Business – 3.2 Market research – Purposes | e-Consult
3.2 Market research – Purposes (1 questions)
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Answer: Market size is the total volume or value of sales of a product or service within a defined market over a specific period.
- Top‑down approach: Start with macro‑economic data (e.g., total industry revenue) and apply relevant segmentation percentages to estimate the portion that applies to the target market.
- Bottom‑up approach: Aggregate the potential sales of individual customers or units (e.g., number of households × average spend) to build up an estimate of total market demand.