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?
1. The market share projection is similar to a gap analysis
  1. In the next table we will show the business current of a company
    1. 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. 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. 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%.
      1. • 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?

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MARKET PROJECTION

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	Created by LICETH PERILLA about 6 years ago