However, you’ll likely have to determine how you can differentiate your brand and products from the sea of competitors in order to carve out your own spot. If there are many competitors in the market, that’s a sign the market has been validated.
If you’re first to market, you’ll want to do a lot of market research to determine that there is in fact a market interested in your product. What does the competitive landscape look like for your selected product and niche? Are you first to market? Are there already a few competitors or is the market saturated with people selling the same product or targeting the same niche? Combine all these methods with some realistic judgment and you should start to get a good sense of the potential market size of your product idea. This can give you an idea of how many people are searching for your keyword terms and, in return, can also give you a better sense of the market size. Are there no reviews, just a few, or hundreds? Google Trends is a good starting point-not to determine market size, but rather to determine market demand trajectory.įrom there you can also look for your particular product idea being sold elsewhere and look at the number and quality of customer reviews. However, depending on the exact market, a narrow market size potentially can be easier to market to, allowing a company like Daneson to penetrate its market and capture it more cost effectively.ĭetermining exact market sizes is usually impossible for most businesses, but there are some ways to understand market size in a more general way. This narrow market size limits the revenue potential for this business. You can imagine that it takes a pretty discerning and dapper man to purchase exquisite toothpicks.Ī product like this likely has a very narrow market size. But a product that caters to pregnant females between 25 and 40 years old who like punk rock music will likely be too narrow.Įxample: Daneson sells high-end, luxury toothpicks. For example, a product that caters to pregnant females between 25 and 40 years old probably has a sufficient market. Market size can be difficult to determine but with some educated guessing you can probably get a good idea.
Let’s look at each of the criteria in more detail: 1.
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