Nominal TAM
Nominal TAM stands for Total Available Market, which is a way to measure the potential size of a market for a particular product or service.
Okay, let's say you love toys, and you want to start a toy business. You want to know how many potential customers are out there that might buy your toys.
So, to figure that out, you need to know the total number of people who might be interested in toys, right? That is your Total Available Market, or TAM for short.
Now, your Nominal TAM is the biggest possible number of customers out there, even if not all of them actually want or need your toys. For instance, just because someone is part of your Nominal TAM, it doesn't mean they will buy your toys.
Let's say you want to sell toys to all people who live in the United States. That's a lot of people! But not everyone wants toys, not everyone has kids, and not everyone has the money to spend on toys. So, your Nominal TAM might be, for example, 330 million people who live in the USA, but in reality, it is likely smaller because not everyone is interested in what you are offering.
By analyzing the Nominal TAM, you can understand how large your target market is and focus on developing a marketing strategy to get the most potential customers interested in buying your toys.
Okay, let's say you love toys, and you want to start a toy business. You want to know how many potential customers are out there that might buy your toys.
So, to figure that out, you need to know the total number of people who might be interested in toys, right? That is your Total Available Market, or TAM for short.
Now, your Nominal TAM is the biggest possible number of customers out there, even if not all of them actually want or need your toys. For instance, just because someone is part of your Nominal TAM, it doesn't mean they will buy your toys.
Let's say you want to sell toys to all people who live in the United States. That's a lot of people! But not everyone wants toys, not everyone has kids, and not everyone has the money to spend on toys. So, your Nominal TAM might be, for example, 330 million people who live in the USA, but in reality, it is likely smaller because not everyone is interested in what you are offering.
By analyzing the Nominal TAM, you can understand how large your target market is and focus on developing a marketing strategy to get the most potential customers interested in buying your toys.