Market Research

Market Research Patterns

Market Sizing

TAM / SAM / SOM Framework

Top-Down Sizing

Example: B2B Project Management SaaS

Industry report: Global PM software market = $6.5B (2024)
Growing at 13% CAGR
Target segment: SMBs (10-500 employees) = ~40% of market
Geographic focus: US + UK = ~35% of global

TAM = $6.5B × 40% × 35% = $910M
SAM = $910M × 60% (tech-enabled SMBs) = $546M
SOM = $546M × 2% (Year 3 target share) = $10.9M

Bottom-Up Sizing

Target buyer profile: Marketing directors at B2B SaaS companies

US B2B SaaS companies: ~25,000 (CB Insights)
Companies with 50-500 employees: ~8,000 (60% have marketing director)
Marketing directors: ~4,800

Qualified: ~30% would buy this category = 1,440 buyers
ACV: $8,400/year

SAM = 1,440 × $8,400 = $12.1M

Market Segmentation

Segmentation Dimensions

Segment Evaluation Criteria

Score each segment 1-5:

• Size — How large is the segment?
• Growth — Is it growing?
• Accessibility — Can you reach them efficiently?
• Profitability — Will they pay enough?
• Fit — Does your product solve their job well?
• Competition — How crowded is this segment?

Primary Research Methods

Interviews (Qualitative)

Best for: Uncovering unknown unknowns, deep motivations, job-to-be-done discovery

Sample size: 10-15 per segment (saturation usually occurs by 12)

Interview guide structure:

1. Warm-up (5 min)
   "Tell me about your role and what a typical week looks like"

2. Current state (15 min)
   "Walk me through how you currently handle [problem area]"
   "What does that process look like step by step?"
   "What's the hardest part about that?"

3. Exploration (15 min)
   "Tell me about the last time [problem] happened"
   "What did you do? What tools did you use?"
   "What did you wish existed?"

4. Wrap-up (5 min)
   "Is there anything I didn't ask that you think is important?"
   "Who else should I talk to?"

Surveys (Quantitative)

Best for: Validating hypotheses, quantifying segment size, NPS, willingness to pay

Minimum sample sizes:

Focus Groups

Best for: Exploring reactions to concepts, messaging testing, creative exploration

Structure:

• 6-10 participants per group (not friends/colleagues)
• 90-120 minutes
• Trained moderator (avoid leading questions)
• Observe from behind glass or recording
• Run 3+ groups for statistical validity

When NOT to use focus groups:

• Sensitive personal topics (use 1:1 interviews)
• Complex technical evaluation (use usability tests)
• When dominant personalities will skew discussion

Trend Analysis

Trend Detection Sources

PESTEL Framework

Secondary Research

Data Sources by Category

Source Credibility Checklist

• Who published it and what's their methodology?
• When was it published (is it still relevant)?
• What's the sample size and how was it collected?
• Are there conflicts of interest?
• Can findings be cross-referenced with another source?

Research Report Structure

Executive Summary (1 page)

• Market size and growth rate
• Key segments and sizing
• Top 3 trends
• Strategic implications

Full Report Structure

1. Executive Summary
2. Methodology
3. Market Overview
   - Market definition and scope
   - Market size (TAM/SAM/SOM)
   - Growth rate and forecast
4. Segmentation Analysis
   - Segment definitions
   - Segment sizing and attractiveness
   - Recommended target segments
5. Trend Analysis
   - Top 3-5 trends driving change
   - Opportunities and threats
6. Competitive Landscape
   - Key players
   - Market share estimates
7. Customer Insights
   - Key pain points
   - Decision criteria
   - Willingness to pay
8. Strategic Recommendations
9. Appendices (raw data, survey instrument, interview notes)