Segmentation-Targeting-Positioning (STP)

Market Potential & TAM

Test how well you grasp market potential & tam fundamentals. Answer ten scenario‑based questions to benchmark your know‑how.

TAM stands for ______ market.

total addressable

time‑adjusted

technically available

targeted addressable

TAM means the full revenue opportunity if every potential customer bought. Investors use it to size an overall market.

Bottom‑up TAM calculation usually multiplies average selling price by ______.

marketing budget

competitor count

profit margin

number of potential buyers

Bottom‑up sizing scales a realistic unit count by price rather than relying on broad industry totals.

SAM is the portion of TAM that aligns with ______.

entire economy

competitor share

future expansion

served market

Served Available Market filters the universe down to segments a firm can currently reach with its capabilities.

SOM represents share of ______ that a company expects to capture.

market

budget

mind

wallet

Share‑of‑Market (SOM) focuses on the realistic slice a business can win in the near term.

A market with high TAM but low growth rate may be scored lower on ______ attractiveness.

channel

supplier

resource

segment

Growth potential is a critical criterion in segment attractiveness models alongside size and profitability.

A publicly traded firm's 10‑K is often used for TAM research because it discloses ______ estimates.

CEO salary

industry size

tax rate

inventory turnover

Regulators require public companies to discuss market size and outlook, giving analysts credible data points.

Total potential users multiplied by ARPU is commonly used for TAM in ______ models.

oil drilling

agriculture

real estate

SaaS subscription

Software‑as‑a‑Service businesses project revenue by user count times average recurring price.

Analysts caution against double‑counting when aggregating TAM across ______ segments.

overlapping

numerical

intangible

geographic

If two segments share customers, summing them inflates the true opportunity.

Overly optimistic TAM can mislead ______ investors about realistic returns.

venture capital

supplier

government

employee

VCs rely on credible market sizing to judge a startup’s scale potential.

TAM helps prioritise segments but positioning decisions still depend on ______ fit.

strategic

seasonal

random

algorithmic

Even large markets may be rejected if they conflict with a company's core competencies.

Starter

Revisit the basics before your next pitch.

Solid

You know the core ideas—fine‑tune the details for mastery.

Expert!

You could teach this topic—impressive depth.

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