Question

Misaki, a sales manager at a startup cosmetics company, wants to determine her company’s market potential. She first develops a general economic forecast for a specific time period. Next, she estimates market potential based on this forecast. Finally, she derives the company’s sales potential from the forecast and an estimate of market potential. What type of approach is misaki using?.

Answer 1

The type of approach Misaki is using to determine her company's market potential is the breakdown approach, used to determine the size of sales forces needed in a company.

Breakdown approach

Corresponds to a method used to identify an organization's sales force, through projections for future sales and past sales history.

Therefore, in the breakdown approach, the total sales value identified by the sales projection is divided by the sales generated by each sales professional, assuming that each one reaches the same level of productivity.

The correct answer is:

• Breakdown approach

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