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Defining and Calculating TAM, SAM, and SOM When it comes to market assessment and sizing, it's important to understand the concept of TAM, SAM, and SOM. These three acronyms are Total Available Market, Serviceable Available Market, and Serviceable Obtainable Market. They are essential tools used by companies to support critical business decisions such as estimating When sizing a market it's essential to understand the concept of TAM, SAM, and SOM.
In calculating market size, one must realize three important facts to avoid an often frustrating experience. First, the exact market size number does not exist. Second, the size estimate is never correct, but directionally accurate is sufficient. Finally, estimating the size of a market is both an art and a science.The only way to calculate In calculating market size, one must realize three important facts to avoid an often frustrating experience. First, the exact market size number does not exist. Second, the size estimate is never correct, but directionally accurate is sufficient. Finally, estimating the size of a market is both an art and a science.