales potential, estimates are made

a) by referring to specific geographic factors.
b) by establishing levels of marketing effort that will be required to achieve specific levels of sales.
c) without reference to industry marketing efforts.
d) without reference to general economic conditions.
e) by starting with general economic conditions.

Answer 1

The breakdown approach to sales potential involves considering both general economic conditions and specific geographic factors to estimate sales potential.

Step-by-step explanation:

The breakdown approach to sales potential involves estimating sales potential by starting with general economic conditions. This means that economic factors such as GDP growth, inflation, and interest rates are taken into consideration when making sales projections. By understanding the overall economic environment, businesses can assess the potential demand for their products or services.

Additionally, estimates can also be made by referring to specific geographic factors. This involves considering factors such as population size, demographic trends, and competition in specific locations. Understanding the local market dynamics can help businesses tailor their marketing and sales strategies.

Overall, the breakdown approach to sales potential combines both general economic conditions and specific geographic factors to provide a comprehensive estimate of sales potential.