Market Sizing
Market Sizing is a common business research method used to figure out how big a market is in terms of money or number of customers. It's like estimating how many pizzas are sold in a city or how much people spend on smartphones each year. Market research professionals use this skill to help companies understand business opportunities and make smart decisions about entering new markets. You might also see this called "market size analysis," "market estimation," or "TAM analysis" (Total Addressable Market). It's a key skill especially valued in consulting firms, market research companies, and business strategy roles.
Examples in Resumes
Conducted Market Sizing studies for retail clients entering Asian markets
Led Market Size Analysis projects for healthcare industry clients
Developed TAM Analysis and Market Sizing models for tech startups
Typical job title: "Market Research Analysts"
Also try searching for:
Where to Find Market Research Analysts
Professional Associations
Online Communities
Job Boards
Example Interview Questions
Senior Level Questions
Q: Can you walk me through how you would approach sizing a new market where little data is available?
Expected Answer: A senior analyst should explain their systematic approach: starting with identifying available data sources, using comparable markets as benchmarks, making reasonable assumptions, and validating estimates through different methods. They should also mention how they'd handle uncertainty and present findings to clients.
Q: How do you ensure the accuracy of your market sizing estimates?
Expected Answer: Should discuss using multiple approaches (top-down and bottom-up), cross-checking data sources, validating assumptions with industry experts, and being transparent about limitations and confidence levels in the analysis.
Mid Level Questions
Q: What's the difference between top-down and bottom-up market sizing?
Expected Answer: Should explain that top-down starts with a large known number (like total population) and narrows it down, while bottom-up builds up from individual units (like average purchase value times number of customers). Should give simple examples of each.
Q: What data sources do you typically use for market sizing?
Expected Answer: Should mention government statistics, industry reports, company financial reports, consumer surveys, and trade associations. Should also discuss how to evaluate the reliability of different sources.
Junior Level Questions
Q: What is market sizing and why is it important?
Expected Answer: Should explain that market sizing helps companies understand the potential value of a market opportunity, which helps in business planning and investment decisions. Should give a simple example like sizing the market for coffee shops in a city.
Q: What basic calculations are involved in market sizing?
Expected Answer: Should be able to explain simple calculations like population × penetration rate × average purchase value, and demonstrate understanding of basic math concepts needed for market estimation.
Experience Level Indicators
Junior (0-2 years)
- Basic data collection and analysis
- Simple market size calculations
- Understanding of data sources
- Report writing and presentation
Mid (2-5 years)
- Complex market analysis
- Multiple sizing methodologies
- Industry expertise
- Client presentation skills
Senior (5+ years)
- Advanced analytical techniques
- Project leadership
- Strategic recommendations
- Mentoring junior analysts
Red Flags to Watch For
- Unable to explain basic market sizing concepts
- No experience with data analysis tools
- Poor understanding of data sources
- Lack of logical thinking in assumptions
- Inability to present findings clearly
Need more hiring wisdom? Check these out...
How Internal Gig Marketplaces Revolutionize Employee Development
Unlocking the Competitive Edge: Benchmarking Your Talent Acquisition Metrics
7 Ways to Maximize Your Candidate Database ROI
