Market Potential Analysis Exam
UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Market Potential - CORRECT ANSWER The maximum number of units a market can consume
at a given time.
Market Potential vs Current Demand - CORRECT ANSWER Market potential is the maximum
possible consumption, while current demand is what is actually being purchased.
Market Share - CORRECT ANSWER The percentage of current market demand captured by a
company.
Relationship between Market Potential, Demand, and Share - CORRECT ANSWER Demand is
part of total market potential, and market share is a portion of current demand.
Barriers to Market Potential - CORRECT ANSWER Unaffordability, unrecognized need, lack
of awareness, lack of desired performance, lack of skills, insufficient infrastructure, unavailability.
Market Share Performance Tree - CORRECT ANSWER Awareness → Attraction → Price
Acceptance → Intent to Buy → Purchase/Repurchase.
Market Share Leakage - CORRECT ANSWER Occurs at each stage where customers drop off
in the funnel.
Fixing Market Share Leakage - CORRECT ANSWER Identify weak stages and improve them
(increase awareness, improve value, adjust price, etc.).
Broad Market Definition - CORRECT ANSWER Focuses on customer needs and identifies
new opportunities.