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Test Market Size Calculation (TAM, SAM, SOM)
Agenda
1st QUESTION: What does the TAM represent according to the text?
Expected market share in the first year
Theoretical total demand without competition
Segment matching geography and business model
Customers willing to wait for longer shipments
2nd QUESTION: Why is the TAM reduced to the SAM?
To ignore established competitors
To ensure 100% of the available market
To estimate only the fraction capturable in the short term
To narrow the market to what fits with geography and business model
3rd QUESTION: What factors delimit SOM in the eco-friendly sportswear example?
Only the premium price of the product
Only own SEO positioning
Neighborhood fast food preferences
Existing competition, current resources and operational capacity
QUESTION 4: According to the text, what does the SOM reflect?
Maximum market size without rivals
The total number of people interested in the country
Segment defined by geography and demographics
Realistic portion capturable in the short and medium term considering competition and internal constraints
QUESTION 5: What filters should be applied to define the SAM?
Demographic, geographic and purchasing power filters
Age and gender only
Only number of competitors
Waiting time for shipments ignoring location
QUESTION 6: What fallacy avoids the rigorous filtering mentioned in the text?
Believe that competition does not affect
Thinking that capturing 1% of a mass market guarantees wealth
Assume SEO always works
Assume that premium pricing has no influence
7th QUESTION: In the example of the fine dining restaurant, why is the SAM lower than the TAM?
Because it includes the entire city without restrictions
Because it excludes those who prefer eco-friendly clothing
Because it is limited to people at a reasonable distance or willing to travel for special occasions
Because you only count customers with access to fast food
8TH QUESTION: What approach does the text recommend to build projections?
Top-down based on 1% of the market
Ignoring competition and limitations
Use only marketing metrics
Build bottom-up based on current competitive realities
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