The biggest challenge to identifying IT markets is the lack of detailed IT size data available in the LATAM market. If you hope to identify potential clients that have 10o pc/servers, for example, there are very limited data sources that offer this kind of detail.
One option is to use substitute demographic characteristics based on an understanding of how various types of companies utilize information technology. This report explains an approach for defining markets and estimating market size, in terms of number of companies or potential clients, based on an estimated number of pc/servers Vs. Total Number of Employees in the LATAM marketplace.
Market size data included is based on information provided by Hoovers, BNAmericas as well as my personal research. This information provides a useful introduction to the subject for the purpose of market identification, sizing, Go-to-Market Strategy (GTM)and planning activities for companies mainly in the SaaS industry.
From a high-level, the goal of a marketing strategy is to identify a target market and develop a marketing mix that will appeal to those potential customers. Decisions regarding the ideal marketing mix can be organized in terms of Price, Promotion, Product, and Price. However, the goal is not to just come up with a particular strategy, but rather to focus on providing value to your key market segments.
Understand Common Market Segment Dimensions
There are common market segment dimensions for consumer and B2B markets. For this specify research only B2B Demographics variables were analyzed. The following list shows you sample dimensions that can be used to slice and dice your consumer or B2B product markets. *Be very careful when selecting your dimensions, as these parameters will form the basis for defining your target markets.
- Note: There are thousands of variables that could be used so be sure to carefully select the right dimensions for your market.
B2B Segmentation Criteria
Demographic:
- Annual Revenue
- # Employees
- Industry
- # Locations
- Years in Business
- Markets Served
- Products/Services
- Job Title
- Level of Experience/Seniority
Psychographic:
- Resistance to Change
- Diversification Oriented
- Open Minded/Rigid
- Decision Making Process
- Early Adopter/Follower
- Growth Oriented/Static
- Technology Sophistication
- Professionalism
- Require Referrals
- Awareness of Competitors
- Risk Aversion
- Loyalty
- Market Focused/Product Focused
Behavioral:
- Website Visits
- Responses to Marketing
- Purchasing Methods
- Association Memberships
- Internet Usage
- Social Media Groups
- Collateral Views/Downloads
Environmental:
- Technology Landscape
- Purchasing Power
- Management Practices
- Purchasing Process
- Business Culture
- Note: Once variables have been identified, one can proceed to identify product penetration ratios. In this example, I used Tableau’s data visualization software to explore some data and create the graphs.
RATIOS
| Industry | Sample | PC Ratios | Average # Employees |
| Advertising | 3 | 0.47 | 252 |
| Agriculture, Fishing and Forestry | 198 | 5.42 | 3,174 |
| Broadcast/Cable/TV/Radio | 40 | 1.15 | 2,392 |
| Construction/Engineering/Management services | 118 | 5.71 | 6,217 |
| Distribution/Wholesale | 59 | 3.06 | 2,380 |
| Distribution/Wholesale (Petrochemicals) | 101 | 2.03 | 2,179 |
| Education | 252 | 1.97 | 2,336 |
| Financial Services | 156 | 1.29 | 5,306 |
| Government | 598 | 2.54 | 6,463 |
| Healthcare | 149 | 2.83 | 2,548 |
| Hospitality/Food Services | 140 | 5.94 | 4,764 |
| Manufacturing | 401 | 2.88 | 2,279 |
| Media/Entertainment/Arts | 4 | 0.00 | 710 |
| Mining | 45 | 2.52 | 2,928 |
| Non-Profit/Charity | 1 | 0.00 | |
| Online Commerce | 1 | 0.71 | 1,062 |
| Other | 12 | 1.59 | 2,391 |
| Pharmaceuticals/Biotech | 53 | 1.45 | 1,563 |
| Printing/Publishing | 3 | 0.33 | 600 |
| Retail | 257 | 3.10 | 4,318 |
| Services | 165 | 3.80 | 5,050 |
| Technology/High Tech | 132 | 2.13 | 3,130 |
| Telecommunications | 13 | 3.80 | 16,998 |
| Transportation | 123 | 4.04 | 3,179 |
| Utilities | 103 | 1.89 | 2,691 |
| Grand Total | 3134 | 3.02 | 4,024 |
LATAM MARKET OPPORTUNITY
I am hoping this overview of the PC/Server Market in the LATAM region will serve as the starting point for estimating the market size.
Time Value of Marketing
Once the appropriate market has been defined and the size of the market established, a market coverage strategy can be developed based on the various sales or marketing techniques and media that are to be used. The Time Value of Marketing is simply the process of focusing resources on the most promising accounts in the most timely manner. In addition to an overall market coverage strategy, even with an accurately targeted market, there is often still the opportunity to prioritize market data so that the immediate focus is on the most promising accounts.
Diana Esparza
Diana Esparza 