13292816
Description
Mind Map by LICETH PERILLA, updated more than 1 year ago
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Created by LICETH PERILLA
over 6 years ago
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MARKET PROJECTION
- Every small business wants to increase sales and increase market shares, the basic principle is to
define which businesses remain within their market and which is the best way, the question for small
businesses often becomes how a company determines its current market and project your future
market?
- The market share projection is similar to a gap analysis
- In the next table we will
show the business current
of a company
- 1. Determine the size of the market: It is true
that determining the size of a market is not
always easy, the fundamental principle to
determine the size of the market is to calculate
the potential consumption within the market
- 2. Determine the business related to the
potential business: Every small business should
be able to quantify its existing business.
However, he is a little more involved when it
comes to determining the amount of business
remaining. For example, suppose a small
company sells parts for a market that has three
large machine manufacturers. How many
machines are sold in the market in a given year,
and how many parts of the company has each
machine.
- 3. Determine the current market share: The determination of the current market share simply It
involves dividing the current business by total market size. For example: A small company currently
sells 10,000 units to the three machine manufacturers. The small business determines that the
remaining business includes 30,000 additional units that could be sold to these three manufacturers.
The total market size would therefore be 40,000 units and the company's market share would be 25%.
- • Market size = current business (10,000 units) + potential business (30,000.00) = 40,000.00 units
•Current market share = current business / market size = 10,000 / 40,000 = 25%
- Once the small business has determined all the variables, the whole process to determine the market
share is quite simple. The problem is to accumulate the data in the size of a certain market. To help,
there are several sources of information that can be used. Some of these include: trade magazines,
industrial or market publications, Internet and obtain information directly from customers.
- How can a company project its future market share? In our example, small businesses have a market
share of 25%. There is an additional 30,000 units available. However, to project its future market
share, the small business must determine what part of the remaining business (30,000 units) it can
steal from its competition. Because each market is different, each market share projection involves
different approaches and different circumstances. However, the basic approach is to determine the
amount of new business (units) that the company can steal from its competitors. These are the types
of questions that the small business should ask themselves.
- 5. Does the small business have a new product
and has the right customers? they will move
forward with the orders? If so, what are the
volumes?
- 1. Does the small business have a cost
advantage that could be used to steal
more business? If so, how much could he
steal realistically?
- 2. Does the small business currently have
contractual agreements on supply with
customers and are those customers
seeking to increase their consumption?
- 4. Have they indicated to customers that they buy
more next year and have they captured these
numbers in sales forecasts?
- 3. Can small business take advantage of the
mistakes made by their competition?
- 7. Does the small business have a technological
advantage, or even a cost per use Benefit for their
products, What could they take advantage of to ensure
more sales?
- 6. Has the small business improved its marketing
approaches and has it been better? Sales leads more
qualified?
- 5. Does the small business have a new product
and has the right customers? they will move
forward with the orders? If so, what are the
volumes?
- How can a company project its future market share? In our example, small businesses have a market
share of 25%. There is an additional 30,000 units available. However, to project its future market
share, the small business must determine what part of the remaining business (30,000 units) it can
steal from its competition. Because each market is different, each market share projection involves
different approaches and different circumstances. However, the basic approach is to determine the
amount of new business (units) that the company can steal from its competitors. These are the types
of questions that the small business should ask themselves.
- Once the small business has determined all the variables, the whole process to determine the market
share is quite simple. The problem is to accumulate the data in the size of a certain market. To help,
there are several sources of information that can be used. Some of these include: trade magazines,
industrial or market publications, Internet and obtain information directly from customers.
- • Market size = current business (10,000 units) + potential business (30,000.00) = 40,000.00 units
•Current market share = current business / market size = 10,000 / 40,000 = 25%
- 1. Determine the size of the market: It is true
that determining the size of a market is not
always easy, the fundamental principle to
determine the size of the market is to calculate
the potential consumption within the market
- In the next table we will
show the business current
of a company
- The market share projection is similar to a gap analysis
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