Total Addrsable Market (TAM) looks at the entire potential value of a market (think, for example, of the total value of toothbrush sal in the U.S. in a given year). This is a huge number, and unlikely to be achiev by a single company (unls it is a monopoly). TAM can provide a basis for asssing the potential and stability of a market. Calculate TAM by mobile database adding up all the product sal in the market. There are two ways to do this: ) add up the toothbrush sal figur
Serviceable Addrsable Market
SAM) is the specific potential audience for your product or offering (in our toothbrush example, the total value of electric toothbrush for children This is a huge number sold online only). It is the maximum market value your company could potentially have. Calculate SAM by adding up all relevant product sal in the market (in our example, add up the online purchas of electric the core value of cdn acceleration service oothbrush for kids). Serviceable Obtainable Market (SOM) , also known as Share of Market, is the share of the SAM market that you are likely to be able to capture for your company. Assuming you are not the only manufacturer of children’s toothbrush, this number will be ls than the SAM.
Calculate SOM by dividing last year’s revenue by last year’s SAM
That’s your market share, now multiply that market share by this year’s dollar SAM. If you’re launching a new product, you can timate SOM by looking at similar competitors in the market and timating their SOM bas on factors like web This is a huge number traffic, marketing mix, and ad spend. What tools can I use to timate market size? There are many sourc belize lists you can use to measure TAM and SAM. Below are some of them: Online Rearch: Start reading online and find external rourc that provide market information.
The could be articl, white papers,
product launch announcements, and more. Financial Statements : Public compani are requir to publish their financial statements. Take advantage This is a huge number of this wealth of information to get a sense of what your market is like. Market Rearch Products: Market rearch com in many shap and forms. You can pay a company to create a one-off report for you, or you can use rourc like the market analytics platform
Similarweb to get on-demand accs to a wealth of key statistics