Secondary Market Research: 7 Tips for Effective Market Sizing
Market sizing offers businesses a foundational understanding of the scale and boundaries of a prospective market. Precise assessment of market size empowers companies to pinpoint avenues for growth, foresee challenges from competitors, and customize strategies to meet customer demands.
In this blog, we provide quick tips for one specific method for conducting market sizing using secondary research techniques. While primary research involves direct interaction with sources, such as surveys or polls, secondary research utilizes existing sources like articles, government data, and financial reports. Let’s dig in!
- Understand Market Scope:
Defining the scope of your market is crucial for accurate market sizing. Consider all potential products, services, and suppliers within your defined market to ensure comprehensive coverage. Clear definitions help in determining what to include or exclude from your analysis, ensuring relevance to your specific needs.
- Gather Data from Diverse Sources:
Utilize a wide range of secondary sources to gather market data, including newspapers, journals, websites, financial reports, and government publications. Synthesize information from these sources to paint a comprehensive picture of the market landscape.
- Consider Different Strategies:
There are various approaches to conducting secondary market research. You can opt to conduct research independently, gathering and analyzing data yourself. Alternatively, you can purchase existing reports or hire a market research firm, like SDi, to perform the analysis on your behalf. Each approach has its advantages and drawbacks, so choose the one that best suits your resources and requirements.
- Triangulate Data for Accuracy:
To enhance the accuracy of your market sizing estimates, triangulate data from multiple sources. Publicly available information from annual reports, investor presentations, and government filings can provide valuable insights into company revenues and market share. For privately held companies, look into press releases and newspaper articles.
- Account for Market Segmentation:
Consider market segmentation factors such as geography, industry verticals, or product categories when estimating market size. Segment analysis allows for a deeper understanding of market dynamics and potential opportunities within specific market segments.
- Use Proxies for Missing Data:
In cases where specific revenue data is unavailable, consider using proxies such as employee count or facility size to estimate company revenues. While not as accurate as direct financial data, proxies can provide valuable insights when direct information is lacking.
- Supplement with Primary Research if Necessary:
If detailed insights are required for specific market segments, consider supplementing secondary research with primary research methods such as surveys or interviews. Primary research can provide finer detail and validation for market sizing estimates obtained through secondary sources. Get a step-by-step look at how to approach market sizing by downloading our guide: Secondary Market Research: One Method for Market Sizing. Access the download here.
Conducting market sizing using secondary research techniques requires careful planning, utilization of diverse data sources, and triangulation for accuracy. These tips are a great first step for successful market sizing. If you’re looking for a partner to help you accurately size a market, identify market potential, and inform strategic decisions, contact us today! We’d love to have a consultative conversation to explore your needs and understand how our primary or secondary market research solutions could help you meet your goals.
