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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
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)?

Total Addressable Market: Methods to Estimate a Company's Potential Sales 

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Market Sizing Course - LinkedIn Learn

 

 
If the link for the Market Sizing course doesn't connect access the LinkedIn Learning site using the link below.
LinkedIn Learning 
Select the "Visit LinkedIn Learning" button in the center of the landing page.
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

 

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 2.0 Generic License.