Market Demand

Chandra S. Mishra
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Chandra S. Mishra: Florida Atlantic University

Chapter Chapter Three in Getting Funded, 2015, pp 55-77 from Palgrave Macmillan

Abstract: Abstract Market potential is one of the critical risks that investors consider when investing in a new venture. An entrepreneur must exercise care when estimating and justifying the addressable market size of a new p roduct. Low-cost market research techniques can be employed to validate the market size and customer demand. Two methods are provided to estimate the addressable market size, namely, the market factor method and the market buildup method. Demand drivers can be used to estimate the segment market size when using the market buildup method. The market maturity level is critical in determining the key challenges and competitive threats. The Bass Model can forecast the demand when introducing a new product category, when historical market data are not available, or the test market results are not reliable. A startup should make its sales and revenue projections based on the revenue drivers and its sales capabilities.

Keywords: Product Category; Market Size; Product Life Cycle; Energy Drink; Gross Domestic Product Growth Rate (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-38450-8_3

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DOI: 10.1057/9781137384508_3

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