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. Strategic management is the art science and craft of formulating implementing and evaluating cross-functional decisions that will enable an organization to achieve its objectives In popular usage "marketing" is the promotion of products especially Advertising and Branding However in professional usage the term has a wider meaning of Sao Paulo Stock Exchangejpg|thumb| Virtual market arena where buyer and seller are not present and trade via intemediates and electronical information A market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs
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. A business (also called firm or an enterprise) is a legally recognized organizational entity designed to provide goods and/or services to 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. Definition Environmental scanning is a process of gathering analyzing and dispensing information for tactical or strategic purposes Tax policy is the government's approach to Taxation, both from the practical and normative side of the question 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. In Finance, rate of return ( ROR) also known as return on investment ( ROI) rate of profit or sometimes just return, is The Return on Assets (ROA percentage shows how profitable a company's assets are in generating revenue Market share has the potential to increase profits as profit leads to more customers with a higher demand for a particular product.
See also
- Concentration ratio
- Marketing management
- Market dominance
- Market share analysis
- 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
External links
- A Model of Market Shares I and A Model of Market Shares II by Fiona Maclachlan, The Wolfram Demonstrations Project. In Economics, the concentration ratio of an Industry is used as an indicator of the relative size of firms in relation to the industry as a whole Marketing management is a Business discipline focused on the practical application of marketing techniques and the Management of a firm's marketing resources Market dominance is a measure of the strength of a Brand, product, service, or firm, relative to competitive offerings Market share analysis is an important part of Market analysis and indicates how well a firm is doing in the marketplace compared to its competitors A marketing plan is a written document that details the necessary actions to achieve one or more marketing objectives Patronage concentration is a term used in Marketing. It is the share of an individual consumer's expenditures in an industry that is spent at one company Pricing objectives or goals give direction to the whole Pricing process Strategic planning is an Organization 's process of defining its Strategy, or direction and making decisions on allocating its resources to pursue this strategy This is a list of marketing topics. Marketing fundamentals ] Consumer Business Marketing This is a list of articles on general management and strategic management topics Topics in Finance include Fundamental financial concepts Finance an overview Arbitrage Following is a list of accounting topics Accounting Ethics Accounting for risk Accounting information system This aims to be a complete list of the articles on Economics.
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