What Are The Significant Research Steps That Are Involved In Forecasting Market Share For A Retail Business?
While envisioning and calculating the market share for a retail firm, five key steps should be incorporated to ensure the validity of the outcome. Firstly the physical limits of the market or the trading area should be illustrated in a clear-cut and precise manner, leaving no room for ambiguity or doubts. Second step would be to conduct a thorough and meticulous study on the demographics and psychographics of the target market. This, in turn, would help the retailer to define sales potential. Besides researching demographics, the purchasing power of the target market should also be researched upon. Also determination of the prospective total sales revenue from the market area should be calculated to have an idea about the performance of the respective industry of goods that the retail firm will operate in. Lastly, an estimation of the proportion of the retail firm’s share should be conducted, which will eventually outline the rough sketch of the market share.
