Skip to main content
Rinda Logo
Concepts behind this tool

What you need to know to read the result

These are the terms that decide how you act on this tool's output. Pulled from our trade glossary.

What is TAM (Total Addressable Market)?

TAM (Total Addressable Market) represents the theoretical maximum market size if a product or service reached all potential customers and achieved 100% market share. It's used to gauge market potential and set broad direction for investment and product strategy, typically expressed as annual revenue. While a large TAM doesn't guarantee success, understanding the market ceiling is essential for predicting growth limits, making it a key metric in early strategy development.

Read the full TAM definition

What is SAM (Serviceable Available Market)?

SAM (Serviceable Available Market) refers to the portion of TAM that your product and model can actually serve. It narrows the available market by reflecting realistic constraints such as geographic scope, language, distribution channels, legal regulations, and product compatibility. Therefore, SAM has more direct significance than TAM in determining strategic focus and resource allocation.

Read the full SAM definition

What is SOM (Serviceable Obtainable Market)?

SOM (Serviceable Obtainable Market) represents the market share and revenue that can realistically be captured from SAM, considering current resources, capabilities, and competitive conditions. It indicates the most realistic and actionable market scope for short- to medium-term sales targets. SOM should be aligned with actual execution plans rather than strategic aspirations.

Read the full SOM definition

What is an ICP (Ideal Customer Profile)?

ICP (Ideal Customer Profile) refers to a systematic definition of the type of customer who can best utilize your product or service and derive the maximum value from it. It is one of the most critical concepts in B2B sales and marketing. ICP goes beyond simply asking 'which companies can buy our product' to focus on 'which companies can achieve the greatest success with our product.' A clear ICP enables the most efficient targeting in marketing and sales activities, playing a decisive role in lowering customer acquisition cost (CAC) and increasing customer lifetime value (LTV).

Read the full ICP definition

What is a Niche Market?

A Niche Market refers to a small group within the broader market that shares common problems, regulations, or preferences around a specific industry, technology, business process, or region. Opportunities exist in areas where larger companies have not deeply engaged due to unfavorable scale-to-profitability ratios. By deeply understanding the customer's language and problems, you can secure high margins and loyalty even in small markets, and create the effect of your brand being recognized as the industry standard.

Read the full Niche Market definition
Browse the full trade glossary