Flashcards on Market Sizing in Business Planning
Market Sizing in Business Planning: Guide for Students
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Market Sizing
47 cards
Card 1
Question: What is market sizing?
Answer: The process of estimating potential demand for a product or service within a specific market segment or industry, typically quantified in revenue, uni
Card 2
Question: Why is market sizing important for a business?
Answer: It helps understand the scale of opportunity, assess viability of entering or expanding in a market, and make informed decisions on resource allocatio
Card 3
Question: What types of data and information are typically used in market sizing?
Answer: Demographics, customer behaviour, competitive landscape, and market/industry trends and data.
Card 4
Question: Define Total Addressable Market (TAM).
Answer: TAM represents the total demand for a product or service within the entire market or industry — every potential customer who could have the need being
Card 5
Question: Give an example of TAM for solar panels in India.
Answer: TAM includes all potential customers across residential households, commercial buildings, industrial facilities, and government installations nationwi
Card 6
Question: Define Serviceable Addressable Market (SAM).
Answer: SAM is the portion of TAM that a company can realistically target and serve based on its resources, capabilities, strategy, and market positioning.
Card 7
Question: Give an example of SAM for a solar panel company focusing on specific Indian states.
Answer: SAM would be the total demand for solar panels within the targeted regions (e.g., states with high adoption or subsidies like Gujarat, Rajasthan, Karn
Card 8
Question: Define Serviceable Obtainable Market (SOM).
Answer: SOM is the portion of SAM that a company can realistically capture within a defined timeframe, considering competition, market saturation, and operati
Card 9
Question: Give an example of SOM for the solar panel company operating in India.
Answer: SOM would be the specific segment of the targeted regions that the company can capture with its current distribution, marketing, and production capaci
Card 10
Question: How do TAM, SAM and SOM relate to each other?
Answer: TAM is the total market demand; SAM is the subset of TAM the company can target and serve; SOM is the subset of SAM the company can realistically capt