Market Sizing

The market size refers to the

aggregate number of possible buyers
of a product and/ or service in an
industry and the aggregate revenue
that these sales may produce over the
course of a year. It is vital and beneficial to
know the possible market size prior to the
introduction of a new product, a new
product line or new line of business.
This would provide a better
understanding of the entrepreneur's
investment worthiness in terms of
time, money and effort. For an existing
type of business, one may refer to the
existing sales number in an industry to know
the market size.
The market size is divided into four broad
categories, namely:

TAM

SAM
SOM
---> Total Addressable Market

How big is the largest possible market?

-> Serviceable Available Market

What proportion of that market fits you?

>> Serviceable Obtainable Market

What proportion of that market can you reach?

Figure 7: Four Categories of Market Size

Source: https://www.process.st/tam-sam-som/

1. Potential Available Market (TAM)- The

potential available market is the total possible
value that represents the global market of
products and/or services sold over a definite
timeframe without any limits of geography
and other factors. This assumes the 100% market
share.

2. Total Addressable Market (TAM) - TAM

is the potential value of product and/ or
service sold to a particular customer segment.
This shows the number

of customers in the core market around

the world who are in need of the
entrepreneur's product and/or service
offering. TAM is irrespective of
competition. These may not
necessarily be those who can afford to
buy the offering but they must have a need
of the item. Hence, in estimating the TAM,
the type of customers who are in need of
the product and/or service and their volume
requirement must be known. An
entrepreneur in order to know his TAM must
define first his own company and should
know where his company is heading to.
For instance, the TAM for Uber is not
merely the size of the taxi market but
includes the whole transportation industry.
Say an entrepreneur for his service
business wanted to know his TAM. In this
case his TAM consists of all people
who have a need for help doing
tasks and running errands in his
community. Based from market research,
if his community has 150,000
constituents, the TAM could probably
be 33% which is 50,000 people. This
percentage is obtained by excluding
people who are below 18 years of age and
those people who has no capacity to buy his
service offering. 3. Serviceable Available
Market (SAM) - SAM is the subset customer of
the total addressable market (TAM) who can
be reached and ready to buy goods or
services using a one revenue
stream/channel. Going back to the
example of an entrepreneur with a service
business, his SAM is the slice of that 50,000 who
he is targeting in his present business
model. He may qualify to serve only those
people between the age of 35-55 years old
with small children and disposable income.
With these limitations, he may realize that this
is 40% of his TAM which is 20,000.
-

4. Serviceable Obtainable Market (SOM) -

This is the subset of the SAM that will
realistically get to use a product and/or
avail of the service. This is the target market
who the entrepreneur shall primarily sell
to. Here, there is much consideration to
strategic development of the market and
the competitors' actions. An
entrepreneur should have a strong
understanding of his local market, a
deeper knowledge of his own company
and what he can deliver. When starting a
business, simple things such as the
amount of traffic that is on the road
may really have a big impact. Using
again the example of the
entrepreneur with a service
 business, he must estimate the
portion of his SAM that his
business model can realistically
serve at present. He may have
himself and his two employees who can
serve people within a 2-kilometer radios
say 10%of his SAM which he
can reach in the first 2 to 3
years of operation. So this means
his SOM is 2,000 people a year.
What is Entrepreneurship
Marketing
Entrepreneurial marketing is more
about a marketing spirit that
distinguishes itself from traditional
marketing practices. This type of
marketing for entrepreneurs avoids
many of the fundamental principles
of marketing are usually aimed for
big and well-known companies. It makes
use of new and non-traditional
marketing practices that makes
entrepreneurs stand out from their
competitors.

Entrepreneurial marketing
campaigns try to emphasize the
company's greatest strengths while
stressing their value to the customer. Here
are some of the marketing strategies
that makes a lot of entrepreneurs
successful when use in combination:
1. Relationship marketing - The
emphasis of this is on building a
solid connection
between the brand and the customer.

2. Expeditionary marketing - This

involves forming markets and creating
innovative products. Here the
entrepreneur's company acts as a leader
rather than a
follower.

3. One to one marketing - Here

customers are marketed to as individuals.
All
marketing efforts are tailor-fitted.
4. Real time marketing -This makes use of
the power of technology to interrelate
with a customer in an actual time.
5. Viral marketing - It places marketing
messages on the Internet like Facebook
and
Instagram so they can be shared and
expanded on by customers.
6. Digital marketing - This considers
leveraging the power of Internet tools like
e-mail and social networking to back-up
marketing efforts.

In a journal article written by Michael H.

Morris, the concept of entrepreneurial
marketing consists of six elements, which are:

1. Customer intensity - This feature

concentrates on the enthusiasm, passion,
zeal, and belief in marketing that makes the
company successful. It is believed that a
customer-intensity component makes
stronger the primary values of the company
and the passion for the customer.
2. Continuous innovation - An
entrepreneurial company must constantly
create innovative ideas and transform them
into new or improved products and/or services
or processes.
3. Strategic flexibility - An
entrepreneurial company must
display an enthusiasm to always
evaluate and fine-tune its
strategies, action plans,
techniques of resource allocation,
structure, culture, and management
systems.
-

4. Calculated risk-taking - Risk-

taking refers to pursuing novel
opportunities. Entrepreneurs take
calculated risks, but some can be
serious for the future of
the company.

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5. Proactiveness - Entrepreneurs are

conscious of the significance of the
external marketing environment;
however, they do not take it as a
given. They recognize it as a horizon of
possibilities. Simply, entrepreneurs try to
reassess the elements of the external
environment to lessen its ambiguity,
moderate reliance and exposure of the
company, and/or transform the
environment in which the company
functions.
6. Resource leverage - Entrepreneurs'
ambitions usually go beyond their
resources; hence they are obligated to
utilize their resources in the best
possible way. They control their resources
so that they ca use them longer than others have
used them in the past. They use resources
that others do not regard as resources.
They use other people's/companies'
resources to accomplish their own goals.
They combine one resource with another to
produce a greater shared value.

Creating a Personal Brand

For individuals who form their businesses using
their expertise such as an author, public
speaker, coach, consultant and
freelance, the idea of personal branding
is familiar and comes naturally for them. It
makes sense too for an entrepreneur to build a
reputable personal brand.
A personal brand is the one that differentiates
an entrepreneur from the rest of his
competitors. This type of branding forms a
lasting impression on the minds of the
customers about the quality of his product
and/or service. Actually this convincing
personal brand draws the target customers to
buy from the company which makes it a lucrative
and sustainable business.

In personal branding customers do not think

of the company but the talented founders
behind them. For example, Apple is Steve Jobs,
Microsoft is Bill Gates and Facebook is Mark
Zuckerberg. Personal branding is not only meant
for big companies. It is also applicable for
startups or new ventures because customers shall
gauge the value of the offering based on this
brand. An entrepreneur must remember that his
product and/or service is the "what" of his
business and personal branding is the "why".

Here are some of the benefits of personal

branding:
1. Trust and authority - With a personal
brand an entrepreneur can build trust with his
customers and position himself as an
authority and a thought leader in the industry.
2. Get featured in media - With a personal
brand, it easier for an entrepreneur to pitch
and be found by media like online
publications, magazines, television, radio,
podcasts, and others. The media is in
continuous search of experts that can share
their visions with the audience.

3. Build a network-With a personal brand it

clearly articulates who the entrepreneur is,
what he does, and how he helps others. The
brand makes it easier for other people and
other entrepreneurs to see value in
connecting with the owner of the business.
A personal brand can leverage to build a
network, both online and offline, quickly and
effectively.

4. Attract more customers - Building

a personal brand that positions an
entrepreneur as the go-to expert in
a particular industry or niche
helps him to draw a lot of his ideal
customers. When an entrepreneur
is positioned as an expert, it's also
easier for people to refer customers to him.
5. Premium pricing - With a strong
personal brand charging premium
prices for products and services is
justifiable. Without a brand, an
entrepreneur becomes a commodity
that competes on price. Besides
there will always be competitors that
can beat his price.
6. Create a lasting platform - Over
time, a business will surely evolve.
An entrepreneur may even jump to
multiple businesses in diverse
industries over the course of his
career. A personal brand stays
with him as he moves from one
venture to the next.

Some social media platforms can do a

lot for an entrepreneur's personal
branding. Here are some of them:
ups
may

1. LinkedIn - This network is really

designed to let others know who are
professional. It can display information
such as school graduated from, line
of study and expertise, work history,
passion, and the likes, basically,
everything that has to do with being a
professional. When used effectively this
can create a powerful background for the
current business and what a company can
provide to its customers. The entrepreneur
should always make his profile, complete,
detailed and updated. He must engage his
connections with having regular posts. He
join with other personal and businesses
interests. He may make write about
something that shall display his expertise
especially about his new company. knowledge
about something, ideally about the business
of your startup company. 2. Twitter - This is
another influential and popular platform for
posting business news and developments.
This can also be used for simply sharing
information. Hence, this social channel is a
very powerful for personal branding. It allows
an entrepreneur to communicate on current
issues through comments which may have
something to do with his business. Twitter
can also be a great platform for starting a
conversation besides sharing important
matters with customers and employees.
Using hashtags, an entrepreneur may
get people into a particular topic, discover
possibilities and stir motivation.
3. Pinterest - This is perfect for
communicating the entrepreneur's
numerous interests. The graphic nature
of Pinterest makes it distinctive. An
entrepreneur can post high definition
photos of his products here, or
something casual about what his
business does. He can even pin his
packaging and logo, besides interesting
and beautifully made infographics to
relate to his personal brand or his
business. Every now and then, an
entrepreneur can also pin the beautiful
places he had visited by
adding a more personal touch
to his online persona.