Copy - Copy - Class 13: Introduction V3

Glossary of Terms

Review Industry Trends and Estimate Market Size (TAM)

Quick Explainer

Introduction

Overview

Growth rate

09

macro trends

05

GLOSSARY OF TERMS

TAM

stakeholders

04

SOM

08

07

SAM

06

03

Market Trend

02

Market Share

01

Market Size

Review industry Trends and ESTIMATE Market SIZE (TAM)

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What is TAM? Total Addressable Market (TAM) represents the overall revenue opportunity available for a product or service within a specific market or industry. It includes the total revenue that could be generated if a business captured 100% of its ideal customer base within that market, without considering any competitive or market constraints.

What is Growth Rate?Growth rate is the rate at which a business, market, or economy increases or expands over a specific period, often expressed as a percentage.

What is a SAM?SAM stands for Serviceable Available Market. It represents the segment of the Total Addressable Market (TAM) that a company or business can realistically target and serve within a specific geographical area, industry, or customer segment. SAM is a more refined subset of the TAM and considers factors such as market access, resources, and capabilities that limit a company's reach.

What is Market Share? The percentage of the total sales in a market for product/s fulfilling a certain market need captured by a company, product, or brand, often used as an indicator of market competitiveness.

What is Market Trend?Patterns or shifts in the industry relating to demand, supply, pricing, affordability etc. of products, services that indicate the general direction of a market.

What are Macro Trends ?Macro trends are broad, long-term patterns or shifts in society, technology, economics, or culture that impact industries and markets

Who is a Stakeholder?Stakeholders are individuals, groups, or entities who have an interest or stake in the operations, outcomes, or decisions of a company or project. They may include shareholders, employees, customers, suppliers, government entities, and the local community.

What is SOM?SOM stands for Serviceable Obtainable Market. It's a subset of the Serviceable Available Market (SAM) that represents the portion of the market a company or business can practically and realistically capture or obtain based on its strategy, resources, and current limitations.

What is Market Sizing?Market sizing is like figuring out how many people might be interested in buying something you want to sell. It's about estimating how much demand there is for your product or service in a certain group of customers.