SAM

Definition

SAM, or Serviceable Available Market, is the segment of the overall market that a company can actually target with its products or services. Unlike the broader total addressable market, SAM considers a firm's resources, capabilities, geographical scope, and business model. For marketers and sales strategists, SAM offers a realistic view of market opportunity.

Why Use

• Focus resources on winning achievable market share.
• Align sales and marketing efforts on reachable customers.
• Set realistic, data-driven growth targets for planning.
• Support investor pitches with evidence-based opportunities.

Core Concepts

• Serviceable market versus total market distinction.
• Influence of delivery and distribution constraints.
• Segmentation by geography, product, or customer need.
• Integration into go-to-market strategy.
• Market research and data analysis.

Examples

Numeric example: If the total addressable market is £10 million, but your company can only reach regions worth £2 million due to distribution limits, your SAM is £2 million. Formula: SAM = TAM x (reachable segments / total segments).

Interpretation: Focusing on SAM avoids waste by only pursuing viable opportunities.

Common Pitfalls

• Confusing SAM with the broader total addressable market.
• Overestimating reach by ignoring operational limits.
• Failing to update SAM as conditions change.

See Also

Related terms include TAM (Total Addressable Market), SOM (Serviceable Obtainable Market), and market segmentation.