Total Addressable Market (TAM) looks at the entire potential value of a market (think, for example, of the total value of toothbrush sales in the U.S. in a given year). This is a huge number, and unlikely to be achieved by a single company (unless it is a monopoly). TAM can provide a basis for assessing the potential and stability of a market. Calculate TAM by adding up all the product sales in the market. There are two ways to do this: ) add up the toothbrush sales figures for each grocery, drugstore, and retail chain, and ) estimate the number of toothbrushes the average person buys, multiply that by the number of people in America, and then multiply that by the average price of a toothbrush.
Serviceable Addressable Market (SAM) is the specific (in our france telegram data toothbrush example, the total value of electric toothbrushes for children sold online only). It is the maximum market value your company could potentially have. Calculate SAM by adding up all relevant product sales in the market (in our example, add up the online purchases of electric toothbrushes 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 toothbrushes, this number will be less 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 estimate SOM by looking at similar competitors in the market and estimating their SOM based on factors like web traffic, marketing mix, and ad spend. What tools can I use to estimate market size? There are many sources you can use to measure TAM and SAM. Below are some of them: Online Research: Start reading online and find external resources that provide market information.