Question

Which of the following factors must you judge to estimate the market potential?
(A) Present Market Demand
(B) Export Market Demand
(C) Future Market Demand
(D) Labour Demand
(E) Retailer's Consumption Preferences
Choose the correct answer from the options given below:

• A. (B), (C) and (D) only
• B. (A), (B) and (D) only
• C. (A), (B) and (C) only
• D. (B), (D) and (E) only

Answer 1

The Correct Option is C

To estimate market potential, it is crucial to assess various factors related to both the current and future outlook of the market. Let's evaluate each option to determine which factors are essential in judging market potential:

1. Present Market Demand: Understanding the current demand is fundamental as it gives a baseline for market size and consumption patterns. It helps identify the immediate potential of the market.
2. Export Market Demand: This factor is important as it indicates the potential to expand beyond domestic markets, tapping into international demand and increasing market potential.
3. Future Market Demand: Anticipating the future demand is crucial for long-term planning and growth strategy. It helps in forecasting trends and preparing for market shifts.
4. Labour Demand: While labor demand is critical for operational and production planning, it is not directly a factor in estimating market potential, which focuses on product or service demand.
5. Retailer's Consumption Preferences: This is more about understanding distribution channels and retailer behavior rather than directly assessing market size or potential.

From the analysis, the most relevant factors for estimating market potential are:

• (A) Present Market Demand
• (B) Export Market Demand
• (C) Future Market Demand

Thus, the correct answer is: (A), (B) and (C) only.