Question

One key difference between a company's sales forecast and this firm's sales potential is that:

Select one:

A. The sales forecast is an estimate of sales the firm expects to make under a proposed marketing plan.

B. The sales potential must be determined first.

C. The sales potential covers the company's entire market, while the forecast is made for individual market segments.

D. The sales forecast is usually a larger figure.

E. The sales potential assumes that a certain strategic plan exists.

Answer 1

The correct answer is

A. The sales forecast is an estimate of sales the firm expects to make under a proposed marketing plan

Sales forecast is what sales level the company expects to achieve from a proposed marketing plan where as sales potential is how much is the total potential customer out to which the product can be sold. Sales forecast is normally lower than sales potential. It is not necessary that sales potential has to be determined because sales potential is very difficult to determine. Sales forecast assumes there is a strategic plan.