Approaches for Market estimation

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Accepted Answer

Market estimation can be approached through top-down or bottom-up methods, using primary and secondary research data.

Top-down approach involves starting with overall market size and then breaking it down into segments based on available data.
Bottom-up approach involves estimating market size by aggregating data from individual segments or customers.
Primary research involves collecting data directly from target customers through surveys, interviews, etc.
Secondary research involves analyzing existing data sources like industry reports, market studies, etc.
Combining both approaches can provide a more accurate market estimation.
Example: Using top-down approach to estimate total market size and bottom-up approach to estimate market share for a specific product.

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