market capacity - a measure that identifies the amount of goods or services that were sold on it for a certain time period.To measure the capacity of the market can be used both value and volume terms.In theory, the market capacity is equal to the sum of national production and import volume minus the volume of the exported product (this is true, if the stocks are unchanged).It should be noted that in practice this formula in view of its application fix almost never used.
Know the size of the market is important in the planning of business development.From the size of the market depends on indicators, based on which built the company's plans, as well as an assessment of the results of its activity in this market segment.
In the absence of knowledge about the capacity of the market definition by market share belonging to her impossible.This in turn leads to the impossibility of tracking the dynamics with which the competition is conducted.
Among other things, the scope of knowledge of the market makes it possible to awareness of the meaning of doing business in the future.On the basis of this important economic indicator you can analyze the possibility and the need for new products for each market segment.In the event that the potential size of the market is not large enough, the cost of the company to create new products and launch them into production will not pay off.
Today developed various methods for assessing the capacity of the market, involving holding both field and desk research.One of the methods, including both field and desk research - a method of chain relations.This method is widely used due to its suitability for assessing the capacity of the market, both in capital goods and in consumer goods.
How to determine the size of the market by the method of chain relations.
Originally built a working hypothesis, suggesting dependence of the capacitance of the market from a variety of market factors.In this process, it is assumed that this dependence has the form:
E = K1K2K3Kn
K1, K2 and so on. D. In this relationship are the coefficients that reflect the impact of market factors on the size of the market.On each next (from left to right), the coefficient is tasked to clarify the result, which is obtained after the administration of the previous rate.For example, the K1 is the total population of the study area, K2 is the fraction of the male population, KZ - the proportion of men aged 18 to 25 years in the total male population, and so on. Etc .;
By conducting cabinet or field studies, numerical values of the coefficients (K1 to Kn) to be clarified;
On the basis of the coefficients calculates the capacity of the market.
For the most complete understanding of the method of chain relationships we give a simple example.We calculate the size of the market CDs with movies that are sold through the online store, carrying out the delivery CD in the region.
To build a formula is necessary to clarify each coefficient in turn clarifying the previous one, and belongs to the chain.
K1 - the number of people living in the region;
K2 - the proportion of people who use the Internet in the population of the region;
K3 income receive an average Internet users who live in this region;
K4 - the proportion of funds allocated to Internet users in the region to purchase CDs in the average monthly income;
K5 - the proportion of income that is spent on the purchase of CDs in online stores (the total amount of funds spent on the purchase of a CD);
K6 - the proportion of funds that are spent on the purchase of CDs with movies.
As a result, a formula that calculates the size of the market will look like this:
E = K1K2K3K4K5K6.
