Given the situation that a business is running at a loss in spite of good products, well trained as well as motivated employees and cutting edge website; it is important that the business owner looks at the size of the market. It is true that the products of the company are liked by customers, but there is lack of enough customers to take the business forward. This is the reason why many entrepreneurs size up the market before investing. In this article, we will discuss about the strategy of market sizing. It is a study of sales and marketing technique of a company
The total number of potential buyers that a product or service can have in a particular market and the total revenue the sale of this product or service can generate, is called market size.
- There are three main techniques of market sizing.
- They are top-down, bottom-up and looking at the supply side. Each of these methods is characterized by benefits.
- However, the top-down approach is the most common of the three.