Market Sizing Methodologies: Public vs. In-House Approaches PPT

This PPT slide, part of the 407-slide Complete Business Frameworks Reference Guide PowerPoint presentation, presents a structured overview of market sizing methodologies, emphasizing 2 primary approaches: utilizing publicly available data from third-party sources and creating in-house approximations when such data is not accessible. The flowchart format clearly delineates these 2 paths, making it easy to understand the decision-making process involved in market sizing.

For publicly available data, the slide suggests a straightforward approach, leading to a financial outcome represented by a dollar sign. This indicates that leveraging existing data can yield quick insights into market size without extensive resource allocation.

In contrast, when third-party data is not publicly available, the slide introduces a more complex process that involves creating an in-house approximation. This requires the use of component data and proxies, along with necessary assumptions. The flowchart branches into 2 distinct methodologies: "Top down" and "Bottom up." The "Top down" approach is represented by a formula (x + y + z), suggesting a method that aggregates larger market indicators to estimate size. The "Bottom up" approach, indicated by another formula (a + b + c), likely involves a more granular analysis, starting from individual components to build up to a total market size.

The concluding remark highlights the rarity of obtaining direct market size estimates from third-party sources, underscoring the necessity of these methodologies. This slide serves as a valuable guide for executives seeking to understand the nuances of market sizing and the implications of data availability on strategic decision-making.

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