Mostly products are designed to meet the needs or to solve the problem of a specific audience. For instance, not everyone will be interested in buying organic soap rather than the person who needs it. It explains that targeting the right market is necessary to do the marketing better and to sell the product faster.
For estimating the size of the market you will have to find out the average of the values, customers available in the market and much more. If you are good at mathematics then you can calculate the average manually.
If not then you can get the assistance of an online average calculator by visiting calculator-online.net websites because it offers a free online calculator to help you out. Meanwhile, knowing your customers and the market size helps you to understand which advertisement platform will work precisely for you.
A complete target market estimation is a complete research explaining facts and figures on the basis of sources, charts and graphs to determine why the product of a company will succeed in the market.
Further, the most valuable aspect is the description of the market. Read more to get familiar with the target market estimation and with the benefits of calculating the average.
Doing a target market estimation helps you to find out what advertisement platform you have to use, what products and services you have to offer and what type of message will attract the people to buy the products.
The point of a target market estimation is to:
- Find Gaps in the market.
- Recognize the behavior of the market.
- Informs about the viability of a product or service.
- Helps you to make good business strategies.
5 Essential Steps for Estimating Market Size:
If you are starting a new business and do not have the target market estimation, then you will not be able to create a perfect business plan. The information you gathered through the market estimation provides an idea of the potential value of your product in the market.
Below we have provided five ways for estimating the size of the target market:
1. Identify the Market and define the Target Customers:
In this third step, you have to identify the market and the target audience. In the case of air conditioners you will hit the market where air conditioners are the basic need of the people. For this, you can calculate the average need with the help of a free average calculator.
2. Define the Problem that your Product can Solve:
This is the main step which is neglected most of the time and that ignorance costs heavy loss. So you should resist the jump before clarifying the problem that your product solves.
For example, if you have created an air conditioner which consumes less electrical energy than the similar products available in the market.
Resultantly, you have solved the problem of the people who can not afford high electricity bills. This is a basic example that elaborates the value of targeting the right audience.
3. Estimate the number of Customers:
When you have just started a new business then you can not reach 100% market share. Most of the startups are expected to access one and five percent of their market.
If your product is a pencil then you will have to calculate the average of the customers with the help of a simple average calculator online to determine the number of potential customers. This estimate will help you to determine the size of the market.
In this way, you can easily target the whole market by doing the marketing of your brand. If the market will be short then you will use a cheap and a less famous way to do the marketing.
But if the market is large then you will have to use a famous and more commonly used medium to do the marketing effectively. By doing this you can attract more and more customers towards your brand.
4. Calculate the Market Volume:
Finding out the market volume is crucial to determine the size of the market. Market volume requires you to create the estimate of market penetration. With the help of this figure you can determine your potential market value.
Here is the equation to find out the market volume:
Market Volume = No of target customers x Penetration Rate.
5. Calculate your potential Market Value:
We can easily calculate the market value on the basis of the price that we charge or the profit we make after creating the product.
Market Value = Market Volume x price.
With the help of these figures and the estimated size of the market you can set a position for your startup or business to avail the highest chance for success.
How to use Target Market Estimation?
Before calculating the market size, it’s necessary to have the knowledge to use this figure precisely. Otherwise you will not have the expected output.
There are various ways to use the estimation of the market. But the concise one is to stick with the findings that you have obtained through the estimation. Keep yourself focused on your goals and work according to the findings.
Here we have listed some questions that can be answered by the information gathered through the market estimation:
- What is the potential revenue from a specific market?
- Is the market big enough? Will it be worth it to invest time and money in it?
- Is this a growing market? Whether there will be opportunities after three, five and ten years or not?
Generally, these are the main questions that arise when starting or maintaining a business. In this case, an average value calculator allows you to easily calculate the average so you can use it for estimating the size of the market.
Various benefits are connected with the size of the market. With this figure you can not only know the number of customers available in the market but can also see the future of your company.
Sticking with the facts and figures never lets you be detracked. So you should use them to reach the heights of success. Remember that nothing is impossible, but to reach anywhere you have to keep yourself first on the right track.
How to calculate Average Online?
Follow the below listed easy steps to calculate the average through an online average calculator:
Choose the separator for the values from the drop down menu and add the values.
Now hit the calculate button and wait until the completion of the calculation.
Press the download icon to get the results in PDF format from the average numbers calculator.
When you are going to start a new business then target market estimation is essential to determine whether the market is large enough to be an addressable place for your product or not?
In this way you can know if the product or service you are offering will meet the needs of the market or not? For this you will have to calculate the average at many times.
You can do this calculation by yourself or can get the assistance of a best average calculator to perform the work within seconds.