University of Melbourne · FACULTY OF MARKETING

MKTG90022 Chap.2 Market Analysis and Access

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Chapter 2 of 8 · MKTG90022

Market Analysis and Access

Market analysis converts a broad need into a defined and reachable commercial opportunity. Identify the user, buyer, payer and decision maker; describe the current alternative; and specify the evidence required for adoption. Market access then maps how approval, procurement, payment and implementation occur. Top-down estimates filter a published total, while bottom-up estimates build from identifiable customers, use and price.

Comparing both exposes assumptions. A credible estimate is a range with definitions and validation priorities, not a large number detached from the route to purchase. Segmentation should use conditions that affect buying and use, such as workflow, evidence standard, budget ownership, geography or technical capability.

Competitor analysis then compares alternatives on the dimensions that influence switching rather than declaring the new product superior. Interviews are most useful when they examine present behaviour, recent decisions and implementation barriers. Praise for an idea is weaker than evidence about approval, trial, procurement or payment. Each new observation should update an assumption register and the reachable scenario.

The aim is not to remove all uncertainty before action. It is to identify the uncertainty most capable of changing the launch decision and choose a test that produces relevant evidence at proportionate cost.

In this chapter

What this chapter covers

  • 01

    Separate user, buyer, payer and approver

  • 02

    Define customer segments by use conditions

  • 03

    Narrow total demand to reachable demand

  • 04

    Build top-down and bottom-up estimates

  • 05

    Compare competitors on switching dimensions

  • 06

    Test access and adoption assumptions

Worked example · free

Estimate a reachable launch segment

Q [5 marks]. The mark allocation used here is not an official university assessment scheme. A channel can reach 90 eligible plants. Use an assumed 30% adoption rate and $18,000 annual contract value to build a launch scenario.
  • 2Calculate 90 multiplied by 30% to obtain 27 expected adopting plants.
  • 2Multiply 27 by $18,000 to obtain $486,000 annual scenario value.
  • 1Identify channel capacity, adoption and price as assumptions requiring evidence.
The scenario value is $486,000 per year. It is not a forecast until the channel reach, adoption response and contract value are validated with relevant buyers and procurement stakeholders.
Sia tip — Write the customer unit beside every market number so the denominator cannot drift.
Glossary

Key terms

Market Segment
A customer group sharing relevant needs, buying conditions or use characteristics.
Market Access
The path through approval, procurement, payment and use.
Reachable Market
The customers that a realistic channel and evidence package can address.
Adoption Assumption
An explicit estimate of the share expected to begin using an offering.
Bottom-up Estimate
A market estimate built from customer counts, usage and price.
FAQ

Market Analysis and Access FAQ

Why separate the user from the buyer?

The person using a product may not approve, procure or pay for it, so each stakeholder can require different evidence and create a different barrier. This distinction shapes the next market test.

What makes a market estimate credible?

A credible estimate defines the customer unit, geography, time period, adoption logic and price, then tests the assumptions with independent evidence. This distinction shapes the next market test.

How should competitors be compared?

Compare competitors on dimensions that influence switching, such as performance, workflow, validation, price, access and service, rather than using unsupported better-or-worse labels. This distinction shapes the next market test.

What should be tested first?

Test the assumption with the greatest ability to change the commercial decision, often buyer access, implementation burden, adoption threshold or willingness to pay. This distinction shapes the next market test.

Study strategy

Assessment move

Start by writing four separate stakeholder cards for the user, buyer, payer and approver. On each card, record the outcome valued, present alternative, evidence required, switching burden and authority over adoption. If one person holds several roles, keep the questions separate so incentives do not disappear. Define a first customer segment using observable use conditions rather than a broad industry name.

Build a top-down estimate by stating the published starting total and every filter applied. Beside it, construct a bottom-up scenario from the number of identifiable customers, reachable share, adoption assumption, frequency and annual value. Use a different colour for sourced facts, reasoned assumptions and arithmetic outputs. When the estimates diverge, do not average them automatically.

Locate the definition, adoption or price assumption that explains the gap and design a validation step. Create a competitor matrix with dimensions that influence switching: performance, workflow, validation, price, procurement, service and implementation. Replace any cell saying better with a measurable comparison or an explicit unknown.

Then prepare interview prompts that ask about past behaviour, current workflow and decision criteria instead of requesting praise for a proposed idea. After each interview, update the assumption register and record whether the evidence raises, lowers or leaves unchanged the reachable case. Practise one calculation under time pressure and finish it with a sentence explaining what the number does and does not represent.

Finally, write a market-access sequence from awareness through technical evaluation, approval, procurement, payment, implementation and repeat use. Assign the relevant stakeholder and evidence to every step. Your closing recommendation should name the first reachable segment, the access bottleneck and the next commercial test.

This routine prevents a large total market from masking the practical work needed to reach an actual buyer.

Working through Market Analysis and Access in MKTG90022? Sia is AskSia’s AI Marketing tutor — ask any MKTG90022 Market Analysis and Access question and get a clear, step-by-step explanation grounded in how MKTG90022 is taught and assessed. Read this chapter free, then take your hardest questions to Sia.

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