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MethodBusiness Strategy & PlanningMarket & industry researchIntermediate

Size a market (TAM, SAM, SOM)

A top-down and bottom-up market size with TAM, SAM and SOM, reconciled and sensitivity-tested.

This is a practical, copy-paste process for you need a credible market size for a pitch deck or business plan.. Use it when you want a clear structure, then add your own details and the linked evidence.

Published by Deepstory Research. Reviewed Sep 2026.

How to use this method

  1. 1. Copy or downloadCopy the prompt below, or download the method file and attach it to your chat.
  2. 2. Paste into any AIChatGPT, Claude, Gemini or Copilot. Replace each [PLACEHOLDER] with your details, or let the AI ask you.
  3. 3. Add evidenceAttach the evidence files listed on this page so the AI works from sourced numbers, not guesses.

The prompt

Paste it as-is. The AI will ask for anything still in [BRACKETS].

Download .md
# Size a market (TAM, SAM, SOM)
Method by Deepstory Research: deepstoryresearch.com/method/market-sizing-tam-sam-som

You are a market-sizing specialist who has built models for venture investors. Follow the method below step by step. Goal: A top-down and bottom-up market size with TAM, SAM and SOM, reconciled and sensitivity-tested.

## My inputs
- Product or service: [PRODUCT_OR_SERVICE]  (example: B2B invoice-financing app)
- Target customer: [TARGET_CUSTOMER]  (example: SMEs with 10–200 staff)
- Geography: [GEOGRAPHY]  (example: India)
- Pricing: [PRICING]  (example: 1.5% fee per invoice)

Before you start: if any input above is still in [BRACKETS] or missing, ask me for it in one short numbered list and wait. Do not guess. If I attached files (data, briefs, Deepstory evidence files), treat them as the primary source.

## Steps to follow
1. Restate the product, customer and geography in one sentence and list what you assume.
2. Top-down: start from a published total (industry revenue or population) and narrow with explicit percentages.
3. Bottom-up: number of target customers × adoption × price × frequency.
4. Define TAM, SAM (reachable with this model and channel) and SOM (realistic 3–5 year share).
5. Reconcile the two approaches and explain any gap larger than 30%.
6. Run a sensitivity table on the two assumptions that move the answer most.
7. List the data you would buy or collect to replace the weakest assumption.

## Deliver the output in this structure
- Assumptions table (value, source, confidence)
- Top-down calculation
- Bottom-up calculation
- TAM / SAM / SOM summary
- Sensitivity table
- Data gaps to close

## Quality rules
- Every number is labelled FACT, ESTIMATE or ASSUMPTION.
- Units and currency stated on every line.
- SOM must be justified by channel capacity, not a flat "1% of the market".
- Label every number as FACT (with source and date), ESTIMATE (show the calculation) or ASSUMPTION.
- If a Deepstory evidence file is attached, use its figures as the reference values and cite its source references; tag claims that are not from it as [UNVERIFIED].
- End with: the 3 assumptions that matter most, what would change the answer, and the single best next step.

What you need to give the AI

InputPlaceholderExample
Product or service[PRODUCT_OR_SERVICE]B2B invoice-financing app
Target customer[TARGET_CUSTOMER]SMEs with 10–200 staff
Geography[GEOGRAPHY]India
Pricing[PRICING]1.5% fee per invoice

Use it when

  • You need a credible market size for a pitch deck or business plan.
  • You want to check whether a niche is big enough to be worth pursuing.

What you get

  • Assumptions table (value, source, confidence)
  • Top-down calculation
  • Bottom-up calculation
  • TAM / SAM / SOM summary
  • Sensitivity table
  • Data gaps to close

The procedure, step by step

Read this before you run it, so you can check the AI actually followed the method.

  1. 1

    Restate the product, customer and geography in one sentence and list what you assume.

  2. 2

    Top-down: start from a published total (industry revenue or population) and narrow with explicit percentages.

  3. 3

    Bottom-up: number of target customers × adoption × price × frequency.

  4. 4

    Define TAM, SAM (reachable with this model and channel) and SOM (realistic 3–5 year share).

  5. 5

    Reconcile the two approaches and explain any gap larger than 30%.

  6. 6

    Run a sensitivity table on the two assumptions that move the answer most.

  7. 7

    List the data you would buy or collect to replace the weakest assumption.

Quality checks built into the prompt

  • • Every number is labelled FACT, ESTIMATE or ASSUMPTION.
  • • Units and currency stated on every line.
  • • SOM must be justified by channel capacity, not a flat "1% of the market".
  • • Every number labelled FACT, ESTIMATE or ASSUMPTION; claims outside attached evidence tagged [UNVERIFIED].

Evidence to use with this method

Methods tell the AI how to think. Evidence gives it sourced numbers to think with. Download a context file and attach it with the prompt.

Run next

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Deepstory methods are process guidance for AI tools. Review AI output before relying on it; legal, tax, medical and investment decisions need a qualified professional.