Estimation of Market Size (ATAR Model)


N's spirit Basic MBA > Estimation of Market Size (ATAR Model)

Estimation of Market Size (ATAR Model)

ATAR model is one of logical formulas explained in previous page. ATAR consists of Aware, Try, Available and Repeat.


Formula of ATAR model

Market Size = Number of potential customers * AW * AV * T * R

AW: Rate of recognition of a product or a service
AV: Rate of availability to buy it
T: Trial rate to buy
R: Repeat rate

For example, when AW is 95%, AV is 70%, T is 13% and R is 65%, market share becomes below.

Market share = 0.95 * 0.70 * 0.13 * 0.65 = 5.62%

The following graph shows transitional change by each stage. Normally, ATAR model has huge gap between Available and Try.

ATAR Model

When number of potential customers is 3 million and average spend is 10 USD, market size is as follows.

Market Size = 3 million * 10 USD * 5.62% = 1.69M USD

ATAR model can be replaced by AIDAM Model or AMTUL Model.



Advertisement




<< >>
Marketing
Marketing Process
Segmentation
Positioning
Marketing Mix (4P)
Product Strategy
Pricing Strategy 1
Pricing Strategy 2
Pricing Strategy 3
Pricing Strategy 4
Price Strategy for Service
Innovation of Pricing Model
Channel Strategy
Promotion Strategy
Prevention of Competitor's Imitation
Brand Strategy
B2B Marketing 1
B2B Marketing 2
Estimation of Market Size
Estimation of Market Size (ATAR model)
Estimation of Market Size (Logistic curve)
Estimation of Market Size(BASS model)
Stage Gate System


Advertisement





N's spirit Basic MBA > Estimation of Market Size (ATAR Model)

Copyright (c) N's spirit. since 2004 All rights reserved.