1. Great idea Vs Market Opportunity Value
(Leancamp pres @ UCD 23/06/12)
For any comments or questions , you can reach me at conor@smoltmarketing.com
Great Ideas…are just great….but you need to quantify the size of the market opportunity!
(You will need to convince investors, support organisations and early employees that your vision has
significant potential). So, where to start…
Big Numbers; while massive analyst projections are useful, you need to get behind these numbers and
understand how they have been calculated e.g. what growth rates are factored in and more
importantly what budget at prospective customers is being considered (marketing? IT?). Also, its good
to ask early trial customers how and why budgets are being allocated internally to your product/service
area. This will give you some visibility as to the strategic future purchasing intent in the broader market.
WHAT….am I looking for?
Numbers; current and projected market expenditure, Growth rates, Customer population numbers i.e.
how many potential customers are there in the market segment you are targeting. Moreover, what is
the addressable market for my product/service?
WHERE …do I find get these numbers?
- Analyst reports; Gartner, Frost & Sullivan, Forrester. EI has a great info centre.
- Company reports of similar companies;
- Our Search tip; using google, enter company name that you’re researching + gartner.com or
slideshare.net (you can get free magic quadrants, reports and/or slidedecks about your target
market segment).
Basic formula for ‘market opportunity value’ (per annum basis)
= Revenue per unit customer per annum* X 100% customer population in target market