You are the marketing manager for a local food company responsible for investigating the attractiveness of expanding your fresh doughnut operations to a new market. Your marketing research estimates that there are 23,500 consumers currently in the targeted market, and each individual will purchase an estimated 15 doughnuts in the next year. If an estimated 136,500 doughnuts are currently being demanded, how developed is this new market you are exploring? What is the revenue potential in this market? If the doughnuts are sold at an average price of $2.19, what is the revenue potential in this market?

ANSWER IS: 38.72% developed; $771,975 revenue potential

Explanation: Size of doughnut market = 23,500 customers * 15 doughnuts each customer i.e. 352,500 doughnuts Current demand = 136,500 doughnuts Development level of market = (Current demand / Size of market) * 100 = (136,500 / 352,500) * 100 = 38.72% Revenue potential in market = Size of doughnut market * Revenue per doughnut = 352,500 doughnuts * $2.19 per doughnut = $771,975 2.

PLEASE ANSWER THIS QUESTION WITH THE NEW INFORMATION;

You decide to enter the market. You estimate that your company could command 69,500 of the possible doughnuts sold. If you were to sell your doughnuts at the same price of $2.19 per unit and the rest of the competitors in the market sell their doughnuts at an average of $1.99, what would your market share be for this doughnut market? Use the demand from the existing competitors from question 4 to estimate share.

End marketing manager example.

Group of answer choices

29.82%

38.23%

35.91%

21.28%

31.52%