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CH08 P×Qty Derivation Worksheet

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Related Chapter: CH08. From Qualitative to Quantitative — Effective Market Sizing and P×Qty Related MN/KM: MN07 / KM058, KM059, KM062

This worksheet does not create new knowledge. It simply carries over, in worksheet form, the 9-step effective market sizing questions from KM059 and the transaction-type-specific Qty rationale from KM062.

A. 9-Step Effective Market Sizing Checklist (KM059)

StepQuestionNotes
1. Idea & environmental analysisWhat idea did you start from, and what is the market environment like?
2. Segmentation & targetingOn what basis did you segment the market, and which segment are you targeting?
3. Positioning, channel, price (hypothesis)What are your positioning, channel, and price hypotheses for the target customer?
4. Available resource review (Q, D)From a Quality and Delivery standpoint, do you have the resources to execute this hypothesis?
5. Input cost review (C)What does it cost to execute this hypothesis, and is it affordable?
6. Final targetingReflecting the QCD review, which segment are you finally targeting?
7. Final positioning & 4PsWhat are your final positioning and Product, Price, Place, and Promotion (4Ps)?
8. BMC decisionWhat is the final business model (BMC) reflecting the above results?
9. Effective market sizingBased on the finalized business model, what is the effective market size (P×Qty)?

The 9 steps are not a procedure passed through once in order. If the Step 9 result falls short of the business goals or resource conditions, go back to the relevant earlier step and fill it in again.

B. Transaction-Type-Specific P×Qty Rationale Table (KM062)

B2C

ItemDescriptionNotes
P (Price)Product/service price
Qty basis 1Number of target customers (population/pool size)
Qty basis 2Annual consumption volume / purchase frequency
Qty derivation logic“At what price will how many people buy how often”

B2B

ItemDescriptionNotes
P (Price)Unit price structure that varies with order volume
Qty basis 1Order size (whether bulk ordering applies, relationship to fixed-cost structure)
Qty basis 2Upstream industry production output (whether a top-down approach is used)
Supply capacity constraintIn-house production capacity vs. scalability through a co-production partner

B2G

ItemDescriptionNotes
P (Price)Equipment/service price
Qty basis 1Number of potential installation targets
Qty basis 2Whether there is a legal obligation to install/manage
Qty basis 3Budget line item and budget size (executable range)
Qty basis 4Approach (direct sales vs. partner channel)
ConstraintConfirm whether institutional rules and budget set an upper bound on market size

How to Use

  1. Fill out Table A first, working through the full hypothesis-review-finalization flow of the 9 steps.
  2. Fill out the section of Table B that matches your transaction type (B2C/B2B/B2G) to build the concrete rationale for Qty.
  3. Check that the Step 9 result (P×Qty) in Table A is consistent with the rationale in Table B.