What are TAM, SAM and SOM?
TAM, SAM, and SOM are acronyms used in marketing and business to represent different components of a market.
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TAM, or Total Available Market, refers to the total size of a market in terms of revenue or unit sales. It represents the maximum potential demand for a product or service in a particular market.
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SAM, or Serviceable Available Market, is a subset of TAM and refers to the portion of the market that a company can effectively target or serve with its products or services.
- SOM, or Serviceable Obtainable Market, is a subset of SAM and represents the portion of the market that a company can realistically expect to capture with its current resources and capabilities. It is the market share that a company can realistically achieve.
Marketing and business professionals often use TAM, SAM, and SOM to assess the potential size and scope of a market, and to develop strategies for targeting and capturing market share.
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