Gartner Research

Four Steps for Calculating Potential Market Share Size for a New Product or Service

Published: 10 July 2018

ID: G00361050

Analyst(s): Emil Berthelsen , Kenneth Brant

Summary

Market sizing is a crucial exercise for new product/service development and securing executive leadership buy-in. Technology product managers must employ robust frameworks to quantify potential market demand, and defend key business plan elements and assumptions.

Table Of Contents
  • Key Challenges

Introduction

  • Moving Insights From the Total Market Opportunity to Market Segment Opportunity Level

Analysis

  • Generate Defensible Market Segment Opportunity Estimates by Achieving Mastery of Customer and Commercial Dynamics
  • Step 1: Combine Top-Down and Bottom-Up Research Approaches to Build More Focused and Defensible Total Market Opportunity Estimates
  • Step 2: Shift Focus From Sizing the Global Potential Market to Defining the TAM
  • Step 3: Refine Potential Estimate Into Total Serviceable Markets
  • Step 4: Expand Value of MSO With Focus on Actual Financial Impacts to Your Company

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