Market Opportunities · Sizing · Component

The build-up

The unit calculation: how many, how often, at what price — a number that can be argued with, which is its whole value.

The deliverable

What it is

A figure assembled from a share of a category report cannot be checked, cannot be disagreed with usefully, and is wrong by an unknown amount in an unknown direction.

A unit build-up is three or four numbers multiplied together. Each can be questioned individually, which is what makes the total defensible or correctable.

One level in

What it is made of

Each element is a constituent part of the component. Follow one to see the attributes it carries.

  1. The count

    How many potential customers there are.

    3 attributes: Count · Definition · Source

    Learn
  2. The frequency

    How often each would buy.

    3 attributes: Frequency · Period · Confidence

    Learn
  3. The price

    What they would pay per purchase.

    3 attributes: Price · Segment · Source

    Learn

The definition of who counts is where most sizing error lives. Write it down before multiplying anything.