Market Size Analysis (1)
Total Market Potential
- Existing consumption patterns: Use of input-output tables to show the relationship of one economic sector to another. Total volume of sales changes for a particular type of product can be projected by comparing these tables with the economic projections as a whole.
- Data on other countries: Collection of data on the consumption of a given product in countries with different per capita GNP and then project sales at different income levels. Reasonably good fits for many products have been found by using this method. However, it may not hold good for some products in some countries (e.g. number of cars sold in Switzerland is lower than the GNP per capita would predict).