Revenue = P*Q. Market size in terms of revenue will show either of two things or both:
1. How is the pricing compared to the rest of the market ?
2. Is this pricing attractive enough to have a majority share of Q being sold in the market ?
This does not tell me anything in particular about the customer wrt entry into a new market or introducing a new product. Kindly clarify please.
It doesn't.
It's the problem with talking about 4Cs.
Customer in reality means… Market Demand.
So it's about understanding the market demand. One of the components may be (if the case requires it) the total market size. It really depends on the case objective.
If you have to reach $100M in sales… you want to know if the market is large enough to allow for that level of revenue.
Hi Himanshu,
Market sizing isn't really understanding the customer. Market size is just your TAM. It's the size of the prize (if you were to capture the whole market).
You're also way too focused on pricing. TAM isn't about price. It's about size.
Pricing is in relation to once you launch into the market. You cannot possible sell every product at the same price to = your Market Size. It's going to depend on the exact product you build, competitors, customer segments, etc.
Hi Himanshu,
I would be happy to share my thoughts on your question:
If you would like a more detailed discussion on your specific situation, please don't hesitate to contact me directly.
Best,
Hagen
You can find the DACH consulting salaries report 2024 here!
(edited)
Hi there!
If you're using this as a framework for understanding the case, it's not the best tool for reaching your goals.
I would go for a much broader approach.
Can you share the full prompt that you are trying to solve for?
Best,
Cristian
