Market size is the measurement of the total volume of a given market. These markets may be broken up by geography or customer demographics, but the goal here is to accurately estimate the size of a potential market opportunity.
You will need to make some assumptions when estimating the size of a market; locating credible sources of market information will be vital.
Market segmentation is the division of a market into different homogeneous groups of customers. These groups should be:
Relying on quality secondary sources for valuable customer information will be critical as an entrepreneur, as you may lack the capacity for generating the primary data necessary to fully understand the marketplace.
Market share refers to the proportion of a market that has been captured by an individual firm. It is a the measure of a company's performance relative to its competitors within a market.
Firms do not have to report their market share positions, and high-quality analyses of markets is often difficult to find or prohibitively expensive. Auburn University Libraries provides access to many sources of information that can help you assess existing markets as you build your business.
The objective of consumer analysis is to identify segments or groups within a population that have similar needs. Consumer analysis can help answer questions such as:
Answers to these questions help identify target markets for specific products or services and advertising efforts.
Develop a consumer: