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Total Addressable Market
Total addressable market (TAM), also called total available market, is a term that is typically used to reference the revenue opportunity available for a product or service. TAM helps prioritize business opportunities by serving as a quick metric of a given opportunity's underlying potential.Steve Blank and Bob Dorf, '' The Startup Owner's Manual'', K & S Ranch, first edition (March 1, 2012), One approach is to estimate how much of the market any company can gain if there were no competitors. A more encompassing variation is to estimate the market size that could theoretically be served with a specific product or service. TAM can be defined as a global total (even if a particular company could not reach some of it) or, more commonly, a market that one specific company could serve (within realistic expansion scenarios). This focuses strategic marketing and sales efforts and addresses actual customer needs. The inclusion of constraints such as competition and distribution challen ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Revenue
In accounting, revenue is the total amount of income generated by the sale of product (business), goods and services related to the primary operations of a business. Commercial revenue may also be referred to as sales or as turnover. Some company, companies receive revenue from interest, royalties, or other fees. This definition is based on International Accounting Standard, IAS 18. "Revenue" may refer to income in general, or it may refer to the amount, in a monetary unit, earned during a period of time, as in "Last year, company X had revenue of $42 million". Profit (accounting), Profits or net income generally imply total revenue minus total expenses in a given period. In accountancy, accounting, revenue is a subsection of the equity section of the balance statement, since it increases equity. It is often referred to as the "top line" due to its position at the very top of the income statement. This is to be contrasted with the "bottom line" which denotes net income (gross reve ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Business Opportunity
A business opportunity refers to the process of selling or leasing product, service, equipment, etc., to help buyers or renters start a new business. It usually includes support or guidance to help someone begin a business, such as choosing a location or supplying the main product. The party offering the business opportunity will usually promise to help the buyer find the right place to operate, or directly provide the buyer with the desired product. This is different from an outright sale of an independent business, where there is no need to maintain a long-term relationship between the seller and the buyer. A business opportunity provides a way to start a business without the need to maintain ongoing connections like buying an independent business. Eckhardt and Shane (2003) argue that the identifying business opportunities is a key influencing factor on the road to future entrepreneurship. In simpler terms, spotting a good opportunity is often the first and most important step ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Performance Indicator
A performance indicator or key performance indicator (KPI) is a type of performance measurement. KPIs evaluate the success of an organization or of a particular activity (such as projects, programs, products and other initiatives) in which it engages. KPIs provide a focus for strategic and operational improvement, create an analytical basis for decision making and help focus attention on what matters most. Often success is simply the repeated, periodic achievement of some levels of operational goal (e.g. zero defects, 10/10 customer satisfaction), and sometimes success is defined in terms of making progress toward strategic goals. Accordingly, choosing the right KPIs relies upon a good understanding of what is important to the organization. What is deemed important often depends on the department measuring the performance – e.g. the KPIs useful to finance will differ from the KPIs assigned to sales. Since there is a need to understand well what is important, various technique ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Steve Blank
Steve Blank (born 1953) is an American entrepreneur, educator, author and speaker. He created the customer development method that launched the lean startup movement. His work has influenced modern entrepreneurship through the creation of tools and processes for new ventures which differ from those used in large companies. Between 1978 and 2002, Blank worked at eight different technology startups, founding, or co-founding, four of them. Blank created the Lean Launchpad class and I-Corps curriculum which became the standard for science commercialization for the National Science Foundation, the National Institutes of Health and the U.S. Department of Energy. As of 2023, more than 3,051 teams and 1,300 startups have employed Blank’s methodologies. Blank is co-creator of the U.S. Department of Defense's Hacking for Defense program, and served on the Defense Business Board and the U.S. Navy’s Science and Technological Board. He is co-creator of the Gordian Knot Center for Nationa ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Serviceable Available Market
Serviceable addressable market (SAM; also served available market) is the part of the total addressable market (TAM) that can actually be reached. Overview The serviceable available market or served addressable market is more clearly defined as that market opportunity that exists within a firm's existing core competencies and/or past performance. The biggest consideration when calculating SAM is that a firm most likely can only service markets that are core or directly adjacent to its current customer base. As examples: * Consider a firm that plans to become a niche solution provider in the Healthcare market. It is unlikely that the firm will quickly be able to capture market share in manufacturing without significant investments in market expansion. * In telecommunications where a service provider is expanding into a new market that is dominated by an incumbent that has existing infrastructure investments in place, the incumbent raises the barriers to entry in that market and t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Target Market
A target market, also known as serviceable obtainable market (SOM), is a group of customers within a business's serviceable available market at which a business aims its marketing efforts and resources. A target market is a subset of the total market for a product or service. The target market typically consists of consumers who exhibit similar characteristics (such as age, location, income or lifestyle) and are considered most likely to buy a business's market offerings or are likely to be the most profitable segments for the business to service by OCHOM Once the target market(s) have been identified, the business will normally tailor the marketing mix (4 Ps) with the needs and expectations of the target in mind. This may involve carrying out additional consumer research in order to gain deep insights into the typical consumer's motivations, purchasing habits and media usage patterns. The choice of a suitable target market is one of the final steps in the market segmentation ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Demographic Profile
A demographic profile is a form of demographic analysis in which information is gathered about a group to better understand the group's composition or behaviors for the purpose of providing more relevant services. In business, a demographic profile is usually used to increase marketing efficiency. This is done by using gathered data to determine how to advertise products or services to specific audiences and identify gaps in marketing strategy. By focusing on a specific audience, a company can more efficiently spend advertising resources to maximize sales. This tactic is more direct than simply advertising on the basis that everyone is a potential consumer; while this may be true, it does not capitalize on the increased returns that more focused marketing can generate. Traditional demographic profiling involves gathering information on large groups of people in order to identify common trends, such as changes in population size or composition over time. These trends can be ident ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Market Segmentation
In marketing, market segmentation or customer segmentation is the process of dividing a consumer or business market into meaningful sub-groups of current or potential customers (or consumers) known as ''segments''. Its purpose is to identify profitable and growing segments that a company can target with distinct marketing strategies. In dividing or segmenting markets, researchers typically look for common characteristics such as shared needs, common interests, similar lifestyles, or even similar demographic profiles. The overall aim of segmentation is to identify ''high-yield segments'' – that is, those segments that are likely to be the most profitable or that have growth potential – so that these can be selected for special attention (i.e. become target markets). Many different ways to segment a market have been identified. Business-to-business (B2B) sellers might segment the market into different types of businesses or countries, while business-to-consumer (B2C) seller ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Mass Marketing
Mass marketing is a marketing strategy in which a firm decides to ignore market segment differences and appeal to the whole market with one offer or one strategy, which supports the idea of broadcasting a message that will reach the largest number of people possible. Traditionally, mass marketing has focused on radio, television and newspapers as the media used to reach this broad audience. By reaching the largest audience possible, exposure to the product is maximized, and in theory this would directly correlate with a larger number of sales or buys into the product. Mass marketing is the opposite of niche marketing, as it focuses on high sales and low prices and aims to provide products and services that will appeal to the whole market. Niche marketing targets a very specific segment of market; for example, specialized services or goods with few or no competitors. Background Mass marketing or undifferentiated marketing has its origins in the 1920s with the inception of ma ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Niche Market
A niche market is the subset of the market on which a product is appealed to a small group of consumers. The market niche defines the product features aimed at satisfying specific market needs, as well as the price range, production quality and the demographics that it is intended to target. It is also a small market segment. Sometimes, a product or service can be entirely designed to satisfy a niche market. Not every product can be defined by its market niche. The niche market is highly specialized, and aiming to survive among the competition from numerous super companies. Even established companies create products for different niches; Hewlett-Packard has all-in-one machines for printing, scanning and faxing targeted for the home office niche, while at the same time having separate machines with one of these functions for big businesses. In practice, product vendors and trade businesses are commonly referred to as ''mainstream providers'' or ''narrow demographics niche market pr ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
