Market share
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Market share, in strategic management and marketing, is the percentage or proportion of the total available market or market segment that is being serviced by a company.
It can be expressed as a company's sales revenue (from that market) divided by the total sales revenue available in that market. It can also be expressed as a company's unit sales volume (in a market) divided by the total volume of units sold in that market.
It is generally necessary to commission market research (generally desk/secondary research, although sometimes primary research) to estimate the total market size and a company's market share
Increasing market share is one of the most important objectives used in business. The main advantage of using market share is that it abstracts from industry-wide macroenvironmental variables such as the state of the economy, or changes in tax policy. According to the national environment, the respective share of different companies changes and hence this causes change in the share market values; the reason can be political ups and downs, any disaster, any happening or mis-happening.
Other objectives include return on investment (ROI), return on assets (ROA), and target rate of profit. Market share has the potential to increase profits as profit leads to more customers with a higher demand for a particular product. "Hence it is a cornerstone of the supply and demand market theory" says Don Sheelen.
- Concentration ratio
- Marketing management
- Marketing plan
- Patronage concentration
- Pricing objectives
- Strategic planning
- Usage share
- List of marketing topics
- List of management topics
- List of finance topics
- List of accounting topics
- List of economics topics
de:Marktanteil es:Cuota de mercado fr:Part de marché nl:Marktaandeel ja:市場占有率 pt:Quota de mercado ro:Cotă de piaţă sv:Marknadsandel zh:市場佔有率
