Enterprises may engage in marketing activities to sell products or services to customers. In order make decisions regarding how and where to focus marketing efforts, an enterprise may review market information indicating the demand for any given product or service in an industry in a country. The enterprise may attempt to determine the revenue opportunity, such as the total addressable market (TAM), to analyze the potential demand or opportunity to generate revenue via sales of a given product or service to a company within an industry in a country.
Certain examples are described in the following detailed description and in reference to the drawings, in which:
The subject matter disclosed herein relates to determining the demand of a company within a country and an industry. The company may be a customer of a user of the system described below. The user may have an interest in selling products or services to the company. Company-level opportunity indicating the company's potential demand to buy a product or service of the user may be helpful in effectively allocating marketing resources. The techniques described herein relate to determining the integrated market size of an industry within a country based on data that lacks both these granularities and determining company-level demand estimate within a given industry and a given country.
An “industry,” as referred to herein, is a vertical market within an industry, trade, profession, or other group of customers with specialized needs. A vertical market is a market in which vendors offer good and services to address specialized needs of the industry. Vertical markets are focused on a single niche, such as creating payroll software for start-up Internet companies, for example.
The storage device 104 may include an operating system 116. The operating system 116 may be executed by a processor of a host computing system such as the processor 102 of the computing device 101. The storage device 104 may include a market estimation engine 110. The market estimation engine 110 may be a set of instructions stored on the storage device 104. The instructions, when executed by the processor 102, cause the computing device 101 to perform operations. The instructions may include code to direct the processor 102 to determine a market size for an industry within a country. The instructions may include code to direct the processor 102 to determine a demand for a company within an industry.
As indicated by
The processor 102 may be a main processor that is adapted to execute the stored instructions. The processor 102 may be a single core processor, a multi-core processor, a computing cluster, or any number of other configurations. The processor 102 may be implemented as Complex Instruction Set Computer (CISC) or Reduced Instruction Set Computer (RISC) processors, x86 Instruction set compatible processors, multi-core, or any other microprocessor or central processing unit (CPU).
The memory device 106 can include random access memory (e.g., SRAM, DRAM, zero capacitor RAM, SONOS, eDRAM, EDO RAM, DDR RAM, RRAM, PRAM, etc.), read only memory (e.g., Mask ROM, PROM, EPROM, EEPROM, etc.), flash memory, or any other suitable memory systems. The main processor 102 may be connected through a system bus 122 (e.g., PCI, ISA, PCI-Express, HyperTransport®, NuBus, etc.) to the network interface 108. The network interface 108 may enable the computing device 101 to communicate, via the network 112, with the one or more databases 114. In some examples, the databases 114 may include third party vendor databases storing data related to market size for an industry in a country cluster including multiple countries, market size for a country, a gross domestic product of a country, and the like. In other examples, the databases 114 may be internal data of a business or user of the system 100 and may include data indicating a past revenue that has been generated for the user based on previous sales to a company from the user.
Although
The block diagram of
Market size data 204 may include data indicating a market size for countries or industries but not both together. For instance, the market size data may indicate that the demand, or market, for France across multiple industries is 100 million dollars. The market size data 204 may also include a country cluster level industry market size indicating the demand associated within one industry across the country cluster that includes a plurality of countries. For example, the market size for an automobile industry may be 50 million dollars within Europe, wherein Europe may include a plurality of countries such as France, Spain, Italy, and the like.
A “country,” as referred to herein, is a region identified as an entity in political geography. A country may be an independent sovereign state or one that is occupied by another state, as a non-sovereign or formerly sovereign political division, or a geographic region associated with sets of previously independent or differently associated peoples with distinct political characteristics. In some examples, a country may be a group of countries within a country cluster. In this example, the country cluster contains more than one group of countries within a country cluster. For example, a country cluster may be identified as Europe wherein the United Kingdom Islands are a group of countries including the United Kingdom, Ireland, Scotland, and the like. In either example, a country includes a region having an identifiable GPD, or similar metric, to enable granulated data to be derived as discussed in more detail below in reference to
A “country cluster,” as referred to herein, is a geo-political area including a plurality of countries. For example, a country cluster may include Europe, North America, South America, Asian Pacific, etc., wherein each of the regions contains a plurality of sovereign countries. In some examples, a country cluster is defined by the sources of country cluster data. The sources of the country cluster data may include enterprises that monitor country cluster data such as the total demand of a country at a horizontal market level. Therefore, the third party may define what qualifies as a country based on internal guidelines of the third party. In some examples, a country cluster is defined by an administrator of a system, such as the computing system 100 of
Company level data 206 may include the number of employees employed by a company, historical revenue generated by the company, and the like. Company level data 206 may include firmographic data. Firmographic data, as referred to herein, is data indicating quantifiable statistics of an organization. For example, firmographic data may include number of locations, location of headquarters, and the like.
Internal data 208 may include a provided revenue value. A provided revenue value, as referred to herein, is revenue provided to the user of the system 100 of
As illustrated by
As illustrated in
Initially, the xi's are allocated by splitting the industry totals based on a ratio of one countries' gross domestic product (GDP) for the corresponding industry to the aggregate value of the GDP's for the same industry of all countries listed in the table. As illustrated in table 300B, the value of x1 equals 19 million based on a GDP ratio of France's GDP for the Automotive industry to an aggregate value of the GDPs' of the Automotive industry of all the countries listed in the table 300B. However, market size for a product or services is not necessarily proportional to the GDPs' and hence do not match the country totals listed in the columns 302 and 304 of table 300A, respectively, as illustrated by the box 306 and the box 308. For example, the sum of the variables xi in the column for France in table 300A is 300. However, the sum of the variables in table 300B, wherein the xi's have been allocated based on a GDP ratio, is 196. Therefore, the GDP ratio allocation is minimized to ensure that the values in column 302 and the values in row 304 remain unchanged.
In some examples, a different macroeconomic factor other than GDP is used to determine an integrated market size for a country and industry combination. For example, rather than GDP a wholesale price index (WPI) or an industrial production index (IPI), or any combination thereof may be used.
As illustrated in table 300C of
In Equation 1, the variable xi is the value to be determined indicating the market size for an industry and country combination. The variable gi is the corresponding estimate as obtained using the country and industry GDP proportions as shown in table 300B. The variables m and n are the number of industries and number of country clusters, respectively. Equation 1 is subject to the limitations discussed below with respect to Equations 2 and 3:
In equations 2 and 3, ci (i=1, 2, . . . n) is the variable denoting the country market size as shown in row 304 of table 300A and 300C. The variable vj (j=1, 2, . . . m) is the industry market size as shown in column 302 of tables 300A and 300C.
In some examples, the system of equations including Equation 1 having the limitations of Equation 2 and Equation 3 may be solved by various numerical algorithms. For example, the system of equations including Equations 1-3 may be solved by a first order derivative based algorithm such as a Conjugate Gradient Method algorithm. The system of equations including Equations 1-3 may also be solved via a second order derivative based algorithm such as a Trust Region Method algorithm. The solution of the system of Equations 1-3 provides an integrated market size wherein the market size for an industry and a country is determined. As discussed in more detail below in reference to
The company level demand for a company within an industry and country combination is based on multiple factors. The factors include an employee value indicating the number of employees of the company. The factors may also include a company revenue value indicating a revenue of the company. The factors may also include a provided revenue value indicating a revenue provided to a user based on a relationship between the user and the company. In some examples, various other factors may be used depending on business justifications. The values of each factor may be stored in a database, such as one of the databases 114 of
The company level demand is a range of demand values comprising a maximum demand value and a minimum demand value. The range of the company level demand is determined based on ranges associated with the factors discussed above. Thus, the company level demand may be a range based on the employee value factor, a range based on the company revenue value factor, or a range based on the provided revenue value factor. The range based on the employee value factor is illustrated in Equation 4:
In Equation 4, α is a variation constant that lies between 0 and 1, ei is the number of employees in the company, M is the market size of the corresponding industry and country combination as obtained from solving Equations 1-3, E is the total number of employees in all the companies within that industry and country combination, and yi is the company level demand to be estimated. In Equation 4, yi—the company level demand—has a lower bound, l1i, and upper bound, u1i, wherein l1i≦yi≦u1i.
The range based on the company revenue value factor is illustrated in Equation 5:
In Equation 5, α is a variation constant that lies between 0 and 1, ri is the revenue of the company, M is the market size of the corresponding industry and country combination as obtained from solving Equations 1-3, R is total revenue of all the companies within the same industry and country combination, and yi is the company level demand. In Equation 5, yi—the company level demand—has a lower bound, l2i, and upper bound, u2i, i.e., l2i≦yi≦u2i.
The range based on the provided revenue value factor is illustrated in Equation 6:
In Equation 6, si is the revenue provided to the user based on the relationship of the user and the company. In other words, si is the revenue generated based on products and services that have been sold to company by the user. Equation 6 includes β which is a ratio indicating a predetermined maximum that is intended to limit the possible company level demand. In this assumption, the ratio may be predetermined by a user or an administrator of a system, such as the system 100 discussed in
The company level demand is based on a unified range derived by combining the ranges associated with the factors discussed above. The unified range has as a maximum demand value that is the lowest maximum of any range, and wherein the unified range has a minimum demand value that is the highest minimum of any range.
L
unified=max(l1i, l2i, l3i) Eq. 7
In Equation 7, Lunified is the lower bound of the unified range and is equal to the maximum lower bound of the employee value factor range 402, the company revenue value factor range 404, and the provided revenue value factor range 406 discussed above in reference to
U
unified=min(u1i,u2i) Eq. 8
In Equation 8, Uunified is the upper bound of the unified range and is equal to the minimum upper bound of the employee value factor range 402 and the company revenue factor range 404.
In some examples, the administrator of a system, such as the system 100 of
The unified range 502 includes any overlap occurring between all of the ranges 402, 404, and 406 discussed above in reference to
L
unified=max(mean(l1i,l2i,ladmin)) Eq. 9
In Equation 9, Lunified is lower bound of the unified range and is equal to the maximum of the mean of the lower bounds of the employee value factor range 402, the company revenue factor range 404, the provided revenue value range 406 discussed above in reference to
U
unified=min(mean(u1i,u2i,uadmin)) Eq. 10
In Equation 10, Uunified is upper bound of the unified range and is equal to the minimum of the mean of the upper bounds of the employee value factor range 402, the company revenue factor range 404, the provided revenue value range 406 discussed above in reference to
The company level demand determined in view of the Equations 4-10 above, may be formulated as a quadratic optimization as shown in Equation 11:
In Equation 11, yi is the company level demand and M is the total market size of the corresponding industry and country combination as obtained by solving Equations 1-3. Further, yi is subject to the upper and lower bounds discussed above such that li≦yi≦ui. The system of equations including Equations 4-11 may be solved by either a first order or a second order derivative based algorithm including Quasi-Newton Raphson method, the Trust Region method, and the like.
Estimating the company level demand may be scaled and reproduced to do the same for a plurality of different companies in a given industry and country combination. Further, the system discussed above quantitatively expresses the company level demand and may inform decisions made by users of the system in regard to marketing efforts.
The demand in a company based on any one factor is a range of values comprising a maximum demand value and a minimum demand value. Therefore, the method 600 may include determining a range based on the employee value factor, determining a range based on the company revenue value factor, determining a range based on the provided revenue value factor, and determining a unified range. The unified range is a range that has as a maximum demand value that is the lowest maximum of any range. The unified range is also a range that has a minimum demand value that is the highest minimum of any range.
In some examples, the method 700 illustrated in
The present techniques are not restricted to the particular details listed herein. Indeed, those skilled in the art having the benefit of this disclosure will appreciate that many other variations from the foregoing description and drawings may be made within the scope of the present techniques. Accordingly, it is the following claims including any amendments thereto that define the scope of the present techniques.
Filing Document | Filing Date | Country | Kind |
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PCT/US13/41879 | 5/20/2013 | WO | 00 |