The market sizing filtration architecture
Filter global theoretical demand through structural compatibility, go-to-market channels, and deployed sales capacity.
| Filtration tier | Scope definition | Mathematical basis | Operational constraint governed |
|---|---|---|---|
| Total Addressable Market (TAM) | Global universe of theoretical demand | Total Universe $\times$ Potential ACV | Macro strategic category ceiling and venture scale |
| Product-Market Fit Filter | Excludes incompatible segments | Accounts meeting ICP specifications | Technical capability and feature parity |
| Serviceable Addressable Market (SAM) | Reachable target segments | Target Accounts $\times$ Realized ACV | Go-to-market distribution, sales channel, geography |
| Commercial Capacity Filter | Excludes accounts exceeding capacity | Active sales reps $\times$ Account coverage | Field bandwidth and marketing pipeline velocity |
| Serviceable Obtainable Market (SOM) | Committed 12--36 month revenue | Active Quota Reps $\times$ Attained Quota | Annual operating plan (AOP) and quota allocation |
| Unit Economics Validation | Marginal cash contribution | $\text{SOM} \times \text{CMR} - \text{Sales Cost}$ | Enterprise capital efficiency and margin sustainability |
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Reference & Evidence
Source: Author's commercial market sizing framework grounded in industrial market measurement and sales territory literature from Goodman (1972), Beswick and Cravens (1977), Darmon (2002), and Piercy et al. (1999).
Each line is a claim from the register this journal publishes against, resolved from the register at build time.
- B Goodman's own distinction: market potential is a measure "of an environmental state at a point in time (present or future)", whereas "sales forecasts are measures of expectation which are conditional upon inputs of the various marketing decision variables", and "it is usually necessary to rely on proxy data for most of the things a marketer would like to measure" Goodman. (1972) ·
MSB27-C1 - B The three stages are the paper's own: "The first step assesses the broad market potential of a country; the second step estimates the sales potential for a specific company, and the third step calculates return on investment for the company based on the resources required" Natarajarathinam & Nepal. (2012) ·
MSB27-C2
Grades: A, verified against the printed page of the primary source · B, primary source, text layer only · C, authoritative secondary · D, reported.