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Oliver
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Oliver
Asked: September 1, 20202020-09-01T09:29:29+00:00 2020-09-01T09:29:29+00:00In: Education

What is market sizing in business research and consulting?

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Market sizing is often used in business and market research. What actually market sizing refers to and how to calculate it?

management consultingmarket research
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    1. Samantha Level 1
      2020-09-01T09:32:11+00:00Added an answer on September 1, 2020 at

      Market size is the process of assessing how large the market is for your products and services and whether there is any growth potential.

      The size of the market is either measured in volume, value or frequency. Volume refers to the number of units sold, value refers to the money spent in that market, and frequency is how often a product is sold. Essentially, the size of a market can be thought of in terms of ‘how many’, ‘how much’ and ‘how often’.

      It seeks to work out how many people want or may want your product or service and how often they may buy it. But the current size of the market is not the only consideration with market size analytics.

      Market potential is equally, if not more, important than the current size. Just because
      a market is large does not mean it’s profitable – especially if most of the customers
      that want a particular product or service already have one and are unlikely to want
      to buy another!

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