Traditionally, market sizing can be described as judging the number of users and buyers of a specific service or product.
In accordance with that, a market sizing question is a particular type of case study in which you might include estimating the size of something that has very little or no data available at all.
Market sizing questions are one of the most common in the case interviews at several organizations or firms where an interviewer might ask you several questions related to a product or service.
But if you know how to use the accurate approach to those questions, you can easily be able to answer them by using a few shortcuts and examples.
If you do not have much idea about what is market sizing and how you can deal with that, you can read more below:
What Is Market Sizing Questions
Market sizing questions are the ones that are asked to the candidate in order to estimate the annual size or market size of a particular product or service that might use limited information.
In order to solve or answer the market sizing questions, you would need a great command of problem-solving skills, math, and logic included with the background of the business knowledge.
In several job interviews or in consulting case interviews, these market size questions are the most famous case interview questions.
The market sizing case questions are, most of the time, the first kind of the case that a candidate would be asked in the consulting interviews.
However, these questions seem to be tricky because they are made and structured in a way that they are supposed to have one calculated accurate numerical answer to them.
These guess timing case questions focus on the estimation of the size of the market of a certain product in terms of the number of units that are sold or the annual revenue that I generated.
How to Answer Market sizing Question
Answering the market size questions correctly requires the accurate form of skills and technique to get to the point.
In order to answer these guesstimate questions, the first thing that you would need is to clarify all the unclear items present in the question.
To use the right approach, you would also be required to break the question into 3-5 small and easy to estimate parts.
After you are done parting these questions, you would need to estimate each part using the background knowledge and math as well as the logic of the questions.
The next step would be to build up these parts in order to arrive at the final and end result. But one thing to keep in mind is that even if you are aware of the right numbers, you must not jump to the result as it is the structured approach that is needed all the time.
In order to clarify the problem to find a solution, ensure that you and the interviewer are on the same level about the details of the questions.
When you are in the clarifying process, you would also require to limit the possibilities to only those details that are favorable to you.
The close-ended questions or affirmatives help you to impose the agreeable descriptions to ease out your market size questioning procedure.
While on the other hand, as compared to that, open-ended questions help to take away your control and hand it out to the interviewer that would make the question less anticipated.
So to solve the problem effectively, solving it with some explicit visual aids would aid you a lot. Hopefully, you enjoyed reading this informative article and if you like to learn more, please visit the Career In Consulting Blog.