https://handbook.gradientmetrics.com/products/market-sizing/ Recent content in Market Sizing Analysis on Handbook Hugo -- gohugo.io https://handbook.gradientmetrics.com/products/market-sizing/what-is-market-sizing/ Mon, 01 Jan 0001 00:00:00 +0000 https://handbook.gradientmetrics.com/products/market-sizing/what-is-market-sizing/ TAM, SAM, and SOM Overview Example of each phase for Oatly When to Propose a TAM, SAM, and/or SOM Market Evaluation Market Segmentation Competitive Analysis Resource Allocation Goal Setting Market Sizing in Action Examples Launching a new product Entering a new market For many of our clients, it is essential they understand the size of their market. https://handbook.gradientmetrics.com/products/market-sizing/methods-measuring-tam/ Mon, 01 Jan 0001 00:00:00 +0000 https://handbook.gradientmetrics.com/products/market-sizing/methods-measuring-tam/ Top-Down Approach Bottom-Up Approach Value Theory Approach The Market Share Approach There are four broad methods of measuring TAM. As a company, we are most prepared to use the Bottom-Up approach. For that reason, I only briefly explain the other three methods (for more information on the pros and cons of each method, see a few useful resources here): Top-Down Approach This method estimates TAM by using industry reports and studies to calculate the total market size (for examples, see here and here). https://handbook.gradientmetrics.com/products/market-sizing/implement-tam-sam/ Mon, 01 Jan 0001 00:00:00 +0000 https://handbook.gradientmetrics.com/products/market-sizing/implement-tam-sam/ Step-by-Step Process Step 1: Define the product/service Step 2: Define the market Step 3a: Develop sampling criteria Step 3b: Develop survey questions Survey Questions for TAM Demographic & Market Specifics Identifying Potential Buyers Frequency of Purchases Survey Questions for SAM Specific Purchase Behaviors Willingness-to-Pay Step 4: Administer the survey Using our typical survey methods, we can relatively easily calculate a TAM, and with some agreed-upon criteria with a client, a SAM. https://handbook.gradientmetrics.com/products/market-sizing/analyzing-tam-sam-data/ Mon, 01 Jan 0001 00:00:00 +0000 https://handbook.gradientmetrics.com/products/market-sizing/analyzing-tam-sam-data/ TAM Step 1: Define the total addressable market (TAM) for your product or service Step 2: Calculate the TAM Via Quota Groups Step 2a: Determine the size of each demographic segment in the TAM Step 2b: Determine the revenue potential for each customer segment Step 2c: Sum the revenue potential for each customer segment SAM Step 1: Define the serviceable available market (SAM) for your product or service Calculating Market Penetration and Average Expenditure via WTP Step 2: Calculate the SAM Via Quota Groups Step 2a: Determine the size of each demographic segment in the SAM Step 2b: Determine the revenue potential for each customer segment Step 2c: Sum the revenue potential for each customer segment TAM Step 1: Define the total addressable market (TAM) for your product or service This is the total market demand for the client’s product or service, regardless of any existing competition or market share. https://handbook.gradientmetrics.com/products/market-sizing/market-sizing-reference/ Mon, 01 Jan 0001 00:00:00 +0000 https://handbook.gradientmetrics.com/products/market-sizing/market-sizing-reference/ The best overall guide comes from Michael W Silverman. Differences between TAM, SAM, and SOM From the Power MBA From Hubspot Pros and Cons of Different Market Sizing Approaches From Cognism From Antler From Towards Data Science From Kadence Example Calculations From Toptal From Market Research Methods From beeso.io From Hubspot From Pear