TAM SAM SOM Methodology: what is it?
Posted: Sat Apr 05, 2025 9:16 am
Let's analyze: within a company, many aspects are important for the business to grow in a structured way.
After all, it's not just about being sure who your target audience is, but mainly about quantifying the customers who may be impacted by your actions over time. There are several strategies to do this.
One of them is the TAM, SAM and SOM methodology, as it aims to measure the real size of your business.
So, to help you see the positive results of this practice, we have prepared this content with everything you need to know about the subject. Let’s go? Stay tuned!
What is the TAM, SAM and SOM methodology?
TAM, SAM and SOM are actually acronyms that identify certain subsets of a business.
Thus, using these acronyms, entrepreneurs are able to create strategies based on demand forecasts for their services and/or products.
This way, they can project sales and, consequently, generate more solid and assertive growth.
Below you will find a brief explanation of each acronym. Check it out!
TAM
TAM is the acronym for Total Available Market, which represents mobile phone number data updated 2025 the total market demand for a given service and/or product.
However, it is worth noting that this market can only be explored if there is a high sales force, as well as distribution — in addition to a powerful global presence.
Therefore, for this number to be created, it is necessary to combine the revenue of all ventures worldwide.
SAM
SAM (Serviceable Available Market) is the real potential that your company has to reach a certain share in the coming years.
To do this, consider the specificities of your service/product, the growth of the market itself and, without a doubt, regionalization.
Although it is quite broad, it is a more focused market and, because of this, it is possible that there will be exploration in the medium and long term. However, it is necessary to install a model that is highly scalable.
Therefore, we can conclude that SAM is the part of TAM that is within its reach (geographically).
SOUND
The most realistic prediction of an acquisition is provided by the SOM (Serviceable Obtainable Market), which is the conquerable part of SAM.
It even considers different variables, such as:
sales channels;
different influences from outside;
distribution;
locality;
competition;
between others.
Therefore, it is the most suitable option for those who are just starting out. So, the first step to take is: don't try to sell to everyone. Focus on your ideal customer.
>> Read also: How do I understand who my ideal client is?
How important is it to know your market size?
TAM, SAM and SOM are great methodologies to help you manage your company.
After all, when an entrepreneur knows the size of the market he has, his actions become much more efficient and safe.
This is because, when we work with data analysis, projections are more realistic. As a result, strategic decision-making also becomes much more assertive.
Below, we list some benefits of actually knowing the market size of your business. Let's go!
More attractiveness for partners
One of the most important points that partners (and investors) look for are market numbers.
After all, who would associate with a company that doesn't have this type of control? In fact, nowadays, it is quite common to see companies that present unrealistic numbers for their market.
This undoubtedly damages the company's reputation, generates distrust and repels potential investors and partners.
Thus, when the business is presented in a more realistic way, there is a positive impression of maturity and preparation on the part of management.
After all, it's not just about being sure who your target audience is, but mainly about quantifying the customers who may be impacted by your actions over time. There are several strategies to do this.
One of them is the TAM, SAM and SOM methodology, as it aims to measure the real size of your business.
So, to help you see the positive results of this practice, we have prepared this content with everything you need to know about the subject. Let’s go? Stay tuned!
What is the TAM, SAM and SOM methodology?
TAM, SAM and SOM are actually acronyms that identify certain subsets of a business.
Thus, using these acronyms, entrepreneurs are able to create strategies based on demand forecasts for their services and/or products.
This way, they can project sales and, consequently, generate more solid and assertive growth.
Below you will find a brief explanation of each acronym. Check it out!
TAM
TAM is the acronym for Total Available Market, which represents mobile phone number data updated 2025 the total market demand for a given service and/or product.
However, it is worth noting that this market can only be explored if there is a high sales force, as well as distribution — in addition to a powerful global presence.
Therefore, for this number to be created, it is necessary to combine the revenue of all ventures worldwide.
SAM
SAM (Serviceable Available Market) is the real potential that your company has to reach a certain share in the coming years.
To do this, consider the specificities of your service/product, the growth of the market itself and, without a doubt, regionalization.
Although it is quite broad, it is a more focused market and, because of this, it is possible that there will be exploration in the medium and long term. However, it is necessary to install a model that is highly scalable.
Therefore, we can conclude that SAM is the part of TAM that is within its reach (geographically).
SOUND
The most realistic prediction of an acquisition is provided by the SOM (Serviceable Obtainable Market), which is the conquerable part of SAM.
It even considers different variables, such as:
sales channels;
different influences from outside;
distribution;
locality;
competition;
between others.
Therefore, it is the most suitable option for those who are just starting out. So, the first step to take is: don't try to sell to everyone. Focus on your ideal customer.
>> Read also: How do I understand who my ideal client is?
How important is it to know your market size?
TAM, SAM and SOM are great methodologies to help you manage your company.
After all, when an entrepreneur knows the size of the market he has, his actions become much more efficient and safe.
This is because, when we work with data analysis, projections are more realistic. As a result, strategic decision-making also becomes much more assertive.
Below, we list some benefits of actually knowing the market size of your business. Let's go!
More attractiveness for partners
One of the most important points that partners (and investors) look for are market numbers.
After all, who would associate with a company that doesn't have this type of control? In fact, nowadays, it is quite common to see companies that present unrealistic numbers for their market.
This undoubtedly damages the company's reputation, generates distrust and repels potential investors and partners.
Thus, when the business is presented in a more realistic way, there is a positive impression of maturity and preparation on the part of management.