Chapter 5 (Part 4): Market Size and Marketing

Market Size

Refers to the aggregate number of possible buyers of a product and/ or service in an industry and the aggregate revenue that these sales may produce over the course of a year.

Potential Available Market

The total possible value that represents the global market of products and/or services sold over a definite timeframe without any limits of geography and other factors. This assumes the 100% market share.

Total Available Market

The potential value of product and/or service sold to a particular customer segment. This shows the number of customers in the core market around the world who are in need of the entrepreneurs product and/or service offering.

Serviceable Available Market

The subset customer of the total addressable market (TAM) who can be reached and ready to buy goods or services using a one revenue stream/channel.

Serviceable Obtainable Market

This is the subset of the SAM that will realistically get to use a product and/or avail of the service. This is the target market who the entrepreneur shall primarily sell to.

Top Down

A market sizing approach, normally completed by using demographics such as company size, industry type, location, population, age, income and others. It requires the determination of an existing dependable top-line demand estimate.

Bottom Up

A market sizing approach, only considered if there are no dependable sources of top-line demand present. However, if this approach can give a more dependable estimate though analysis of product consumption in relation to a direct indicator (the product being consumed) then this can be useful.

Entrepreneurial Marketing

More about a marketing spirit that distinguishes itself from traditional marketing practices. This type of marketing for entrepreneurs avoids many of the fundamental principles of marketing are usually aimed for big and well-known companies.

Relationship Marketing

The emphasis of this marketing strategy is on building a solid connection between the brand and the customer.

Expeditionary Marketing

This marketing strategy involves forming markets and creating innovative products. Here the entrepreneur's company acts as a leader rather than a follower.

One to One Marketing

In this marketing strategy, customers are marketed to as individuals. All marketing efforts are tailor-fitted.

Real Time Marketing

This marketing strategy makes use of the power of technology to interrelate with a customer in an actual time.

Viral Marketing

This marketing strategy places marketing messages on the Internet like Facebook and Instagram so they can be shared and expanded on by customers.

Digital Marketing

This marketing strategy considers leveraging the power of Internet tools like e-mail and social networking to back-up marketing efforts.

Customer Intensity

This feature concentrates on the enthusiasm, passion, zeal, and belief in marketing that makes the company successful.

Continuous Innovation

An entrepreneurial company must constantly create innovative ideas and transform them into new or improved products and/or. services or processes.

Strategic Flexibility

An entrepreneurial company must display an enthusiasm to always evaluate and fine-tune its strategies, action plans, techniques of resource allocation, structure, culture, and management systems.

Calculated Risk-taking

Risk-taking refers to pursuing novel opportunities. Entrepreneurs take calculated risks, but some can be serious for the future of the company.

Proactiveness

Entrepreneurs are conscious of the significance of the external. marketing environment; however, they do not take it as a given.

Resource Leverage

Entrepreneurs' ambitions usually go beyond their resources; hence they are obligated to utilize their resources in the best possible way. They control their resources so that they ca use them longer than others have used them in the past.

Personal Brand

One that differentiates an entrepreneur from the rest of his competitors. This type of branding forms a lasting impression on the minds of the customers about the quality of his product and/or service.