Question

Refer to Scenario 5.4. Suppose a sales manager at Mistine wants to determine the company's market potential. She first estimates how many cosmetic products potential buyers will purchase in her sales territory during a given period. She multiples that amount by the total number of potential in that area and then performs the same calculations in the other territories in which Mistine operates. She then adds together the totals to get the company's market potential. What type of approach is the sales manager using?
a. buildup approachb. cost estimatesc. executive judgmentd. breakdown approache. competitive assessment

Answer 1

Answer: Build up approach

     

Explanation: In simple words, build up approach refers to an approach in which the managers before initiating a marketing program tries to understand  the number of potential customer in the market along with their purchase requirements and purchasing power.

In the given case, Mistine evaluated the market for cosmetic products by evaluating the market potential.

Hence we can conclude that she is using build up approach.