Market Sizing Strategies

Market Sizing is an art and a science. It answers the following questions:

What is the potential market size for my product or service?Who are the main competitors that dominate the market?What segment of the market do they dominate?What are their market shares?What are the market segments and sizes?[/fusion_li_item][fusion_li_item icon=””]Where are the met and the unmet needs in these market segments?

There are 2 main types of Market Sizing projects:

1. To determine the current market size and your short-term potential.
2. To determine long-term market opportunities, segments, and positioning

Approaches:

Desk Research

Desk research can deliver the Market Landscape [market size and growth, key competitors and products, channels of distribution, technology trends, etc.] Desk research includes government data, published data from journals and syndicated reports, and data on the web.

• Pros: it is cost-effective and fast to deliver
• Cons: rarely will desk research give a complete picture and competitive landscape

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Qualitative Research

Qualitative Research or in-depth interviews [either face-to-face or telephone interviews] with key opinion leaders, suppliers, distributors will add direction as this information will augment the desk research and add direction to the desk research.

• Pros: delivers “rich” insights from the industry stakeholders
• Cons: does not deliver the rigor of quantitative research

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Quantitative Research

Quantitative Research [telephone or online interviews] will add “precision” to the desk and the qualitative research. This degree of precision is necessary to determine the current market size and to forecast its potential over the next 3, 5, and 10 years.

Pros: delivers typically +/- 10% of the true market size

Cons: is expensive and can take up to 4-5 weeks[/fusion_tab][fusion_tab title=”Step 4″ icon=””]

Application of Statistical Methods to the Data

We recommend the application of statistical methods e.g. the Monte Carlo Method and other models for more precision.

The Benefits:

• Capture new opportunities
• Prioritize segments and new opportunities
• Uncover new, profitable customer segments
• Measure the potential appeal and success of your product
• Understand your market, industry, and customer better
• Become more efficient and profitable in your planning