Quantifies the financial potential of your business. Measurement in money terms or consumption units Helps you refine business model canvas hypotheses A very small market size may not be worth pursuing.
Target Market Sizing
Target Market Sizing is key for business and marketing planning, and budgeting for all startups, especially when seeking third-party financing. A diligent preparation makes sure, that you go-to-market in the right niche.
Market Size Estimates
Total Addressable Market
Entire chain of buyer/seller relationships. Value of the relationships at the point of consumption.
Served Addressable Market
The part of the Total Addressable Market for which your business model’s value proposition is strongest.
The part of the Served Addressable Market segment with the most direct path to success.
All buyer/seller relationships – value of the relationships at a point of consumption
- We use two methods to determine the total addressable market
- 1. A top-down analysis relies on secondary market research such as market analysis reports to determine how many end users meet your different characteristics.
- 2. A bottom-up analysis to identify how many customers there are, as well as how many end users each customer has
The part of the total addressable market for which your value proposition is strongest
- The served addressable market is more clearly defined as that market opportunity that exists within a firm’s existing core competencies and/or past performance.
- A firm most likely can only service markets that are core or directly adjacent to its current customer base
The served addressable market segment with the most direct path to success.
- A segment of people considered likely to buy a product or service.
- A target market consists of customers that share the same buying motives and often as well follow similar characteristics, such as age, location, income and lifestyle, to which a business directs its marketing efforts and sells its product.
Only a few companies have the resources to conduct market research beyond their core market. They have brilliant expertise in this home-turf but little understanding about cross-industry threats, or black-swan scenarios. While this wasn’t a problem in the past – today, disruption comes from tech platforms or startups
In Germany, doing business is as much a personal event as it is professional. You have to be patient and prepared for multiple interactions to build trust. There is a local competition. Why would customers buy from you over the local champion?