Master the fundamentals of product management, from user research and analytics to strategy, prioritization, communication, and execution.

Learn product management basics through practical lessons in user research, analytics, prioritization, strategy, and execution. Start on web, iOS, or Android.

Product Management Basics

Learn how to leverage AI in product management. Master AI fundamentals, prompt engineering, and practical applications for PMs.

Learn AI for product managers with practical lessons in AI fundamentals, prompt engineering, and everyday PM workflows. Start on web, iOS, or Android.

AI for Product Managers

Learn how to do competitive analysis. Master the fundamentals of competitive analysis and how to use it to make better product decisions.

Learn competitive analysis for product managers with practical lessons in market research and smarter product decisions. Start on web, iOS, or Android.

Competitive Analysis for Product Managers

## Sizing and Segmentation Narrow the Opportunity

Market sizing estimates the potential size of a market, including customers, revenue, or units sold. Market segmentation divides the market into smaller groups based on factors like demographics or behavior.

```productme-visual
{"asset":"resource:assets/content/b726bbe4-8a0c-4649-b9ec-489294e35076/pm-market-segments.visual.json"}
```

The nested areas illustrate a broad market and a more focused target. Their sizes are not revenue estimates.

<h2>Sizing and Segmentation Narrow the Opportunity</h2>
<p>Market sizing estimates the potential size of a market, including customers, revenue, or units sold. Market segmentation divides the market into smaller groups based on factors like demographics or behavior.</p>
<pre><code class="language-productme-visual">{"asset":"/content/b726bbe4-8a0c-4649-b9ec-489294e35076/pm-market-segments.visual.json"}
</code></pre>
<p>The nested areas illustrate a broad market and a more focused target. Their sizes are not revenue estimates.</p>


What is the primary purpose of market sizing?

<p>What is the primary purpose of market sizing?</p>


Market segmentation helps businesses divide a large market into smaller, distinct groups based on shared characteristics.

<p>Market segmentation helps businesses divide a large market into smaller, distinct groups based on shared characteristics.</p>


Estimating how many clinics could buy a product is {{gap}}. Grouping those clinics by their workflows and needs is {{gap}}.

<p>Estimating how many clinics could buy a product is {{gap}}. Grouping those clinics by their workflows and needs is {{gap}}.</p>


## Choose a Relevant Segment

Market sizing and segmentation are vital for identifying opportunities, planning strategies, targeting customers effectively, and allocating resources to the most profitable segments.

```mermaid
flowchart TB
  R["Target segment"]
  N0["Customer need"]
  N0 --> R
  N1["Market opportunity"]
  N1 --> R
```

<h2>Choose a Relevant Segment</h2>
<p>Market sizing and segmentation are vital for identifying opportunities, planning strategies, targeting customers effectively, and allocating resources to the most profitable segments.</p>
<pre><code class="language-mermaid">flowchart TB
  R["Target segment"]
  N0["Customer need"]
  N0 --> R
  N1["Market opportunity"]
  N1 --> R
</code></pre>


Which of the following is NOT a benefit of market segmentation?

<p>Which of the following is NOT a benefit of market segmentation?</p>


Market sizing helps product managers decide if launching a product in a particular market is viable.

<p>Market sizing helps product managers decide if launching a product in a particular market is viable.</p>


## Build the Estimate Step by Step

To conduct market sizing and segmentation: define the market, choose a sizing method, gather data, segment the market, and evaluate segments to select the best ones to target.

```mermaid
flowchart TB
  N0["Define the market"]
  N1["Gather data"]
  N0 --> N1
  N2["Evaluate segments"]
  N1 --> N2
```

<h2>Build the Estimate Step by Step</h2>
<p>To conduct market sizing and segmentation: define the market, choose a sizing method, gather data, segment the market, and evaluate segments to select the best ones to target.</p>
<pre><code class="language-mermaid">flowchart TB
  N0["Define the market"]
  N1["Gather data"]
  N0 --> N1
  N2["Evaluate segments"]
  N1 --> N2
</code></pre>


Which market sizing method starts with broad industry data and narrows down to a specific market?

<p>Which market sizing method starts with broad industry data and narrows down to a specific market?</p>


Demographic segmentation is based on lifestyle and values.

<p>Demographic segmentation is based on lifestyle and values.</p>


## Update Assumptions as Markets Change

Market sizing and segmentation are continuous processes. Regular updates are essential to adapt to market changes and make data-driven decisions.

```mermaid
flowchart TB
  N0["Market estimate"]
  N1["New evidence"]
  N0 --> N1
  N2["Revised estimate"]
  N1 --> N2
```

<h2>Update Assumptions as Markets Change</h2>
<p>Market sizing and segmentation are continuous processes. Regular updates are essential to adapt to market changes and make data-driven decisions.</p>
<pre><code class="language-mermaid">flowchart TB
  N0["Market estimate"]
  N1["New evidence"]
  N0 --> N1
  N2["Revised estimate"]
  N1 --> N2
</code></pre>


Why should market sizing and segmentation be updated regularly?

<p>Why should market sizing and segmentation be updated regularly?</p>


Market segmentation divides customers into groups to better address their unique needs.

<p>Market segmentation divides customers into groups to better address their unique needs.</p>
