ddd

1. Airlines competing for market share
of Europe-Japan revenue flight
market: Swiss and SAS
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.
"Marketers need to be able to translate and incorporate sales targets
into market share because this will demonstrate whether forecasts
are to be attained by growing with the market or by capturing share
from competitors. The latter will almost always be more difficult to
achieve. Market share is closely monitored for signs of change in
the competitive landscape, and it frequently drives strategic or
tactical action."[1] Additionally, market share is a key metric in
understanding performance relative to the growth of the market as measurement of internal sales growth (or
decline) only may be a result of similar growth or declines in the industry being measured.[2]
Increasing market share is one of the most important objectives of business. The main advantage of using
market share as a measure of business performance is that it is less dependent upon macro environmental
variables such as the state of the economy or changes in tax policy.
In the United States market, however, increasing market share may be dangerous for makers of fungible
and potentially hazardous products such as medicine, due to a US-only legal doctrine called market share
liability.
Purpose
Construction
Methodologies
See also
References
Market share is said to be a key indicator of market competitiveness, i.e. how well a firm is doing against its
competitors. "This metric, supplemented by changes in sales revenue, helps managers evaluate both
primary and selective demand in their market. That is, it enables them to judge not only total market growth
or decline but also trends in customers’ selections among competitors. Generally, sales growth resulting
from primary demand (total market growth) is less costly and more profitable than that achieved by
capturing share from competitors. Conversely, losses in market share can signal serious long-term problems
that require strategic adjustments. Firms with market shares below a certain level may not be viable.
Similarly, within a firm’s product line, market share trends for individual products are considered early
Contents
Purpose

2. indicators of future opportunities or problems."[1] Also,"Market share competition drives companies to
support climate change policies with a view to imposing costs on domestic competitors"
[3]
Research has
also shown that market share is a desired asset among competing firms.[4] Experts, however, discourage
making market share an objective and criterion upon which to base economic policies.[5] The
aforementioned usage of market share as a basis for gauging the performance of competing firms has
fostered a system in which firms make decisions with regard to their operation with careful consideration of
the impact of each decision on the market share of their competitors.
It is generally necessary to commission market research (generally desk/secondary research) to determine.
Sometimes, though, one can use primary research to estimate the total market size and a company's market
share.
"Market share: The percentage of a market accounted for by a specific entity."[1]
"Unit market share: The units sold by a particular company as a percentage of total market sales,
measured in the same units."[1]
Unit market share (%) = 100 * Unit sales (#) / Total Market Unit Sales (#)
"This formula, of course, can be rearranged to derive either unit sales or total market unit sales from the
other two variables, as illustrated in the following:"[1]
Unit sales (#) = Unit market share (%) * Total Market Unit Sales (#) / 100
Total Market Unit Sales (#) = 100 * Unit sales (#) / Unit market share (%)
"Revenue market share: Revenue market share differs from unit market share in that it reflects the prices
at which goods are sold. In fact, a relatively simple way to calculate relative price is to divide revenue
market share by unit market share."[1]
Revenue market share (%) = 100
Sales Revenue ($) / Total Market Sales Revenue($)
"As with the unit market share, this equation for revenue market share can be rearranged to calculate either
sales revenue or total market sales revenue from the other two variables."[1]
Market share can be decomposed into three components, namely penetration share, share of customer, and
usage index. These three underlying metrics can then be used to help the brand identify market share
growth opportunities.[6]
In a 2010 survey of nearly 200 senior marketing managers, 67% responded that they found the revenue or
"dollar market share" metric very useful, while 61% found "unit market share" very useful.[1]
"Although market share is likely the single most important marketing metric, there is no generally
acknowledged best method for calculating it. This is unfortunate, as different methods may yield not only
different computations of market share at a given moment, but also widely divergent trends over time. The
Construction
Methodologies

3. reasons for these disparities include variations in the lenses through which share is viewed (units versus
dollars), where in the channel the measurements are taken (shipments from manufacturers versus consumer
purchases), market definition (scope of the competitive universe), and measurement error."[1]
It is generally accepted that no single source will provide a fully comprehensive market share, as most
methods of calculation are incomplete. Methods such as POS aggregation may omit specific retailers or
brands from the calculation, while methods such as collecting consumer data may rely on recall or
collecting data from a representative sample. The best method of market share calculation depends on the
industry and the methods available.
Usage share (disambiguation)
Market value
Market power
Market share analysis
As of April 10, 2012, this article is derived in whole or in part from Marketing Metrics: The Definitive
Guide to Measuring Marketing Performance by Farris, Bendle, Pfeifer and Reibstein (https://books.google.
com/books?id=7Ptw4nBoGmkC&printsec=frontcover&dq=Marketing+Metrics:+The+Definitive+Guide+t
o+Measuring+Marketing+Performance&hl=en&sa=X&ei=Uj18T-6LKtH6ggekmYTZCw&ved=0CDkQ6
AEwAA#v=onepage&q=Marketing%20Metrics%3A%20The%20Definitive%20Guide%20to%20Measuri
ng%20Marketing%20Performance&f=false). The copyright holder has licensed the content in a manner
that permits reuse under CC BY-SA 3.0 and GFDL. All relevant terms must be followed.
1. Farris, Paul W.; Neil T. Bendle; Phillip E. Pfeifer; David J. Reibstein (2010). Marketing
Metrics: The Definitive Guide to Measuring Marketing Performance. Upper Saddle River,
New Jersey: Pearson Education, Inc. ISBN 0137058292. The Marketing Accountability
Standards Board (MASB) endorses the definitions, purposes, and constructs of classes of
measures that appear in Marketing Metrics as part of its ongoing Common Language:
Marketing Activities and Metrics Project (http://www.themasb.org/projects/underway/).
2. "What is Market Share?" (https://stevensoncompany.com/what-is-market-share/). The
Stevenson Company. 2019-06-12. Retrieved 2019-10-09.
3. Kennard, Amanda (2020). "The Enemy of My Enemy: When Firms Support Climate Change
Regulation". International Organization. 74 (2): 187–221. doi:10.1017/S0020818320000107
(https://doi.org/10.1017%2FS0020818320000107). S2CID 219085357 (https://api.semantics
cholar.org/CorpusID:219085357).
4. J. Scott Armstrong and Kesten C. Greene (2007). "Competitor-oriented Objectives: The Myth
of Market Share" (https://marketing.wharton.upenn.edu/files/?whdmsaction=public:main.file&
fileID=685). International Journal of Business. 12 (1): 116–134. ISSN 1083-4346 (https://ww
w.worldcat.org/issn/1083-4346).
5. J. Scott Armstrong and Fred Collopy (1996). "Competitor Orientation: Effects of Objectives
and Information on Managerial Decisions and Profitability" (https://web.archive.org/web/201
01217085359/http://marketing.wharton.upenn.edu/ideas/pdf/armstrong2/compet.pdf) (PDF).
Journal of Marketing Research. American Marketing Association. 23 (2): 188–199.
doi:10.2307/3152146 (https://doi.org/10.2307%2F3152146). JSTOR 3152146 (https://www.j
stor.org/stable/3152146). Archived from the original (http://marketing.wharton.upenn.edu/ide
as/pdf/armstrong2/compet.pdf) (PDF) on 2010-12-17.
See also
References

4. Retrieved from "https://en.wikipedia.org/w/index.php?title=Market_share&oldid=1071050441"
This page was last edited on 10 February 2022, at 16:27 (UTC).
Text is available under the Creative Commons Attribution-ShareAlike License 3.0;
additional terms may apply. By
using this site, you agree to the Terms of Use and Privacy Policy. Wikipedia® is a registered trademark of the
Wikimedia Foundation, Inc., a non-profit organization.
6. Fripp, Geoff, “Decomposing Market Share” (http://www.marketingstudyguide.com/how-to-dec
ompose-market-share-video/) The Marketing Study Guide