MANAGEMENT

Detailed explanation-1: -What Is Market Sizing? The “market size” is made up of the total number of potential buyers of a product or service within a given market, and the total revenue that these sales may generate. It’s important to calculate and understand market size for several reasons.

Detailed explanation-2: -Market value, meaning the total amount of sales revenue from a market, is often considered as different from market size, which might just measure the raw number of sales or customers in the market.

Detailed explanation-3: -For example, a sneaker manufacturer might identify 100, 000 people interested in its product, but research on income and accessibility shows that only half of them have the means to follow through with a purchase. In that case, the available market is 50, 000 potential customers.

Detailed explanation-4: -3. Use the market size calculation formula (number of target users x purchases expected in a given period of time = market size or volume) to better understand your target market potential.