Estimating Local Consumer Market Size for Marketing Decision-Making

Abstract

Marketing theory provides a lot of tools and methods for planning and analysis, but their practical use typically requires data that are not easily available, especially for small and medium enterprises (SMEs) operating on smaller local markets. In this study, we present a method that allows SMEs to simply estimate the size and growth trend of a local market in the Czech Republic defined by selected municipalities. The data about total consumer spending in 2011–2016 period were drawn from publicly available sources. We have created maps using the QGIS software with estimates of total consumer spending in all municipalities of the Czech Republic in 2016, total consumer spending in specific local market in 2016 and the average annual growth rate in consumer spending in 2011–2016 as well. It may serve as a guidance for SMEs about where the biggest opportunities and threats in the market size and growth are. The same method has been applied to part of South Bohemia region as a case study whose results could be used for estimation of the same figures about consumer spending.