In the context of business or sales, the Service-Obtainable Market (SOM) refers to the portion of the Service-Addressable Market (SAM) that a company can realistically capture or acquire. It represents the target market segment where a business has the resources, capabilities, and competitive advantage to effectively reach and serve customers. The SOM is influenced by factors such as the company's market penetration strategies, sales and distribution channels, pricing, product positioning, and competitive landscape. Understanding the SOM helps businesses set achievable goals, allocate resources efficiently, and develop strategies to maximize their market share within the serviceable market segment they can effectively serve.
Why it matters in sales
In the world of sales, SOM takes on a different meaning. Serviceable Obtainable Market refers to the segment of the total addressable market that salespeople can realistically target and convert into customers. It's important for a sales organization to carefully consider their SOM because it shapes their approach to identifying and pursuing potential customers. As Seth Godin would say, "The SOM is the lens through which you see the world of prospects." Without a clear understanding of their SOM, salespeople risk wasting time and resources pursuing prospects who aren't a good fit or simply aren't interested in what they have to offer. By focusing on their SOM, sales organizations can develop targeted, effective outreach strategies that maximize their chances of success. It's not about being everything to everyone, but rather about identifying the right customers and serving them in the best way possible.
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