Size IS important!

People often forget to estimate the size of the market they are operating in or hoping to operate in.

Several people I have spoken with recently have done some fantastic work with marketing planning, thinking long and hard about market segments, what appeals the most, what their strengths and USP’s are, along with pricing research, costs to acquire new business, and even gone as far down the line as wonderful logos without even considering the actual size of their target market.

This can be critical in terms of success… just think, how many times have you heard an “I’m out” on Dragons Den purely because of the size of the market?

There are plenty of data sources around, including assistance from the information team at Business Link, but also data bureaus and marketing agencies. Where specialist data is a challenge there are also various methods that can be used for calculations and estimates.

The purpose of this article is just to act as a red flag to remind people not to forget about checking their market size. It could be much bigger or smaller than you think.

General, Marketing Consultants, Tweet Popular

http://jobspert.com/knowledge-center/ John Papers

I do agree that market size does matters, because a businessman should actually have an approximate idea of number of clients he is visiting.
tsanko

Wonderful ..thanks a lot for posting a good informitive blog
http://www.sharp-end-training.co.uk jonathan

Here you go

http://homepage.ntlworld.com/michael.fay/PRSY.html
http://www.maxxy.co.uk Maxine

Jonathan

You do realise that I had to look at my map on my wall to find PRSY as I thought it was a new county up near Whitley Bay that I hadn’t annoyed yet with my marketing stuff and then got a shock as I typed PRSY into google (Don’t do it.. there are some strange images where I think they thought I had spelt another word wrong using googles new instant predictive search thingy.. not that I search for many things with the letters p s y in the word!… shows they don’t know their customers that well or darn it the hubby has been on my pc again)… whatever.

Anyway, yes I did see Piers Morgan and Lord Sugar. Really enjoyed it and think we are all missing a trick sometimes when we don’t think of actual market segments and what they want. Shame he didn’t give away free yorkies with each one.

Talking of Lord Sugar, did you see the story about having a pop at Kirstie Allsopp on Twitter… Apparently he called her a “lying cow” … see now, that’s what I like a bit more people expressing their opinions honestly on twitter hehe

If you come down again soon and make it past Newark I shall leave some oxygen masks for you at various fuel stations, bit like runners have water bottle stop points, to keep you going. If you get as far as Watford then turn around as you have gone too far mate!

Take care
Max-the-filth-merchant
http://www.leafllp.com Paul J Westerman

I agree with the basis of your blog. That said, within professional services there is an expectation that a level of professional expertise is available whether it’s through the likes of the magic circle law firms or top 4 accountancy firms or the 5 -10 partner practices. Therefore “size” doesn’t matter only the size of the clients bank account.

In reality the size of the market is a fluid entity. Professional service clients are always looking at new routes to market, new ideas to reach potential clients and most importantly the development of existing clients portfolios. Utilising the data from sources such as Business Link is a good start, however the understanding of how to truly capitalise on the data can sometimes be missed, or sadly in some instances advice/guidance can be out of date and misleading. Then it doesn’t matter how large or small potential market is, you might well have missed it.
http://www.twitter.com/stevedesigner Steve O

Oi! I’m a Northerner… and we certainly do have a warped sense of humour Jonathan seems to have had his surgically removed, however. Forgetting your market size can be a major issue.
http://www.sharp-end-training.co.uk jonathan

Dear filth merchant

I watched a bit of “When Piers met Lord Sugar” week

Piers Morgan is a bit of a parasite/wannabe but Lord S is usually worth listening to.

Interesting that he was saying that in the early days he wanted Amstrad to provide computers and home electronics for the truck driver or factory worker. He knew they wanted solid, functional and practical with no whistles or bells. In short, he knew his market.

Disgusted

(Not sure if I said but when I came down from PRSY last month, my compass started spinning around constantly out of control once I got past Newark. Must be the gravitional field of PRSY or something)
http://www.maxxy.co.uk Maxine

Thank you Ann

Great to have your comments and absolutely you are bang on the money with comments about size of the price within the market being important.

Claire must make a really good business case example to a lot of people by focusing on profit. Isn’t there that (probably northern) saying about “turnover is vanity, profit is sanity” and it’s not just the actual price which that market will bear but also the cost to serve it.

I’m just staggered that in this day and age (ark at me) with information at our fingertips and so much useful advice and data out there how many people get so far down the line with their business models and their marketing plans without ever really paying any attention to the size of a market or market segments.

Thanks for comments
http://www.maxxy.co.uk Maxine

Dear Disgusted, Sheffield

You are right. I shall go back to my gutter. I like it there!

Love
Max
xx
http://www.theinspiredgroup.com Ann Hawkins

Its not just the size of the market, its the size of the price related to the market that is important. A tiny niche in the luxury, high end marketplace could bring more profit than sell em cheap, stack em high.
I was talking to Claire Martinsen of Breckland Orchard about her decision to stay out of supermarkets and concentrate on exclusive outlets for her drinks. She makes more profit that way.
As for the comment above, its well known that Northerners have a warped sense of humour.
http://www.sharp-end-training.co.uk jonathan

This is just a sensationalist piece of gutter journalism and titilation dressed up a business advice.

I mean most people just concentrate on what they sell – what they do.

How dare you write such a biased piece giving helpful and useful advice under the guise of “entertainment”

Disgusted, Sheffield England

Size IS important!

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