Analytical
What do you take into account when measuring or estimating market size?
Product Marketing Manager
Palantir Technologies
Meta
Akamai
HomeAway
StubHub
Answers
Anonymous
5 months ago
Understanding the total population, narrowing down its characteristics with survey or market research, segmenting the market size with with data analysis
Anonymous
5 months ago
Market size, also Total Addressable Market, has to take into account the realistic assessments that just because on the surface a person has all the characteristics of an enthusiastic buyer, real world testing can yield different results. For example, 100 people surveyed online could indicate a strong preference for XYZ product at a certain price, but when presented with XYZ in a retail environment next to competitors or with other distractions, considerations and factors, the propensity drops from 99% to 75%. This is why small scale roll outs, prototypes, and user testing is critical before any assumptions about take rates can be solidified. Market sizing is an exercise that must be repeated as new information is introduced, not as a one time model that creates a singular answer.
Interview question asked to Product Marketing Managers interviewing at HomeAway, Bol.com, Outbrain and others: What do you take into account when measuring or estimating market size?.