Predicting Market Size

There are four main methods of determining market size. 1. Forecast based on average growth rates. Based on the data of past years chosen mathematical function that describes the rate of market growth over the years. Additional information is available at Dennis Lockhart. Then a forecast growth rate for the next period and calculates the size of the market, based on the last actual value. This is the simplest and at the same time the least accurate method of forecasting.

The correctness of the forecast depends on how well matched the mathematical function and its parameters that describe the growth of the market, as well as the constancy of the market. This method is best used for approximate predictions for the big time intervals and for a stable mature markets. 2. The forecast based on the relationship of the investigated market and macroeconomic fundamentals. According to the past determine the dependence of growth macroeconomic indicators and the advertising market.

On the basis of this dependence is calculated projected market size, based on forecasts of the Ministry of Economy on macroeconomic performance. For more information see this site: Dennis Lockhart. The main drawback is that using this method can be accurately assessed only the total market. 3. The forecast based on the intentions of clients. Forces of sales managers can conduct a survey of potential customers on how to What is the probability and what budget they can spend to pay for your services. The disadvantages of this method are the most resource-intensive and the reluctance of customers to disclose their intentions. Advantage – the possibility of predict the market structure by product group. 4. The forecast based on expert assessments major market participants. Advantage – the expectations of key market players. Drawback – the expectations are ignored small players. Marina Kulikova When quoting, republication or using any reference to 'Market Publishers Ltd' and a hyperlink to the required. 2007.

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