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