How To Calculate The Volume Of The Market | The Science

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# How to calculate the volume of the market

Market size - an indicator, talking about how much goods and services consumed in a certain geographical area per unit time. The term "volume" of the market is often confused with its "capacity", the difference is that the capacity of effective demand indicates the volume - of real goods or services.

## Instruction how to calculate the volume of the market

Step 1:

First you need to define the geography, describes the market (or a segment thereof) and sources of information - usually the results of surveys, studies, expert assessments, sectoral statistics, etc. Determine the amount of time that will be evaluated (usually a month, quarter or year), as well as units in which you will evaluate the size of the market. It can be in pieces or liters (if it comes to the individual product groups), but often still in monetary units.

Step 2:

Evaluate possible sources of information and Collect a sufficient amount of tasks for your expert opinions, statistics, figures, data surveys. You need to find the most accurate and most importantly, check the data. In some cases, we have to do analytical work, comparing the disparate pieces of information and reducing all dennye in a single format (for example, in rubles). There may be a number of difficulties, such as the market for goods in general, easier to calculate than the services market. It is also much easier to evaluate the volume of the market or a specific sector in general, the market volume of individual commodities or (especially) services; In this case, most likely you will have to resort to indirect methods of assessment.

Step 3:

These "raw" data you need to be represented in the form of several important indicators. The first - is to estimate the total volume of the market at a given time interval, the dynamics of change in two or three of the preceding time interval and forecast (trend) to the next. The second - the distribution of the total volume between the territories (as a rule, indicate the share of the major cities in total), their dynamics and trends. The third indicator - the distribution of market volume among the major players (and therefore, how to change their share in the past, what is the forecast). Fourth - the most sold products or groups of products and their shares, respectively, dynamics and prognosis. Finally, the fifth component (it is not mandatory, because it requires a separate study, but very important) - the ratio, in the assessment of the total market and its capacity.