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The TAM - SAM - SOM Model is a useful method of estimating your market size.
Learn more about the TAM - SAM - SOM Model starting on page 149 of
The Handbook of Market Research for Life Science Companies [eBook]
(Don't let the title fool you! This book is helpful for ALL industries, not just life sciences.)
In a B2B (business-to-business) market, companies make up your pool of potential customers, or market size.
To estimate the size of a B2B market, you need to determine the number of companies in your target market.
This can be approximated by creating a list of companies that meet specific criteria (e.g., industry, location, size, etc.)
In a B2C (business-to-consumer) market, people make up your pool of potential customers, or market size.
To estimate the size of a B2C market, you need to determine the number of people in your target market.
The following resources can help you approximate the number of people that meet various demographic or behavioral (psychographic) criteria:
For additional resources for estimating B2C market size, see the Consumers page.
1. Market size and share information is not always readily available, especially for small, niche industries.
2. It may be necessary to estimate the market size by:
looking at a similar industry that can serve as a “proxy” or benchmark for your industry, or
using pieces of information from various sources to estimate the information you’re looking for.
3. Determining a company's market share for a product that accomplishes a specific task isn't clear-cut.
Companies rarely manufacture a single product (e.g., Apple manufactures phones, computers, watches, etc.).
A product rarely serves a single purpose (e.g., an Apple Watch monitors heart rate and counts counts steps).
The exact information you're looking for may not be available, and estimates may need to be made based on the information that is available.
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