Marketing intelligence is the external data collected by a company about a specific market which it wishes to enter, to make decisions. It is the first set of data which the company analyses before making any investment decision.
At its essence, market share is the percentage of consumers that a company has captured from its specific, desired market within an industry.
Market Share Definition Every industry has a target market, and each company within an industry has sold to a percentage of the market.
That is market share. Market share is calculated on a national level, as well as on more regional and local levels, to determine specific market share. The most basic way of calculating market share is to take the total number of sales for a company and then divide that number by the total sales for the industry.
The market share for XYZ Electronics is 5 percent. Companies use this number to evaluate their respective strength in the market with their target buyers. Market share can be broken down into very specific categories to let a company know where it has a competitive advantage. The television example could be further broken down into television sale segments such as plasma, LED or 3D-televisions.
It could also be broken down into geographic regions. A company that has a 5-percent market share nationally in an industry might feel very strong about itself if it has one location in a small state.
A market share of 5 percent might not be a great number, if that company has 50 locations in each of the 50 states. This has to do with the economies of scale. The larger the enterprise, the better it can serve larger numbers of people in a more cost-efficient manner. Goods or supplies are bought for deeper discounts, because of large wholesale orders.
Thus, even at the same price point as its competitors, a larger company that has a greater market share can have a higher net profit, making it a stronger company overall. It also enables the company to offer more promotions or sales, thus driving market share even higher, as the company captures new customers from its competitors.
Market share tends to be a driving force within a company that has a compounding effect. The larger the company, the more efficiently it can offer products; thus, the more effective that company is in capturing market share. As it captures more market share, this cycle starts again. It is possible to have too much market share.
This tends to affect some industries more than others. After all, Walmart would be happy to sell food, toys, clothing and more across the board without competition.
But there are government antitrust laws, which prevent businesses from getting too big, thereby eliminating competition. Without competition, prices become set by one entity and are often higher than when competition exists.
By capturing the right amount of market share, these types of companies are profitable, but if a major catastrophe occurred, they would not be overextended with percent market responsibility. Evaluating Market Share A small business owner might not be concerned with his market share compared to national industry standards.
At the same time, he might want to know who is doing a lot of sales nationwide in his industry to analyze similarities and differences in various markets.
For example, a car dealership is less concerned with the national market share standards as it is with the local demographic.Mobile market share and desktop market share data.
Market share for mobile, browsers, operating systems and search engines | NetMarketShare Market share for mobile, browsers, operating systems, search engines and social media. Share Market Today | Share Market Live updates: Get all the Latest Share Market News and Updates on The Economic Times.
Share Market . Canalys ranked the three providers in terms of market share, with AWS in the lead owning about a third of the market, Microsoft in second with about 15 percent, and Google sitting around 5 percent: What’s clear: In the case of AWS vs Azure vs Google Cloud market share – AWS still has the lead.
Market share is one of the most important metrics used by executives in any business. Through our Market Share Analysis methodology, clients understand how share is allocated among technology providers in over 30 key markets. What is 'Market Share' Market share represents the percentage of an industry, or market's total sales, that is earned by a particular company over a specified time period.
Market share is calculated by taking the company's sales over the period and dividing it by the total sales of the industry over the same period. Share Market Live Charts, News, Analysis, IPO News and more. Share Market Today | Share Market Live updates: Get all the Latest Share Market News and Updates on The Economic Times.
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