Market sizing is a core consulting skill that answers "How big is the prize?" It informs investment decisions, market entry strategy, product launches, and M&A valuations. The goal is not a precise number — it is a credible, defensible estimate with clearly documented assumptions.
PROMPT TEMPLATE: TAM/SAM/SOM Market Sizing
I need to size the market for [product/service] in
[geography] for [time period].
PRODUCT/SERVICE: [what it is, who buys it, why they buy it]
APPROACH 1: TOP-DOWN SIZING
Start with the broadest relevant market and narrow down:
TAM (Total Addressable Market):
- What is the total global/national market for this category?
- Source this from industry reports, government data, or
public company filings
- Show the logic: [total population or businesses] x
[% relevant] x [average spend]
SAM (Serviceable Addressable Market):
- What portion of the TAM can this company realistically
reach?
- Narrow by: geography, customer segment, price tier,
channel, technology compatibility
- Show the logic: TAM x [% reachable based on constraints]Upgrade to Pro to access the full content
What you'll learn: