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Sizing the market is an essential but often overlooked step in the Marketing process.
A pragmatic and methodical approach to defining the market opportunity allows the accurate setting of expectations and sets the organization up for success--if we do 1, 2 and 3, we will get from Point A to Point B.
A quick look at the US Market provides insight into the number of companies (by revenue and employees) and a macro segmentation of enterprise, mid-market and SMB.
Defining the total available market, served market, target market and test market will allow a laser focus for allocating your resources (people and dollars) and that will support a land and expand strategy.
Internalizing this information is accomplished by sizing the market opportunity, in terms of revenue for your organization. ideally, this will show by segment how many deals and the corresponding revenue. The resulting revenue represents the dollars that would be realized with full penetration, however, the technology adoption curve provides insight into the rate that the organization will penetrate the market.
To make this real to an organization, the market opportunity needs to be filtered by the adoption curve and then broken down by an organization's market segments.
Finally, the projections need to be presented by revenue category (segment, geography, product, etc) by quarter.
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