Marketers characterize the market volume as the total amount of goods sold. But by market capacity they mean the amount of the same goods that the market can accommodate, that is, how much of a certain type of goods can be sold on the market.
A comparison with a glass jar is appropriate here: the volume is considered to be the amount of content that is already in it, and how much it can hold is the capacity.
Description of market capacity in marketing
The market potential is considered to be the volume, if again we compare it to a jar, that can fit into it if you apply force and tamp down the contents.
Lack of knowledge and south korea email list misunderstanding of concepts can cause confusion in your head.
Next, let's remember what a market is.
This is a system of relations between producers of goods and services and consumers, arising on the basis of stable economic ties.
Market capacity — Vр = Vпр + Vi – Vэ,
Where:
Vр — the volume of all purchases of a certain product;
Vpr — the volume of production of goods in a specified territory or in a specific segment;
Vи — the volume of imports of the same product;
Vэ — export volume.
A market can only be considered a market when the quantity of goods sold and purchased is the same. That is, sellers sold, for example, 5 units of goods, and buyers bought the same number of units of the same goods. The size of the market can be considered the quantity of goods that have passed the path from the seller to the buyer (possibly through an intermediary). The market is characterized only by what is happening in the present. Everything in the future is just a forecast.
A situation where sellers have not sold and buyers have not purchased a product for reasons beyond their control is not considered a market. A situation where some produce so much that others are unable to meet the demand of such a level cannot be called a market either. This is an imbalance between supply and demand.
Everything that can be called a market happens in the present time, here and now.
Read also!
"Marketing Strategies Examples: From Apple to Barack Obama. Aspects for 2025"
Read more
Now let's return to the discussion of which concept is considered correct - market capacity or market volume.
The whole point is that the complexity and confusion in marketing terms comes from inaccurate translation.
In English there are the concepts of volume - capacity, volume, capacity and capacity - power.
Volume in marketing is used when talking about market size and sales volume.
The word "capacity" denotes, for example, the maximum load of production capacities, the ability of an enterprise to produce, say, one hundred million units of production per shift. This is called capacity.
That is, the following happens: when marketers with a low level of literacy begin to use the concept of capacity (capacity, power) together with the term "market", they mean the maximum permissible volume of sales, which has not yet been reached. But this concept does not carry any semantic load.
The obvious conclusion is that market capacity and market size are one and the same