Market Size 1.1.1

Market size - a measure of the total available demand for competitors in a market.
• It indicates the potential sales for a firm
• Normally measured in terms of annual sales or volume sold per year
• Usually measured in terms of both volume (units) and value (sales)
• Size of individual segments within the overall ,arles can also be measured.

CALCULATING MARKET SIZE

Method One:

NUMBER OF UNITS SOLD IN MARKET (per period) X AVERAGE SELLING PRICE  (£) IN MARKET (SP)

MARKET SIZE = UNIT X SP

Method Two:

FIRM'S REVENUES (per period) ÷ MARKET SHARE (%)

MARKET SIZE = REVENUE ÷ MARKET SHARE

CALCULATING REVENUE

Method One:

Market Size (£) ÷ Firm's Market Share (%)

Links to videos and articles on market size
• Market size calculations