RESULT OBTAINED
Decision concept
Define a market before looking for its size
What must be established
A useful analysis keeps its controls visible.
- 01
Describe the need and the uses before the product category.
- 02
Include the relevant substitutes and non-market alternatives.
- 03
Set geography, population, period and unit of measure.
Decision reference
Make the next choice more explicit.
DECISION SUPPORTED
Which economic unit is being measured, for which needs, customers, offers and boundaries?
DELIVERABLE TO KEEP
A scope sheet that makes the figures comparable and the exclusions explicit.
NEXT ELEMENT TO EXAMINE
Market sizeExplore →19 · ORIGINAL ASSET
Market boundary equation
Boundary model
The market is defined as the intersection of a need, a buyer, an offer, a geography and the alternatives actually compared.
Download the canvas ↓Need∩Buyer∩Offer∩Geography∩Alternatives
| Dimension | Included | Excluded |
|---|---|---|
| Need | Documenting a strategic choice | Generalist reporting |
| Buyer | Strategy and marketing leadership | Individual use without a decision |
| Offer | Decision tools and methods | Generalist training |
| Geography | France, Belgium, Switzerland | Outside the geographic scope |
| Alternative | Consultancy, spreadsheet, adjacent software | Content without application |
Teaching case · simulated data · no real-world market conclusion.
DECISION SUPPORT METHOD
Market delimitation grid
Defining a market means setting a decision boundary before estimating its size. The grid distinguishes what belongs to the market studied, what constitutes a credible alternative and what remains out of scope. It avoids artificially inflating the opportunity by adding customers, uses or zones that the company cannot serve within the same horizon.
Fill in each row with dated evidence. A category enters the market only if it simultaneously satisfies the use, the buyer, the access and the horizon. Any element that fails a criterion is documented as an exclusion or an adjacent market, then re-examined only if the stated triggering fact becomes observable.
| Boundary | Inclusion test | Decision rule |
|---|---|---|
| Use | The same problem is solved in a comparable situation. | Include only if the substitution is demonstrated by a behaviour or a sourced interview. |
| Buyer | The decision-maker, the budget and the purchasing process are identifiable. | Separate when the decision centre or the budget line changes. |
| Access | The channel, the regulation and the service capacity are available. | Exclude from the accessible market as long as an access constraint has not been removed. |
| Horizon | The offer can be delivered within the chosen decision period. | Classify as an adjacent market if the required capability exceeds the horizon. |
The output is a scope statement covering inclusions, exclusions, unit, zone and horizon. The market size is calculated only after this validation; a change of boundary requires recalculating every dependent estimate.
MOVE FROM ANALYSIS TO YOUR DECISION
Compare my markets using explicit criteria
MOVE FROM ANALYSIS TO YOUR DECISION
Compare my markets using explicit criteria
RETURN TO THE DECISION SYSTEM
See the canonical definition of marketing strategy→