What is a market share in business?

What is a market share in business?

Market share is the percentage of total sales (by value) or total output that a business has in a specified market. For example, for many years Coca Cola has enjoyed a market share of around 40-45% of sales of carbonated drinks in the United States.

How do you determine market share?

A company's market share is its sales measured as a percentage of an industry's total revenues. You can determine a company's market share by dividing its total sales or revenues by the industry's total sales over a fiscal period. Use this measure to get a general idea of the size of a company relative to the industry.

Why is it important to know market share?

Why is a true, unbiased calculation of your market share so important? Because market share is a key indicator of market competitiveness, it enables executives to judge total market growth or decline, identify key trends in consumer behavior and see their market potential and market opportunity.

What type of data is market share?

Market share represents the percentage of an industry, or a market's total sales, that is earned by a particular company over a specified time period. Market share is calculated by taking the company's sales over the period and dividing it by the total sales of the industry over the same period.

What is high market share?

A higher market share usually means greater sales, lesser effort to sell more and a strong barrier to entry for other competitors. A higher market share also means that if the market expands, the leader gains more than the others.

What is an example of market share?

Market share is the percentage of the total revenue or sales in a market that a company's business makes up. For example, if there are 50,000 units sold per year in a given industry, a company whose sales were 5,000 of those units would have a 10 percent share in that market.

What is another word for market share?

“They had lost market share.”...What is another word for market share?

readership	distribution
niche	currency
sales	sales figures

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What factors affect market share?

Factors affecting stock market

• Supply and demand. There are so many factors that affect the market. ...
• Company related factors. ...
• Investor sentiment. ...
• Interest rates. ...
• Politics. ...
• Current events. ...
• Natural calamities. ...
• Exchange rates.

How do you maintain market share?

How to Increase Market Share?

1. Innovation. Innovation is an excellent method of increasing market share. ...
2. Lowering prices. A company can also expand its market share by lowering its prices. ...
3. Strengthening customer relationships. By strengthening their existing customer relationships. ...
4. Advertising. ...
5. Increased quality. ...
6. Acquisition.

How do I get more market share?

How to Increase Market Share?

1. Innovation. Innovation is an excellent method of increasing market share. ...
2. Lowering prices. A company can also expand its market share by lowering its prices. ...
3. Strengthening customer relationships. By strengthening their existing customer relationships. ...
4. Advertising. ...
5. Increased quality. ...
6. Acquisition.

What is market share and why is it important?

• Market share is the most important metric that marketers can use in order to judge the effectiveness of marketing campaigns. This includes branding initiatives, advertising campaigns, CRM programs and any other revenue generation effort. Market share metrics are more important than ROI measurements.

How to calculate market share?

• 1) Select a fiscal period. The first step to calculating a company's market share is to identify the fiscal period you want to review. 2) Calculate the company's sales. The next step is to calculate the total sales for the company in question for the identified period. 3) Calculate industry sales. After calculating total sales for an individual company, calculate total sales for the entire market. 4) Divide. The final step is to divide the individual company's total sales by the industry's total sales. ...

How to evaluate market shares?

• Determine the market share of the company you're evaluating. To determine market share by revenue, divide gross revenues of the company for a specified period, which are the total sales not accounting for returns, by the total earnings of the market for that period. Then multiply the result by 100 for the market share presented as a percentage.

How can I improve my market share?

• Companies increase market share through innovation, strengthening customer relationships, smart hiring practices, and acquiring competitors. A company's market share is the percentage it controls of the total market for its products and services. Market share is calculated by measuring...