The Importance Of Market Sizing And Market Research

Market sizing and market research are both crucial processes that you will need to complete if you want your business to succeed. Find out why in our thorough post below. So don’t just jump in and buy leads.  Review this article and turn your ideas into profits with a process.

Marketing sizing

Your product’s market size concerns the number of potential customers and the potential revenue it can bring in. Marketing sizing is the process of determining this, and it includes the measurements TAM & SAM.

Market research

Market research is another process. This time, it is the action of collecting data relating to the preferences and needs of your customers.

Marketing plans

Both market sizing and market research allow you to develop a marketing plan before you begin any marketing activities. This helps to make your campaign more effective, as you will know not only what kinds of marketing will appeal to your customers but also the size of the campaign you will need to launch. This can help you achieve a much better ROI on your marketing investment.

Competitive analysis

In particular, market sizing can help you work out not only how big the possible market for your product is but also how saturated it is as well. This can help you properly analyze your competition and assess whether there is truly a realistic place for your product as it is in the market.

Additionally, such a competitor analysis can help you make more accurate estimates for your business, ensuring that you better meet the demands of your customers with the minimum of waste.

Ideal customer profile

Market sizing and market research can also help you develop your ideal customer profile, or ICP. Your ICP should include data about some of the wider attributes of the people you expect to be your best customers, such as behavior and environment. This will provide you with more information with which to target a specific audience with your product marketing, ensuring it’s as effective as possible.

Customer personas

Market research and market sizing can also be used to develop customer personas. Customer personas differ from ICPs in that they are less concerned with breath and more with depth. Indeed, customer personas drill down into the fine grain of a fictional customer, allowing marketers to better see things from their perspective, including any pain points that they experience.

This finer level of detail can then be used to better market your product because you can then target your marketing to demonstrate how your product solves problems or helps them overcome them.

Research market sizing for TAM and SAM

Researching marketing sizing is also vital for your business because of the market estimates it provides, including TAM, which is the total market demand, and SAM, which is the portion of the market your business is likely to be able to get. Such information can help you get a much more realistic sense of the revenue you can expect, how big your sales data list should be, and the budget you need to set for your marketing.  

Deliver the right message to the right audience

Lastly, good market research and market sizing can ensure that you get the right message in front of the right people. Which is, after all, the essence of a good marketing campaign. Indeed, without market research and market sizing, you could easily end up targeting your campaign too widely or including things in it that frustrate potential customers instead of enticing them.