Answer to Question #155889 in Management for Prabhdeep

Question

Differentiate between market potential and sales analysis ?(please provide at least 10 points of difference)

Answer 1

The market potential is the summation of all goods or brands and services in a product category that can be traded in a market. In contrast, sales potential is the total amount of a particular brand sold in a market.

Market potential implies the market’s total size for a product at a particular time, while sales represent the market share.

The Market potential is measured in terms of sales volume or sales value, while sales potential is measured as a percentage of the market potential.

Market potential estimates the upper limit of sales a product can have in a market, while sales potential focus on a specific product sales.

Market potential indicates the market’s vulnerability by focusing on the potential customer base, competition, and the current market environment. At the same time, investors use sales potential to enter the market or not for a product based on profit.