Published on July 12th, 2021 | by Sunit Nandi0
Here’s How To Do Market Sizing The Right Way
Doing business is not about guesswork. You have to ensure that you know the details about your target industry. Finding the right info about your market is the most necessary thing for any business.
Market sizing is a proven way of finding relevant details about your target market. It allows you to know what opportunities you have, where you are lacking behind your competitors, and how you can reach your goals. Keep reading to find out how you can estimate the market size properly.
The Defining Phase
Defining your market is the first thing to do before you start the Market Sizing process. You won’t get any idea about your market even if you have received tons of data about your market. Figuring out what you want to be included in the Market Sizing process is the first step.
Think about the timeframe of your market sizing journey, whether you want current or future projections, checking the market potential, the region where you want to do the market sizing is all important. Click on this link if you want to learn the right market sizing questions.
The two basic methodologies of doing any Market Sizing estimates are top-down estimation and bottom-up estimation. Choosing the right approach for your business is an important thing you cannot overlook. If you don’t have enough time and want to validate what you estimated about your target industry, the top-down approach is usually the right choice for you.
But working with a bottom-up estimation is more favorable if you want to understand the opportunities available for you in detail. The increased accuracy of this approach requires you to spend more time – and might not be the right option for you if you want a quick overview of the market.
Choosing your sources of information depends on how much time you have for the research and what you are willing to spend. The two main types of research are primary research and secondary research. Primary research is also known as field research where you have to conduct research directly from your target market. Things like conducting on-site visits, hopping on phone calls for detailed interviews, and keeping an eye on marketing trends comes under primary research.
Secondary research is on-desk research where your team scans through all the previous data available about the market. Secondary research is usually the part of primary research for getting proper insights.
Gathering the data is not the only goal of doing any research. You have to ensure that you divide the data you have in proper clusters for making the right assumptions about your market. “Typology” is the technique used in the business world for useful data structuring.
It allows you to do qualitative data analysis so you can identify data themes within the datasets. This clustering process also makes it smoother for you finding out where data matches and where you have the differences among different datasets.
After categorizing your data, the next step is doing a proper analysis. Data analysis is the toughest part of any market sizing project as you have to be very careful about what method you choose. Using multiple factors in your research and presenting your information the right way is critical. You have to weed out any repetitive data that you have gathered during your research.
Proper scrutiny ensures that you can present your data properly when needed and can get the right insights – so you don’t end up wasting your time and effort in the future. Verified findings about your business help you make learned decisions in the future. Hopefully, you’ve learned something beneficial after reading this article and if you want to learn more, visit the Career In Consulting blog.