A Company's Sales Potential Would Be Equal to Market Potential

question 49

Multiple Choice

A company's sales potential would be equal to market potential if ________.

• A) the marketing expenditure of the company is reduced to zero
• B) industry marketing expenditures approach infinity for a given marketing environment
• C) the market is non expansible
• D) market minimum is equal to market potential
• E) the company gets 100 percent share of the market

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Definitions:

Substitute Goods

Goods or services that serve as alternatives to each other, where a rise in the cost of one results in a higher demand for the other.

Complementary Goods

Products or services that are used together, where the increase in demand for one leads to an increase in demand for the other.

Natural Gas

A fossil fuel composed mostly of methane, used as a source of energy for heating, cooking, and electricity generation, as well as a feedstock for chemical manufacturing.

Complementary Goods

Goods or services that are frequently utilized in conjunction with each other, leading to a scenario where the desire for one boosts the desire for the other.