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Methods to work out your market’s size are an important component of market research. If you’re developing a product, you firstly need to know your target market is big enough for your final product to be commercially viable. Secondly you need to know that there is a large enough niche that you can serve better than your competition does. Here are five strategic methods for calculating your market’s size:

Know What Sub-Segment Of The Market You’re Targeting

It’s practically unheard of for a company to have total market domination. Even the major corporations have to compete for market share. For this reason, spend time understanding your initial customer base – who your customers are, what matters to them, and how you can meet their needs better than the competition. Work out how large this sub-segment of the available market is and position yourself as their best option before setting your sights on expansion.

Get Realistic Market Size Projections Through Top-Down Estimations

To get a concrete idea of what kind of market share you can expect once established, first examine the total potential market for your product or service. If a major player in your niche took X million net earnings for the past year, subtract this from the total amount consumers spent in your niche to work out the proportion of consumer spending that you could attract to your business.

Next, Start From The Ground Up

Once you’ve measured down from the total size of your possible market to find the market that isn’t already heavily monopolised, work from the bottom up. Workout:

  •            How many local merchants could sell your products
  •            How many competitors sell similar products in this space

This will help you understand in real terms how much scope there is for expansion. Create a five-year plan: what could your local market share look like? Could you feasibly take home 5% of consumer spend with thorough planning and strategy?

Research Your Competitors

Research your competitors as this is one of the crucial methods to work out your market’s size. Who are the major players in your niche? If, for example, you supply parts for the manufacturing industry in an area that isn’t oversubscribed, you could have substantial market share. If you enter a highly competitive space such as hotel booking services, on the other hand, you might struggle to get even 5% of market share without an excellent marketing plan.

Determine The Size Of A Static Market

Building your market share is tougher when you are competing with other services or products in a fixed, static market. If there is a more or less fixed proportion of demand, you will need to do further market research. For example, in the hospitality industry, you will need to work out whether budget or luxury services are on the upswing (this will depend on the economic climate) and adjust your marketing plan accordingly.

Five Strategic Methods To Work Out Your Market’s Size

Methods to work out your market’s size are an important component of market research. If you’re developing a product, you firstly need to know your target market is big enough for your final product to be commercially viable. Secondly you need to know that there is a large enough niche that you can serve better than your competition does. Here are five strategic methods for calculating your market’s size:

Know What Sub-Segment Of The Market You’re Targeting

It’s practically unheard of for a company to have total market domination. Even the major corporations have to compete for market share. For this reason, spend time understanding your initial customer base – who your customers are, what matters to them, and how you can meet their needs better than the competition. Work out how large this sub-segment of the available market is and position yourself as their best option before setting your sights on expansion.

Get Realistic Market Size Projections Through Top-Down Estimations

To get a concrete idea of what kind of market share you can expect once established. First, examine the total potential market for your product or service. If a major player in your niche took X million net earnings for the past year, subtract this from the total amount consumers spent in your niche to work out the proportion of consumer spending that you could attract to your business.

Next, Start From The Ground Up

Once you’ve measured down from the total size of your possible market to find the market that isn’t already heavily monopolised, work from the bottom up. Workout:

  • How many local merchants could sell your products
  • How many competitors sell similar products in this space

This will help you understand in real terms how much scope there is for expansion. Create a five-year plan: what could your local market share look like? Could you feasibly take home 5% of consumer spend with thorough planning and strategy?

Research Your Competitors

Research your competitors as this is one of the crucial methods to work out your market’s size. Who are the major players in your niche? If for example, you supply parts for the manufacturing industry in an area that isn’t oversubscribed, you could have substantial market share. If you enter a highly competitive space such as hotel booking services, on the other hand, you might struggle to get even 5% of market share without an excellent marketing plan.

Determine The Size Of A Static Market

Building your market share is tougher when you are competing with other services or products in a fixed, static market. If there is a more or less fixed proportion of demand, you will need to do further market research. For example, in the hospitality industry, you will need to work out whether budget or luxury services are on the upswing (this will depend on the economic climate) and adjust your marketing plan accordingly.

The key to using all the methods to work out your market’s size well is making realistic projections and estimates. Be objective and don’t let a partial perception of your product or service cloud your estimation of actual market availability.

If you’d like to have expert market research conducted for your project, contact Interact RDT today.

Five Strategic Methods To Work Out Your Market’s Size

Methods to work out your market’s size are an important component of market research. If you’re developing a product, you firstly need to know your target market is big enough for your final product to be commercially viable. Secondly, you need to know that there is a large enough niche that you can serve better than your competition does. Here are five strategic methods for calculating your market’s size:

 Know What Sub-Segment Of The Market You’re Targeting

It’s practically unheard of for a company to have total market domination. Even the major corporations have to compete for market share. For this reason, spend time understanding your initial customer base – who your customers are, what matters to them, and how you can meet their needs better than the competition. Work out how large this sub-segment of the available market is and position yourself as their best option before setting your sights on expansion.

Get Realistic Market Size Projections Through Top-Down Estimations

To get a concrete idea of what kind of market share you can expect once established. First, examine the total potential market for your product or service. If a major player in your niche took X million net earnings for the past year, subtract this from the total amount consumers spent in your niche to work out the proportion of consumer spending that you could attract to your business.

Next, Start From The Ground Up

Once you’ve measured down from the total size of your possible market to find the market that isn’t already heavily monopolised, work from the bottom up. Work out:

  • How many local merchants could sell your products
  • How many competitors sell similar products in this space

This will help you understand in real terms how much scope there is for expansion. Create a five-year plan: what could your local market share look like? Could you feasibly take home 5% of consumer spend with thorough planning and strategy?

Research Your Competitors

Research your competitors as this is one of the crucial methods to work out your market’s size. Who are the major players in your niche? If for example, you supply parts for the manufacturing industry in an area that isn’t oversubscribed, you could have substantial market share. If you enter a highly competitive space such as hotel booking services, on the other hand, you might struggle to get even 5% of market share without an excellent marketing plan.

Determine The Size Of A Static Market

Building your market share is tougher when you are competing with other services or products in a fixed, static market. If there is a more or less fixed proportion of demand, you will need to do further market research. For example, in the hospitality industry, you will need to work out whether budget or luxury services are on the upswing (this will depend on the economic climate) and adjust your marketing plan accordingly.

The key to using all the methods to work out your market’s size well is making realistic projections and estimates. Be objective and don’t let a partial perception of your product or service cloud your estimation of actual market availability.

If you’d like to have expert market research conducted for your project, contact Interact RDT today.

 

The key to using all the methods to work out your market’s size well is making realistic projections and estimates. Be objective and don’t let a partial perception of your product or service cloud your estimation of actual market availability.

If you’d like to have expert market research conducted for your project, contact Interact RDT today.

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