ENT 10-2 Market Analysis (market size, target market)

What is the main focus of a Target Market?

• The total dollars spent by customers in your industry
• A specific group of customers most likely to buy a certain product or service
• The total market demand for a product or service over a one-year period
• The total revenue a business would generate if it sold to 100% of available customers

How is the Total Available Market (TAM) calculated?

• By total number of sales or customers your business can sell
• By total dollars spent by customers in your industry
• By total dollars sold by your competitors
• By total revenue a business would generate if it sold to 100% of available customers

What is a sales forecast?

• The total market demand for a product or service over a one-year period
• The total dollars spent by customers in your industry
• A prediction of sales for a future period based on assumptions of generated sales
• The total revenue a business would generate if it sold to 100% of available customers

What is the Total Available Market (TAM)?

• The total revenue a business would generate if it sold to 100% of available customers
• The total number of sales or customers your business can sell
• The total dollars spent by customers in your industry
• The total market demand for a product or service over a one-year period

What is the relationship between TAM and SAM?

• TAM is the total revenue, SAM is the total market demand
• TAM is the reachable market, SAM is the total market demand
• SAM is a subset of TAM that represents the reachable market
• TAM is the total market demand, SAM is the reachable market

How can you calculate the Total Available Market (TAM) for a new product?

• By analyzing the total dollars sold by competitors
• By determining the total revenue the business would generate if it sold to 100% of available customers
• By estimating the total number of sales or customers the business can achieve
• By researching the total dollars spent by customers in the industry

Why is it important to define a Target Market?

• To focus marketing efforts on a specific group most likely to buy the product
• To calculate the total market demand for a product or service over a one-year period
• To determine the total revenue a business would generate if it sold to 100% of available customers
• To analyze the total dollars spent by customers in your industry

Why is it important to calculate the Total Available Market (TAM) for a business?

• To determine the total number of sales or customers the business can achieve
• To estimate the total revenue the business would generate if it sold to 100% of available customers
• To analyze the total dollars spent by customers in the industry
• To understand the total market demand and revenue potential

What is the Serviceable Available Market (SAM)?

• The total revenue a business would generate if it sold to 100% of available customers
• The total dollars spent by customers in your industry
• The total market demand for a product or service over a one-year period
• The size of the market that can be reached with current product mix and distribution channels

What is the purpose of developing a customer profile for a Target Market?

• To understand common characteristics of the target customer
• To analyze the total dollars spent by customers in your industry
• To calculate the total market demand for a product or service over a one-year period
• To determine the total revenue a business would generate if it sold to 100% of available customers