LibGuides: Texas Innovation Center Resources and Support: Market Sizing

Market Sizing Basics
Market Sizing Course - Video

What is Market Sizing?
Market sizing is traditionally defined as estimating the number of buyers of a particular product, or users of a service.
Market Sizing Methodology
Defining the Market	Who's the buyer? Who's the user? (yes, it can be different from the buyer) What is the scope of my market (geographically and/or demographically)?
Identify the target industry	Identify the target industry and the major players by exploring the Industry Research Guide.
Research potential competitors	Research potential competitors by looking for reported numbers in financial analyst reports (i.e. number of customers reported by competitors, market share, revenue) Compile both competitor revenue and number of customers.
Questions to ask when sizing the market
Does the market consist of business (B2B) or consumers (B2C)? Does the market organize itself by product, by segment, geography, or other? What is the total market size (Total Addressable Market - TAM), the portion of TAM which your company's product and/service address (Serviceable Available Market - SAM), and the portion of SAM which your company can capture besides your competitors (Serviceable Obtainable Market - SOM)?

Market Sizing Course Link - LinkedIn Learn

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Type: Determining Market Size for Your Product or Service

Course details

32m
Beginner
Released: 9/13/2019

To determine the size of your potential market, tighten the focus until you have a clear and specific picture. By applying successive industry and market segment funnels, you can arrive at a target market which is both credible to investors and feasible for you to serve well. This course introduces the market funnel framework, a three-step process for defining your target audience and sizing segments in terms investors can use and you can apply to your financial plan.

This course was created by EntrepreneurNOW.

Learning objectives

Defining your target market
Identifying a market big enough to support your business
Calculating a viable return on investment
Defining your industry and its segments
Identifying the “sweet spot” target market
Assigning a dollar amount to your target audience

Texas Innovation Center Resources and Support

Market Sizing

What is Market Sizing?

Market sizing is traditionally defined as estimating the number of buyers of a particular product, or users of a service.

Market Sizing Methodology

Defining the Market

Who's the buyer?

Who's the user? (yes, it can be different from the buyer)

What is the scope of my market (geographically and/or demographically)?

Identify the target industry

Identify the target industry and the major players by exploring the Industry Research Guide.

Research potential competitors

Research potential competitors by looking for reported numbers in financial analyst reports (i.e. number of customers reported by competitors, market share, revenue)

Compile both competitor revenue and number of customers.

Questions to ask when sizing the market

Does the market consist of business (B2B) or consumers (B2C)?

Does the market organize itself by product, by segment, geography, or other?

What is the total market size (Total Addressable Market - TAM), the portion of TAM which your company's product and/service address (Serviceable Available Market - SAM), and the portion of SAM which your company can capture besides your competitors (Serviceable Obtainable Market - SOM)?