Market Sizing
Market Sizing is the process of estimating the potential of a
market. Comprehending the potential of a market is essential for companies
looking to launch a brand-new service or product. Utilizing a broad range of
secondary market of sources and databases, we synthesize results from
previously published research along with other data sources to help define: The
total size of a market – The major competitors in a market by category – The
composition and profile of a target customer – The products\/services available
in the market – The most significant trends in the market – Market Sizing
Analysis – To estimate the potential of a market we often use a bottom approach
breaking the unknown pieces down into granular sets of assumptions and then
bring them back up to an overall market size estimate.
Because of the extremely unique nature of every Market Sizing
project, they require a lot of consulting and special attention to produce an
accurate Market Sizing analysis. Market Sizing Approach – We typically start
with a quick estimate a back of the envelope market size estimate that can
provide marketers with enough information to decide if further investments in
product\/service development even make sense. A second step to the market
sizing question involves much more granular analysis. Frequently well develop 2
or more estimates using different approaches. When these approaches triangulate
confidence in the estimated market size range is increased. When the approaches
provide widely disparate results, we use sensitivity analysis to understand
which assumptions are most critical. Additional research or risk reduction is
sometimes recommended to narrow down the range of market size estimates. The
Value of Market Sizing – Developing a Size of Market estimate is a critical
initial step in building the company case for any new product development
initiative.
Market Sizing : What is meant by market size?
