Untangling the TAM, SAM, SOM and ICP alphabet soup
The technology industry increasingly relies on TAM (Total Addressable Market) and ICP (Ideal Customer Profile) terminology.
In traditional frameworks though, TAM represents the entire market opportunity, different from:
SAM (Serviceable Addressable Market), its subset realistically targetable based on geography, pricing, and channels
SOM (Serviceable Obtainable Market), the narrower portion capturable with current capabilities under existing market conditions
So, what many practitioners label as "TAM" is technically SOM...
Similarly, ICP is sometimes mischaracterized as equivalent to SOM, when it identifies your "bullseye" customer with perfect alignment to your offering. This positions ICP as a strategic subset within SOM, not a synonym.
Ironically, this confusion happens precisely when, leveraging data and AI, segmentations are getting much sharper.
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