Hi! Thanks for the question.
Let us first provide some definitions about TAM and SAM.
?TAM - Total Available Market
This is your total market potential ? say the maximum amount of sales
that might be available to all the firms in an industry (during a
given period under a given level of marketing effort).?
?SAM - Within the total market, the served market is the market that
you will go after.?
?The Big Picture?
http://66.102.7.104/search?q=cache:4ctwBosI-AoJ:www.resonates.com/background/bp.htm+%22Total+Available+Market%22+SAM+TAM+examples+&hl=en&ie=UTF-8
TAM ? ?The first part of creating a marketing plan is to figure out
the size of your market. The total market category is usually referred
to as the TAM, or Total Available Market.?
SAM ? ?The next part of a marketing plan is to figure out your SAM, or
Served Available Market. A particular product usually can't meet the
specifications of 100% of the TAM, so the total market share a product
can possibly penetrate is usually less than the TAM (It is possible
for a SAM to be equal to a TAM, but is unusual in technical
products).?
?This is when segmenting a market becomes useful to figure out the SAM
for your product. If your SAM is less than the TAM, it can point you
towards product extensions. In the end, instead of one product serving
the entire TAM, you typically will have a series of products with
different SAMs that together serve the entire TAM.?
?The Cellphone Camera Market?
http://windowmanager.blogspot.com/archives/2004_01_25_windowmanager_archive.html
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Examples:
?Taking cameras for an example, the U.S. TAM of people who
occasionally want to take a picture might be 250,000,000. Of that
number, the ones who are willing to spend years learning how to use
their camera might be only 100,000. So if my name is Victor and I can
make a superb camera that is complicated to learn, my SAM is only
100,000. Let's assume I am so clever that I could devise a
manufacturing process to build that camera at literally any cost I
choose. And lets further assume that my gross margin goal is 50%. If I
build the camera for $100 and sell it for $200, all 100,000 of the
serious photographers will buy it and my profit will be $100 X 100,000
= $10,000,000. As an alternative let's say I could also build that
same camera for $1,000 and sell it for $2,000. At the higher price,
only one quarter of the SAM will buy it so my profit will be $1,000 X
25,000 = $25,000,000.
?The choice is clear. The limitation is the size of the SAM. The
theoretical $200 price would have placed this camera within the
budgetary reach of 125,000,000 people (half the TAM); but they won't
buy it because of the steep learning curve. Instead they will buy the
35mm point-n-shoot with the pop up flash.?
From Absolute Internet
http://www.kelvin.net/Hasselblad/hasselbladV1n226.txt
?You must clearly define the market as the sum of its parts. Estimate
a total (dollars, number of potential customers) market size (TAM =
total available market). Now, you must determine some subset of the
market, SAM (served available market), that your solution addresses
better than anyone else does. For example, when PCs were first
introduced, the TAM was businesses, not consumers. Within the business
space, only large corporations could afford PCs because they cost
$5,000, and this was the SAM. Assuming every business in America was a
buyer would have been a great mistake.?
?Stealth Success Factors?
http://66.102.7.104/search?q=cache:PYTz33Qw7_4J:www.startech.org/files/themarketingfactor.pdf+difference+%22Total+Available+Market%22+SAM+TAM++&hl=en&ie=UTF-8
?The current United States total available market (TAM) potential for
rheumatoid arthritis therapeutics is approximately $48.5 billion.
However, only some $16.6 billion (34.2% of the TAM) is considered to
be the serviceable available market (SAM).?
?Markets in Geriatric Medicine: 45+ Market in the United States;
Volume I: Rheumatoid Arthritis?
http://www.marketresearch.com/map/prod/910423.html
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Define glossary difference "Total Available Market" SAM TAM examples
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Easterangel-ga
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