What it is: SAM represents the portion of the total addressable market (TAM) that a company can effectively target and serve with its products or services based on its business model and capabilities.
Why it is important: Understanding the SAM helps startups assess the realistic market potential for their offerings and identify their target customer segments. It allows startups to focus on the most promising market opportunities and tailor their marketing and sales strategies accordingly.
Formulas: There are no specific formulas associated with SAM.
How to use it in the context of startups: Startups can use SAM to define their target market, estimate the revenue potential, and align their business strategies with their target customers' specific needs and preferences. By analyzing SAM, startups can make informed decisions about resource allocation, product development, and market positioning.
