Market research

Market Research Patterns

Market Sizing

TAM / SAM / SOM Framework

Level	Definition	How to Calculate
TAM (Total Addressable Market)	Everyone who could ever buy	Top-down: industry reports; Bottom-up: # potential buyers × ARPU
SAM (Serviceable Addressable Market)	Segment you can realistically reach	TAM × % that matches your ICP
SOM (Serviceable Obtainable Market)	What you can realistically capture	SAM × realistic market share in 3-5 years

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

Dimension	Variables	Use When
Demographic	Age, income, education, gender	Consumer products
Firmographic	Company size, industry, revenue, geography	B2B products
Psychographic	Values, lifestyle, personality	Brand-driven products
Behavioral	Usage rate, occasions, benefits sought	Mature markets
Job-to-be-done	What outcome they're trying to achieve	Innovation

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:

Confidence	Margin of Error	Sample Size (Large Population)
90%	±5%	271
95%	±5%	385
95%	±3%	1,067
99%	±3%	1,843

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

Category	Sources
Search trends	Google Trends, Exploding Topics, Semrush Trends
Social signals	Reddit, Twitter/X, LinkedIn, TikTok
Publication trends	Google Scholar, ResearchGate (academic)
Investor signals	PitchBook, Crunchbase category funding
Patent filings	USPTO, Google Patents (R&D direction)
Hiring signals	LinkedIn Jobs, Indeed, Glassdoor
Regulatory	Federal Register, EU publications

PESTEL Framework

Factor	Questions
Political	Regulatory changes, government policy, trade issues
Economic	Interest rates, inflation, recession risk, employment
Social	Demographics, lifestyle shifts, cultural values
Technological	Emerging tech, automation, disruption
Environmental	Climate regulation, sustainability demands
Legal	Compliance requirements, litigation trends

Secondary Research

Data Sources by Category

Category	Sources
Market reports	Gartner, Forrester, IDC, IBISWorld, Statista
Industry data	Trade associations, government agencies (BLS, Census)
Academic	JSTOR, ProQuest, Google Scholar
News	Factiva, Bloomberg, industry press
Company data	Crunchbase, PitchBook, CB Insights
Consumer data	Nielsen, Kantar, YouGov

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)