Question

Why is providing TAM, SAM, and SOM for a product or service unlikely to fully satisfy potential investors?

		a. Even when well researched, they tend to be unreliable.
		b. They tend to focus too much on competition.
		c. They don’t provide information about where the market is going in the future.
		d. They tend to be overly optimistic, especially about the customers your marketing is likely to reach.

Answer 1

Answer is d. They tend to be overly optimistic, especially about the customers your marketing is likely to reach.

The reason for choosing this option is that TAM, SAM and SOM largely focus on capturing the available. They don't focus much on the requirements and need of customers. If the customers are not satisfied at the SOM level,the TAM strategy won't be much successful. TAM, SAM and SOM also doesn't provide the realistic objectives which gives assurance that customer will buy their products.

Full form of TAM, SAM and SOM are:

TAM stands for Total Available Market.

SAM stands for Serviceable Available Market

SOM stands for Serviceable Obtainable Market.