The TAM Trap: Why Marketers Get It Wrong (And How to Fix It)

95% Ignore You. 5% Are Ready to Buy. Are You Prepared for Both?

Think about the last big purchase you made – maybe a new car, a CRM system, or even an office lease. Chances are, you spent weeks, maybe even months, researching your options. But now that you’ve made the purchase, you’re no longer in the market, and you won’t be for years. Yet, ads for the same product continue to follow you around online. Sound familiar?

Now, flip the script. Imagine you’re the marketer.

At any given moment, only 5% of your total addressable market (TAM) is actively looking to buy. These are the people who are ready to take action – they’re comparing vendors, requesting demos, and making final decisions. The remaining 95% aren’t ready yet, but they will be in the future.

If your marketing strategy only focuses on capturing that 5%, you’re entering an intense battle for attention, competing against other brands that buyers are already considering. But if you ignore the 95%, you’re leaving money on the table – because when they do enter the market, they’ll be choosing from brands they already know and trust.

So, how do you win both the short-term game of demand capture and the long-term game of demand creation? Let’s break it down.


Winning the 5%: Capture Demand Like a Pro

For the small percentage of your audience that is ready to buy, your job is to make sure they find you first and choose you over the competition. To do this, you need to be:

🔥 Findable

When buyers start their journey, they turn to search engines, review sites, and comparison pages. If your brand isn’t showing up, you don’t exist in their decision-making process. Invest in SEO, paid search, and intent-based advertising to ensure you’re present when they’re actively looking.

💡 Clear & Compelling

A strong value proposition and irresistible offer can make the difference between being chosen or ignored. What makes your solution better, faster, or easier to use? The 5% is looking for a clear reason to pick you – make sure you provide it.

⚡ Fast & Frictionless

When buyers are ready, they don’t want hurdles. Complicated forms, slow response times, and a clunky buying process will push them toward your competitors. Streamline the customer journey – optimize your website, simplify sign-ups, and make your sales process as seamless as possible.


Winning the 95%: Build Demand Before They Need You

Most of your market isn’t buying today. But when they do, will they think of you first? If you aren’t actively building brand presence now, you won’t even be in the conversation when they’re ready to buy.

Here’s how you stay top-of-mind:

📢 Consistent Brand Messaging

Marketing is a long game. Your goal isn’t just immediate sales – it’s long-term brand awareness. If your brand is seen and remembered consistently, buyers are more likely to consider you when the time comes.

🔗 Category Entry Points

What triggers a buyer to enter the market? It could be company growth, budget renewals, a contract ending, or even an internal pain point. Position your brand to be associated with these triggers so that when a prospect enters the buying phase, they already link their need to your solution.

📆 Always-On Marketing

If you only advertise in bursts or when launching new products, you disappear when buyers aren’t in-market. Instead, spread your budget over time so that you’re consistently visible. When the 95% move into the buying phase, they should already be familiar with your brand.


The Takeaway

🔹 The 5% need to find you, fast.
🔹 The 95% need to remember you when it’s time.

Smart marketers play the long game and the short game – they capture demand today while creating future buyers for tomorrow.

So, ask yourself: Are you just chasing buyers – or creating them? 🚀

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