# Finding weighting factor to estimate proper market data

• Aug 3rd 2011, 04:17 AM
mlasmanis
Finding weighting factor to estimate proper market data
Hello,
How to calculate an appropriate market factor combing GDP market share, industry market share and a growth rate of the specific market.

For example
GDP = 25 %
Industry market share = 40%
Growth rate = 6 %

Just multiplying the numbers does not solve the problem since the number end up quiet small. One idea might be to calculate a weighting factor based on industry market share and growth rate that can be multiplied with GDP percentage
• Aug 3rd 2011, 05:16 AM
CaptainBlack
Re: Finding weighting factor to estimate proper market data
Quote:

Originally Posted by mlasmanis
Hello,
How to calculate an appropriate market factor combing GDP market share, industry market share and a growth rate of the specific market.

For example
GDP = 25 %
Industry market share = 40%
Growth rate = 6 %

Just multiplying the numbers does not solve the problem since the number end up quiet small. One idea might be to calculate a weighting factor based on industry market share and growth rate that can be multiplied with GDP percentage

What do you want to do with the number you end up with?

CB
• Aug 3rd 2011, 05:38 AM
mlasmanis
Re: Finding weighting factor to estimate proper market data
Quote:

Originally Posted by CaptainBlack
What do you want to do with the number you end up with?

CB

I want to calculate an index for a market and compare markets to each other.
Equation might look like this

m= x*GDP

X-should be weighted figure of industry market share and growth rate

BR
• Aug 3rd 2011, 06:12 AM
CaptainBlack
Re: Finding weighting factor to estimate proper market data
Quote:

Originally Posted by mlasmanis
I want to calculate an index for a market and compare markets to each other.
Equation might look like this

m= x*GDP

X-should be weighted figure of industry market share and growth rate

BR

The way you ask the question it seems that such a factor is essentially arbitary and so there is no objective criteria for choosing between proposed factors.

CB
• Aug 3rd 2011, 07:34 AM
mlasmanis
Re: Finding weighting factor to estimate proper market data
Quote:

Originally Posted by CaptainBlack
The way you ask the question it seems that such a factor is essentially arbitary and so there is no objective criteria for choosing between proposed factors.

CB

Thank you very much for your help I think we just figured the problem
Best regards