Market Size

The video tutorial explains how to determine the size of a market using various methods. It covers the use of published information, demographic analysis, and competitor data. The tutorial also discusses top-down and bottom-up approaches to market sizing, emphasizing the importance of understanding market transactions and making projections. These methods help in estimating the total number of customers and the dollar value of transactions, aiding in strategic decision-making.

What is a key source of market information when entering a competitive field?

• Government census data

• Customer reviews

• Analyst reports on publicly traded companies

• Social media trends

Which approach involves using competitors' sales data to estimate market size?

• Direct approach

• Bottom-up approach

• Top-down approach

• Sideways approach

What are the two main factors to consider when determining market size?

• Total number of suppliers and their distribution networks

• Total number of products and their prices

• Total number of customers and total dollar value of transactions

• Total number of competitors and their market share

How can introducing a new product affect the market?

• It can stabilize market prices

• It can eliminate competition

• It can change the dollar value of transactions

• It can decrease the total number of customers

Why is it important to estimate the potential market capture?

• To set a fixed price for products

• To avoid market saturation

• To understand the potential for market growth

• To determine the exact number of competitors