Before we talk about defining the market, the concept of the market must be clarified so that it is easy for us to define it. Therefore, the market is generally defined as the geographical area collects the seller with buyer and also defines the relationship between supply and demand. PRIDE and FRYL define the market as a group of individuals and companies in need of a particular commodity who have the desire and ability to buy that commodity.
The size of the market means the number of individuals in a particular market who may be potential buyers of products it produces or the service it provides. The size of the market is one of the most important things that you have to define before starting to produce your commodity and you will be able to predict the amount of production and profits and the amount of raw materials you will need.
How do you know who it is in your market? You first need to know if there is anyone who wants or needs products, goods or services that you plan to sell. Defining the size of the market depends initially on the accumulation of information that we have previously talked about:
1. Identify the category your project will target.
2. Know their rate of the total market size. For example, if your target group is males aged 20-25 years, let us assume that the number of Amman's males between the ages of 20-25 is 50000 (for example) and represent 30% of the number. Thus, the total population of the city will set your market numbers.
3. You will take into consideration the competitors, and thus the number to reach us will not be your share alone and here you must calculate their shares of the market and forecast your initial estimate of your share of this market.
By calculating the size of your market you will be able to produce the necessary products and thus avoid wasting money and will also help you set the marketing channels you will use and estimate your profits.