Quick Answer: What Is Our Market Share?

What is market share and why is it important?

A company’s market share is an indicator of how well it is doing in relation to its competitors.

Simply put, market share is a comparison of a company’s total sales in relation to sales in that industry, usually in a particular country or region, over a specified time period..

What is a good percentage of market share?

And, in fact, it might not be desirable. Gaining market share is easy when your current share is relatively small. Increasing that share from 5% to 10% to 15% is relatively easy. You “merely” need to target the right customers (or segments), communicate a well focused value proposition, and service them well.

How do you steal market share?

Following are some ideas to help you think in simpler terms when it comes to stealing market share and customers from your competitors:Focus on Low Hanging Fruit. … Find a Niche and Own It. … Be Flexible and Ready to React Quickly. … Be Social. … Know When to Go With Your Gut. … Your Next Steps to Steal Market Share.

How do you find out 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.

How do you increase sales?

If you want to boost sales and don’t know how, here are 9 awesome ways to do just that:Focus on the existing customers. … Learn about competitors. … Innovation and unique products. … Cultivate value. … Build a customer service approach. … Customer relations. … Promotion. … Marketing.More items…•

Why do companies lose market share?

There are three key strategies that companies often use to regain market share once it has been lost: pricing changes, promotional changes, and product changes. All three strategies have unique benefits—and all are risky for different reasons.

How do you maintain market share?

Five Ways Your Business Can Grab Market Share TodayStay relevant through innovation. One great way to gain market share is to spot new trends ahead of competitors. … Respond to customers — fast. … Use customers’ ideas. … Snap up competitors. … Be more flexible.

What is a market share example?

Every industry has a target market, and each company within an industry has sold to a percentage of the market. That is market share. … For example, assume that XYZ Electronics sold $5 million in televisions in the United States, in a total market in which $100 million in televisions were sold during the same period.

What is a target market example?

Gender and Age Small businesses often target customers by gender or age. For example, a women’s clothing retailer directs its promotional efforts at women. … Similarly, some small companies market to specific age groups. Companies selling life insurance for people close to retirement age may target people 50 and over.

How do companies gain 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 the total market for its products and services.

What is a target market share?

A target market refers to a group of customers to whom a company wants to sell its products and services, and to whom it directs its marketing efforts. Consumers who make up a target market share similar characteristics including geography, buying power, demographics, and incomes.

What are the 3 target market strategies?

Three main activities of target marketing are segmenting, targeting and positioning. These three steps make up what is commonly referred to as the S-T-P marketing process.

How do banks increase market share?

So let’s discuss the many ways on how you can increase millennial market share for your bank:Be less of an “institution”. Be more like their “friends” … Start with your website: Are you “supportive” enough? By now, self-service style online banking should be a standard. … Bringing your interaction to mobiles?

Why is it important to increase market share?

Increasing their market shares puts a company at a vantage point and ultimately increases its competitive advantage. Having a higher market share also postures a company to better prices from suppliers and increases their buying power. This is because of their large volumes of orders.

How do you protect your market share?

The market leader has three options to keep its market position: expand the total market, protect market share, or expand market share. Creating more usage, new uses, or users expands markets. Leaders can protect market share by monitoring their position and rushing to remedy any weaknesses.