What is a Total Available Market (TAM)?

It is the total market demand for a product or service. To calculate it, you would take the population in your target market and multiply it by the penetration rate (the percentage of that population who would potentially buy your product or service).

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What are the different types of Total Available Markets (TAM)?

A TAM can be defined in terms of the geographic scope or customer segments that are addressed by a company's products and services. There are three different types of TAM:

1. Domestic TAM - This is the total market opportunity for a company's products and services within its home country.

2. Foreign TAM - This is the total market opportunity for a company's products and services outside of its home country.

3. Global TAM - This is the total market opportunity for a company's products and services across all countries.

The size of a company's TAM depends on a number of factors, including the number of potential customers, the average spending of those customers, and the company's share of the total market. When evaluating a TAM, it is important to consider all three types in order to get a complete picture of the opportunity.

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