5 Market Research and Competitive Analysis Free Online FlashCards

What four elements define a market for research?

Specify the customer, the need or problem, the solution category, and the geography. A focused definition makes estimates and comparisons more useful.

What is secondary research?

Secondary research uses existing sources, such as government statistics, industry reports, company filings, and competitor websites, to establish context and identify gaps.

What should you check before comparing industry datasets?

Use a consistent classification, such as NAICS, and check each dataset’s coverage, definitions, and year before comparing figures.

What does total addressable market (TAM) represent?

TAM is the demand the offering could serve if it could reach the full relevant market.

How does a top-down market estimate work?

A top-down estimate starts with a broad statistic and narrows it using explicit filters.

How do direct competitors differ from indirect competitors?

A direct competitor solves the same problem for similar customers. An indirect competitor meets the same need another way; the current alternative may also be doing nothing.

What forces does Porter’s Five Forces framework examine?

The framework examines rivalry among existing firms, threat of new entrants, threat of substitutes, buyer bargaining power, and supplier bargaining power.

Why isn’t an attractive market enough to ensure a startup opportunity?

An attractive market is not automatically a good opportunity for every startup; the venture also needs a reachable segment and a credible way to compete.

What is primary research?

Primary research collects new evidence for the startup’s question through methods such as interviews, surveys, observations, or small tests.

What does serviceable available market (SAM) represent?

SAM is the part of TAM reachable with the startup’s product, geography, and business model.

What does serviceable obtainable market (SOM) represent?

SOM is the realistic share the startup could win over a stated period, given its capacity and competition.

How does a bottom-up market estimate work?

A bottom-up estimate builds from reachable customers and expected purchases. For example, 2,000 workers ordering 1.5 times weekly for 50 weeks yield 150,000 annual orders.