The article explains:
Description of market capacity in marketing
The difference between market volume and market capacity
Types of Market Capacity + 3 Visual Examples
Benefits of calculating market capacity
Factors Affecting Changes in Market Capacity
Data required to determine market capacity
5 main directions for calculating market capacity
3 Methods for Estimating Market Capacity
Example of calculating market capacity
5 Scenarios for Using Neural Networks to Increase Website Profits by 40%
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Market capacity is a key concept south korea email list in business, on which the success of a specific business idea depends. If this parameter is not taken into account when drawing up a business plan, there is a high chance at the start to incorrectly estimate the costs of purchasing equipment/goods, renting retail and production space, advertising, etc., which will ultimately lead to the closure of the company.
There are several methods for assessing market capacity, each of which considers the factors that influence market change in one of the planes. By combining marketing research methods, you increase the objectivity of the information obtained and competitive advantages in making strategic decisions.
Description of market capacity in marketing
Marketers have invented many different methods for studying interactions with customers. Sometimes they not only do not complement each other, but are also contradictory. A number of them have not yet been fully studied, and some are still the subject of heated debate.
But we should not forget that in marketing, as in any other science, there are concepts and principles that are considered fundamental. Every specialist in this field agrees with them. It is these principles that are taken as the basis for new theories and concepts.
The concept of market capacity , which comes from the English market size, can be safely attributed to one of the fundamental concepts in marketing science. When promoting a product or service, you simply must focus on capacity indicators. Otherwise, failure is inevitable.
So, what is market capacity and how to calculate it? This is the size of the market for any type of goods or services, equal to the total volume of potential sales for a certain period of time or the demand for a given product category, expressed in the purchasing power of the population of a specific territory.
The obtained values are extremely relevant for business. Before launching the production of any product, the company must thoroughly study all the components of the market capacity.
One marketing study provides an indicator of the market capacity for one or several product or service groups. The final result reflects the situation occurring in one market segment.
There are several approaches to determining market capacity. And only their combined application will allow us to obtain a value close to the true one.