Market Share
What is Market Share in Market Research?
Market Share is the percentage of total sales in a market captured by a particular company or product. It reflects a company's competitiveness and position within its industry.
Synonyms: market portion, market percentage, sales share, industry share
Why Market Share is Important
Market Share helps businesses understand their standing compared to competitors. A higher market share often indicates strong brand presence, customer preference, and business growth potential.
How Market Share is Used
Companies use market share to evaluate their performance, set strategic goals, and make informed decisions about marketing, product development, and sales efforts.
Examples of Market Share
If a smartphone brand sells 30 out of 100 smartphones sold in a market, its market share is 30%. This metric helps compare brands and track changes over time.
Frequently Asked Questions
- What does market share tell a business? It shows how much of the market a company controls compared to competitors.
- How is market share calculated? By dividing a company's sales by total market sales and multiplying by 100 to get a percentage.
- Why is market share important in market research? It provides insights into competitive dynamics and helps guide business strategies.
- Can market share change quickly? Yes, market share can fluctuate due to factors like new product launches, marketing campaigns, or changes in consumer preferences.
