Startups Stack Exchange Archive

Should Total Available Market figures factor in product ranges such as ‘Cars’ or be limited to specific styles such as ‘Sports Cars’ & ‘Family Cars’?

• posted by: Craig on 2017-08-21
• tagged: marketing, market-research, target-market, market-size
• score: 0

I am working on the ‘Market Research’ section, of a new Business Plan, where my current focus lies on ‘Market Segmentation’.

I want to establish my Total Available Market (TAM), Serviceable Available Market (SAM) and Serviceable Obtainable Market (SOM) figures. I understand the following:

• TAM: Total Market Demand for product across the World.
• SAM: A segment of the TAM, targeted by products, within Geographical area.
• SOM: Portion of the SAM, that can be captured.

Where I am getting a little stuck, lies within the TAM.

Example:

Say I was a Car Manufacturer, whom focused on creating Sports Cars. Would my TAM factor in the entire global market for Cars, where the SAM would then provide further segmentation tailored for Sports Cars, or would my TAM only consider Sports Cars across the Globe?

As a side question, is the SAM segmented solely within a Geographical area or can other Segmentation be used; such as Psychographics and Demographics?

No Answers

There were no answers to this question.

---

All content is licensed under CC BY-SA 3.0.