and NICHE MARKETING

MARKET SHARE

MARKET SHARE

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.

HOW MARKET SHARE WORKS

Market Share = (Particular Company's Sales Revenue in Time Period X) / (Relevant Market's Total Sales Revenue in Time Period X)

Let's assume Company XYZ sells $50 million a year in widgets. If the total amount of widgets sold from all companies within the market totals $100 million, then Company XYZ has a market share equal to 50%.

Market Share = ($50 million) / ($100 million)

WHY MARKET SHARE MATTERS

As the market for a good or service grows, many analysts view the maintenance or increase in market share as a sign of a company's competitiveness. Increases in market share might come from innovation, broadening demographic appeal, lower prices, or simply advertising.

COMPETITION

The struggle between companies for customers

Why do you want to know about your competition’s market share?

How do you identify your competitors?

NICHE MARKETING

Concentrating all marketing efforts on a small but specific and well defined segment of the population.

Examples ESPN, STAR Sports – target a niche of sports

lovers Aeropostale, MTV – targets youth Glamour magazine, Lifetime TV– targets

women

MASS MARKETING

An attempt to appeal to an entire market with one basic marketing strategy utilizing mass distribution and mass media.

MASS MARKETING VS. TARGET MARKETING

WHY?