For market sizing, what is the starting point before breaking it down into relevant proportions?

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The starting point for market sizing is the total population. This is because understanding the overall population provides a broad context for determining the potential market size. From the total population, one can identify and segment the market into relevant subsets, such as target markets or total segments. This foundational data allows marketers to assess the potential customer base before further analysis into specific demographics, purchasing behaviors, or other characteristics relevant to the target market.

By starting with total population, marketers can evaluate the maximum potential users or customers within a given market and then calculate more refined estimates, such as the target market or specific segments that are likely to buy the product or service being offered. This method ensures that market sizing is grounded in reality and reflects the largest group of potential consumers before digging deeper into segmentation.

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