Types of Market Sizing: Use, Terms and Definitions
Market sizing is used for various purposes across functions, but there is often confusion about – and differing opinions on – how it is calculated
SiriusDecisions recommends using three core types of market sizing: total addressable market (TAM), serviceable addressable market (SAM) and serviceable obtainable market (SOM)
In the context of the Demand Unit Waterfall®, target demand equals the SAM because it reflects the number of potential demand units in the market
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