Market Sizing Strategies

sis market sizing

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

  • What is the potential size of the market 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 segments of these markets and the size of these segments?
  • 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 in this market
  2. To determine longterm market opportunities, segments and positioning

Approaches in Market Sizing:

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 of the market size and competitive landscape

Qualitative Research

Qualitative Research or in-depth interviews [either face to face or telephone interviews] with key opinion leaders, suppliers, distributors will add direction to the market sizing 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

Quantitative Research

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

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

Cons: is expensive and can take up to 4-5 weeks

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 precise market sizing.

Benefits of Market Sizing

  • 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