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ET Home › Definitions › Marketing › Market Share
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Definition of 'Market Share' Definition: Out of total purchases of a customer of a product or service, what percentage goes to a company defines its market share. In other words, if consumers as a whole buy 100 soaps, and 40 of which are from one company, that company holds 40% market share.
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Description: There are various types of market share. Market shares can be value or volume. Value market share is based on the total share of a company out of total segment sales. Volumes refer to the actual numbers of units that a company sells out of total units sold in the market. The value-volume market share equation is not usually linear: a unit may have high value and low numbers, which means that value market share may be high, but volumes share may be low. In industries like FMCG, where the products are low value, high volume and there are lots of freebies, comparing value market share is the norm.
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The significance of market share: Market share is a measure of the consumers' preference for a product over other similar products. 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. By the same token, a market leader - as defined by its market share - also has to expand the market, for its own growth.
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How much market share is enough? Usually, gaining 100% market share is not a good idea, as the risk associated with market actions, like fashion changes, product / use changes will impact the company heavily. Also, the cost and effort to maintain 100% market share against nimble, local or more aggressive smaller competitors can be very high and killing. Most companies decide on a target market share beyond which the cost of acquiring marketshare is more than the profit from that incremental gain.
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Definition: A market leader could Definition: Marketing intelligence be a product, brand, company, is the external data collected by Long Weekend Plans for 2018: organisation, group name which a company about a specific Eight Holiday Inspirations to has the highest percentage of market which it wishes to enter, Read More Read More make this the best year ever total sales revenue of a particular to make decisions. It is the first market. Market leader dominates set of data which the company the market by influencing the analyses before making any customer loyalty towards it, investment decision. Description: Related Definitions distribution, pricing, etc. Marketing intelligence is usually Description: Market leader can be the first data set analysed by a attributed to a firm which has the 5 Forces Analysis Of The company about a specific Random Sampling Reference Price Loss Leaders largest market share in a given Environment market. It could be related to Random sampling is a part of Reference price is also known Loss leaders are high volume, the sampling technique in which as competitive pricing, because high profile brands or products industry. The term could also be The five forces model of population age in that area, each sample has an equal here the product is sold just that are sold by retailers with the analysis was developed by ascribed to a firm which has the infrastructure facilities, spending probability of being chosen. A below the price of a competitor’s intention to attract customers Michael Porter to analyze the highest profitability margin as habits of consumers, state or sample chosen randomly is product. Reference price is the into their premises, with the competitive environment in well. The market share is government regulations etc. meant to be an unbiased cost at which a manufacturer or hope that those customers will which a product or company calculated by dividing the volume Marketing intelligence is all about Endorsements Product Ambient Advertising Conspicuous Consumption representation of the total a store owner sells a particular end up buying other goods as works. Description: There are of goods sold by a particular firm gathering information on various Endorsements are a form of A product is the item offered for Ambient Advertising is about population. If for some reasons, product, giving a hefty discount Conspicuous consumption is the well, once inside. Examples five forces that act on any by the total number of units in the data sets, analysing the advertising that uses famous sale. A product can be a service placing ads on unusual objects practice of purchasing goods or compared to its previously could be steeply discounted product/ brand/ company: 1. The the sample does not represent market. Market leadership as a information, breaking down the personalities or celebrities who or an item. It can be physical or or in unusual places where you services to publicly display the population, the variation is advertised price. Description: electronics, or consumer goods, threat of entry: competitors can concept holds much relevance in data into small subsets and the command a high degree of in virtual or cyber form. Every wouldn’t usually expect to have wealth rather than to cover basic called a sampling error. Reference pricing, in simple or garments. A zero percent loan enter from any industry, the internet age because over a distribution of information to the recognition, trust, respect or product is made at a cost and an advertisement. Description: needs. Description: The word Description: Random sampling terms, is known as that price for cars is a loss leader example channel, function, form or period of time we have seen large awareness amongst the people. relevant department of the each is sold at a price. The price Ambient advertising evolved as 'Conspicuous' here means lavish which users compare with for the dealer. Descri marketing activity. How best can is one of the simplest forms of Such people advertise for a that can be charged depends on a concept because it has a or wasteful spending. This kind number of companies becoming company. A purchase collecting data from the company take care of the Get a Quote Browse Companies product lending their names or the market, the quality, the lasting impact on the minds of of spending is generally made market leaders. Market leader department in a company would threat of new entrants? 2 images to promote a product or A B C Dmarketing and the segment that E F G H I J K L M N O P Q R S consumers which makes it more T U V W X Y Z | 1 2 3 4 5 6 7 8 by people who have 9 often enjoys the first -mover need a different data set under Get Quote Type Company Name service. Advertisers and clients is targeted. Each product has a effective. Ambient advertising is considerable amount of advantage in new markets. Let’s marketing intelligence, while a Browse Mutual Funds hope such approval, or useful life after which it needs all about creativity, and how disposable income to spend on look at some examples of market sales department would need endorsement by a celebrity, will goods and services which are A B C Dreplacement, and a life cycle E F G H I J K L M N O P Q R S effectively the advertiser is able T U V W X Y Z leaders in the digital space. something different. There are influence buyers favourably. For after which it h to communicate the message not necessary, but are more Microsoft was the first company four main corner stones of example, Sach luxurious in nature. to launch operating system marketing intelligence. The first Live Market Industry About Us (Windows) and web browser one is competitor intelligence, the News Newsletters Create Your Own Ad (Internet Explorer) in the market. others are product intelligence, Portfolio Commodities Advertise with Us Apple as a company was the first market understanding and one to introduce the concept of customer understanding. Let’s Powered by Mobile Speed Terms of Use & Grievance Redressal portable media device in which understand each one of them in Live TV Blogs Privacy policy music can be stored on a drive, detail. Competitor intelligence is ipod. Market leadership is not a legal method of obtaining Biz Listings RSS about sales and dominance but it information about products in a is more about how relevant the competitor’s portfolio. It is about Download it from Download it from Download it from product is for the audience. Apple analyzing strengths and FOLLOW US APP STORE GOOGLE PLAY Windows Store generates more revenue by weaknesses of the competitor. selling iPods compared to other The basic goal of competitive manufacturers who are selling intelligence is to make better Other Times Group news sites Hot on the Web MP3 players. It is all about business decisions. Product | | Pune Mirror | Bangalore Mirror | Ahmedabad Mirror | ItsMyAscent | Share Market | GST | Income Tax Slabs | Aadhaar Card | How to Save Income Tax | innovative ideas which will help Intelligence is related to gathering Education Times | Brand Capital | Mumbai Mirror | Times Now | Indiatimes | | Mutual Funds | Tax Saving Guide | Sensex Today | Nifty Bank | Sensex | Income Tax the company to connect with the information about your own | | Go Green | AdAge India | Eisamay | IGN India | NavGujarat Samay Calculator | Karnataka Election 2018 relevant audience. The company product. The focus around | Times of India | Samayam Tamil | Samayam Telugu | Miss Kyra | Bombay Times | tries to introduce those products product intelligence is on Filmipop | BrainBaazi | BrainBaazi APP in the market which can add gathering information about the Services value to the customer. Market quality and performance of the Book print ads| Online shopping | Matrimonial | Astrology | Jobs | Tech Community | leaders often unveil products product. This is usually an Living and Entertainment Property | Buy car | Bikes in India | Free Classifieds | Send money to India | Used Cars which can redefine the customer automated process. With the help Timescity| iDiva | Entertainment | Zoom | Healthmeup | Luxpresso | Gadget Reviews | | Restaurants in Delhi | Remit to India | Buy Mobiles | Listen Songs | News | experience in terms of product of this knowledge, the company Titanium & Platinum Credit Card | Online Songs | MensXP | Hotels | Travel TimesMobile | Real Estate Developers | Restaurant Deals in Delhi | Car Insurance | quality, longevity, ease of tries and makes the user Destinations | Cricbuzz | Recipes | Gaana | Happytrips | Getsmartapp Gadgets Now | Free Business Listings | CouponDunia | Remit2India | Techradar | operating that product etc. experience better or makes AliveAR | Getsmartapp App | ETMoney Finance App | Feedback | Auto changes in the product itself to Interest Network make it safer or add new itimes features. Market Understanding is a concept wherein the company tries to understand the performance of the product in which it is already operating as well as looks at other markets Hindustan Aeronautics Share Price SEBI where it wants to launch its product thoroughly. Finally, Share Market Videocon understanding the customer is the utmost important aspect in Mahavir Jayanti ISRO GSAT-6A satellite the life of any product. It is key to the success of the product Fortis RBI pre- and post-sales.
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