Market Potential Information
Related Topics
Resources
Strategies for Sizing Markets
What is a geographic market worth to your business? Mapping Analytics will help you find the answer. Market potential can be expressed as a function of:
- The number of customers purchasing
- Amount purchased
- Frequency of purchase
In other words, market potential = (how many * how much * how often)
Bottom Up or Top Down Market Analysis?
It all depends on your specific needs. Mapping Analytics can advise you on the best approach to sizing any market. We employ various methodologies and data sets to get you the answers you need.
- A bottom up approach to market sizing starts with your customers. How much and often do they buy? What is their profile? How many potential customers do you have in the market based on your customer profiles? How can you reach them?
- A top down approach starts with market and industry data. It takes a close look at a geographic market area and profiles the consumers and/or businesses to let you know their propensity to buy your products and services.
Mapping Analytics has expertise in both these approaches to market sizing. We also have a wealth of data sources through partnerships with the best data providers in the industry. We can match the right data for market analysis to your business and market strategy.
Cluster Analysis for Market Sizing
We often use lifestyle clustering systems to size consumer markets. Clustering systems operate under the premise that "birds of a feather flock together." That means people with similar buying behaviors and demographic profiles tend to live close together. This helps you identify neighborhoods or markets where your potential is highest.
- Cluster analysis identifies key segments in the population that are more likely to purchase your products than the average consumer
- Knowing in which clusters people reside provides a reasonable means of understanding and predicting how they will behave
- Understanding which clusters are more likely than others to purchase allows better targeting
- Clusters are tied to geography, allowing you to identify and prioritize neighborhoods, trade areas and markets
Next Steps
- Don't just size markets, attack them! Read how to access market opportunity.
White Paper Resources
"Customer Segmentation Fundamentals"
Discover the six steps to creating customer segmentation profiles and using them to understand market potential for your products and services.
Download
"The Intelligent Approach to Retail Site Selection in a Challenging Economy."
Develop store network growth/contraction strategies that maximize market potential.
Download
"Three Steps to More Productive Territories"
Discover a valuable process for improving the performance of your sales territories.
Download
Market Analysis at ZIP Code Level
Market sizing can be done at any level of geographic detail, from block groups to states.
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Lifestyle Cluster Report
Lifestyle cluster reports help rank consumer markets.
View report