Market Sizing: Does This Market Fit?
Before launching a major marketing initiative, be sure you understand the market you’re targeting. Here are the key factors to consider when evaluating new potential markets:
- 1. How big is the total market, in terms of both revenue and units?
- 2. Is the market growing or contracting? How fast?
- 3. Who are the key players?
- 4. How are the key factors that differentiate you from other options?
- 5. What outside factors are influencing this market, e.g., regulatory, environmental, economy?
- 6. What is the impact of technological change?
- 7. What other trends might cause change in the next 12-18 months?
- 8. How fragmented or consolidated is the market?
- 9. Who are the key partners with whom you should be aligned?
- 10. What are the characteristics of key customers? How do these map with your offerings?
Finally, how will you measure success?