Market sizing and share tool

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Question - how readily can I get market size and share data?

Answer - it depends very much on the market, and the product or service categories you are selling into that market. Some market are mapped encyclopaedically, as are some products and services - because there are lots of companies willing to buy the information. However, many markets, products and services will not have readily available data at all, then you need to either calculate the market from first principles (if it is a new market), or commission a market intelligence agency to conduct "triangulation" research, i.e. matching data from several sources.

Key action points

This tool helps you assess your market size, your sales potential and your market share.

In the best case, your market is monitored by reliable market research or trade audit companies, and all you need to do is to buy the report(s). If this is the case, our tool will help you calculate your sales potential by segment.

In the middle case, your market is established but not reliably monitored. Here we propose some methods for measuring and tracking your market size and share.

In the worst case, you are launching products or services into a market that does not exist today. Here we give you a formula for exploring your sales potential.

In more detail ....

This tool helps you do three tasks:

1. identify the size of the market
2. estimate the potential size of the market
3. estimate your share of the market

Existing market

If the market is already established, and someone is measuring it accurately, then the situation is relatively simple - you buy the report. An excellent place to search for published market size reports is Mindbranch.

Given that the size of the market and its segments are known, our "Existing markets" sheet helps you work out your sales potential.

It assumes that:

• the size of each segment is known
• you can estimate the growth rate of each segment
• you know your own sales into each segment
• you could gain or lose market share from the competition
• there is an untapped market of people who could use the product or service but are not currently doing so

Unmonitored markets

The markets where you can easily buy market size and share data are those where there are several major suppliers willing to pay for that information.

This makes it worth an agency's while developing market reports. Many markets are not like this. You will have to work out the size of the market and your share of it yourself. The "Unmonitored markets" sheet gives you some tips as to how you could measure your market size and share.

New market

If you are developing a new-to-the-world market that has not existed before, the issues are:

• Belgium tel: +32 (0)2 747 0945
• France tel: +33 (0)1 76 63 74 09
• UK tel: +44 (0)208 099 7385

or by e-mail at enquiries@mudvalley.co.uk.

© 2005, Mud Valley ™ brand marketing community.

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