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Technology Stocks : FirstWave Technologies (FSTW)
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To: Oeconomicus who wrote (6938)12/4/2002 10:31:03 AM
From: Bob Trocchi  Read Replies (2) of 9677
 
Bob...

>>addressable market<<

I am one of those guys that people like Dilbert and TED "hate." I was in marketing. I like to think however that I was somewhat more realistic.

When I was at DEC for many years, they had a requirement which in marketing plans that called for your market share of the addressable market. I used to argue that the addressable market share was always 100% and get laughed out of the room. I know I was kidding but think about it.

1. You start with some number of potential customers of a certain size.

2. Then you must reduce that number for the number of customers that you can actually contact

3. Then you must reduce it again for the number of customers who for whatever reason are simply not in the market for a new piece of SW

4. Then you reduce it again for the number of customers that simply decide that they will delay getting a system at the present time and apologize for the lost time you spent preparing a proposal.

5. Then you reduce it again for the number of customers that have been contacted by a competitor who is selling a similar product for a lot less money or that your product simply is not compatible with their other systems.

6. Finally you make a sale and by gosh that is your addressable market!!!

Addressable markets are a useful planning tool to alert you to what you must do to actually play in that market space. It should never be used as a market projection tool or a PR tool IMO.

Cheers and GO FSTW

Bob T.
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