How to calculate these indicators

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Marketers often face the need to quickly assess the market size. Understanding the market size helps determine the potential of a product or company, plan a marketing strategy and predict growth prospects. Calculating the market size depends on the niche in which the business operates. For example, for construction services, marketers focus on statistics on new housing, the number of square meters of houses already built in the region and the number of households.

For the children's goods market, marketers rely on norway mobile database birth rate statistics and the size of the segments of product users by age. When assessing the dental services market, analysts use data on residents of the region of the appropriate age category, as well as published official data on the income of the population and involvement in the use of paid medical services.

For quick analysis (especially when working with new projects), TAM, SAM, and SOM are used. In this article, we will look at what these terms mean, , and how to evaluate TAM, SAM, and SOM.

The TAM, SAM, and SOM methodology was first described in 2001 by Harvard Business School. The method was originally developed to structure market potential analysis and was used by startups during pitches to investors. The approach has become so popular because it quickly helps to clearly demonstrate the size of the target market and the feasibility of the business idea.