Question

The Clean ’n Green recycling company identified 150 apartment complexes (worth~$500K annually in potential contracts) that don’t offer recycling for tenants even though tenants have requested the service. A recent change in city laws mandates that large apartment complexes must recycle. The city is offering a subsidy to cover the first two years of a recycling service to ensure the law can be met. Clean ’n Green has not contacted the complex owners yet. Which one of the criteria for defining a potential market is missing from this analysis?

Answer 1

an organization has the ability to pay for the service

Step-by-step explanation:

Potential markets are defined as business opportunities that can be captured in the future. For example of a company plans to expand its product offerings to a new segment of customers, the new set of customers are it's potential market.

Criteria for potential market includes: substantial number of customers, ability to pay for a service, identifiable and measurable, and accessibility.

In this scenario Clean ’n Green recycling don’t offer recycling for tenants even though tenants have requested the service, and recent change in city laws mandates that large apartment complexes must recycle.

The organisation is not meeting the criteria of having the ability to pay for the service.