What is the first step an organisation takes to estimate its potential sales?
A)Develop demand curves for different price levels.
B)Estimate demand for the entire product category in the market the company serves.
C)Determine maximum production levels.
D)Determine how to expand market share.
E)Conduct a survey of buyers' knowledge.

Question

Quizplus · Accepted Answer

The first step an organization takes to estimate its potential sales is to estimate demand for the entire product category in the market the company serves. This provides a baseline for the company to determine its market share and potential sales volume. Developing demand curves, determining maximum production levels, and expanding market share all come after estimating demand. Conducting a survey of buyers' knowledge is also useful, but not necessarily the first step in estimating potential sales.

What Is the First Step an Organisation Takes to Estimate