2006-12-12 04:52:01 · 3 answers · asked by sab_msu 1 in Business & Finance ➔ Advertising & Marketing ➔ Other - Advertising & Marketing
they are just what they say they are.
Market potential the maximum market for the product. Lets say you sell widgets for $1 each. There are 1,000 customers in your market area each has the potential of buying 2. Your market potential is 2 X $1,000 X $1 = $2000.
The reality is you are not going to sell to everyone. Lets say only 1 out of 4 actually buys your product. Your probablity then is 2 X 250 X $1 = $500
The 250 is 1/4 of the 1000. The customers still buy 2 each time and they still sell for $1 each.
Hope that helps
2006-12-12 05:02:14 · answer #1 · answered by Jim7368 3 · 0⤊ 0⤋
Adding to Kotler's and Norris' definitions, a response from the Chartered Institute of Marketing (CIM)' 's definition claims marketing to be the "management process of anticipating, identifying and satisfying customer requirements profitably". Thus, operative marketing involves the processes of market research, market segmentation, new product development, product life cycle management, pricing, channel management as well as promotion.
Market potential is defined as
An estimate of the maximum possible sales of a commodity, a group of commodities, or a service for an entire industry in a market during a stated period.
OR
The maximum achievable combined sales volume for all sellers of a specific product during a specific time period, in a specific market.
Probability is defined as
1. The quality or condition of being probable; likelihood.
2. A probable situation, condition, or event: Her election is a clear probability.
3. The likelihood that a given event will occur: little probability of rain tonight.
4. In Statistics: A number expressing the likelihood that a specific event will occur, expressed as the ratio of the number of actual occurrences to the number of possible occurrences.
Probability, in mathematics, assignment of a number as a measure of the “chance” that a given event will occur. There are certain important restrictions on such a probability measure. In any experiment there are certain possible outcomes; the set of all possible outcomes is called the sample space of the experiment. To each element of the sample space (i.e., to each possible outcome) is assigned a probability measure between 0 and 1 inclusive (0 is sometimes described as corresponding to impossibility, 1 to certainty). Furthermore, the sum of the probability measures in the sample space must be 1.
Hope this clarifies your point. Ask if you need more!
2006-12-12 16:41:27 · answer #2 · answered by ConsultingCurious 2 · 0⤊ 0⤋
Market potential - Eskimos don't have refrigerators so that market potential is large for selling refrigerators.
Market probability - Eskimos don't have electricity, so the probability of selling them refrigerators is low.
2006-12-12 12:58:18 · answer #3 · answered by Anonymous · 0⤊ 0⤋