Question

Distinguish between market potential and sales potential

Answer 1

Market potential is the total sales or total potential sales of all players in the industry in the defined geographical area during a certain period of time. Sales Potential is an figure indicating the maximum or total sales from all prospective buyers of the product.

Answer 2

Market potential is the entire size of the market for a product at a specific time. It represents the upper limits of the market for a product. Market potential is usually measured either by sales value or sales volume. For example, the market potential for ten speed bicycles may be worth 2,000,000 in sales each year.

Sales Potential is an figure indicating the maximum or total sales from all prospective buyers of the product. Market potential is a marketing exercise which estimates the maximumpotential a product can have.Sales potential is generally a percentage of the total market potential

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