Category: Market Shares

Two broad areas of growth – the market itself and market share

The opportunity for growth in unit sales is underpinned by two aspects:

1. The level of growth in the marketplace – that is, the growth phase of the product

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When to use market share?

The market share metric is relevant in the following circumstances:

• reasonably accurate information of most/all key competitors sales is available,
• the firm has a good understanding of the scope of its market/s and
• the competitive

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Here you can download the free Excel template to calculate market shares

Remember to check out all the free Excel templates available on Market Share Calculations

The market share spreadsheet should look like this when you open it…

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There are three free Excel templates available for download on this site. Please go to their download pages on the site, as follows:

Template for market shares and price premium

Template for relative market shares

Template for market concentration… Read more...

Hierarchy of effects model and share of minds and share of hearts

There are numerous hierarchy of effects models that are covered in marketing literature. Probably the most common one was developed in 1961 and is a six stage model … Read more...

Unit market share or dollar market share?

When calculating relative market shares, a decision needs to be made of whether to monitor relative market shares based upon unit sales or based upon revenue share? Most firms would utilize and … Read more...

Relative Market Shares – Not Against the Market Leader

Not all firms are interested in bench-marking themselves against the market leader – which is the more common calculation of relative market shares.

Indeed, for many small firms, this may … Read more...

As a benchmark against the market leader

Relative market share is a marketing metric that is essentially used as a benchmark against the market leader. Market shares will move around for many reasons and underlying factors, but this metric allows … Read more...

Here is the download link for the Free Excel template for relative market shares

Please check out all the free Excel spreadsheets available for download on Market Share Calculations.

The relative market shares template should look like this…

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What is the Herfindahl-Hirschman index?

The Herfindahl index is a variation of the market concentration marketing metric. Instead of a simple sum of the market shares of the larger brands in the marketplace, the Herfindahl index applies a multiple (squared) … Read more...

Here you can download the free Excel template for market concentration

This template also calculates theHerfindahl-Hirschman index.

Please check out the other free Excel templates on this website.

The spreadsheet should look like this…

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What is market concentration?

The market concentration marketing metric uses unit market shares to determine the extent of dominance by the large players in the marketplace. It is a key metric to measure the intensity of competition within a … Read more...

Important Note: There are lots of ways of looking at market share – see list below.

It would be a mistake for a firm to rely upon one market share measure only. Assuming that the firm has access to competitive … Read more...

Market share is a generally easy metric to calculate provided you have access to unit and revenue sales. This is relatively common in a retail setting where the sales information is captured by a point-of-sale terminal on an industry basis.… Read more...

What is the price premium metric?

Price premium refers to the brand’s price to the consumer relative to a key competitors price or relative to the average price charged in the marketplace.

This particular marketing metric is often of interest … Read more...

As we know the market share formula is as shown in the following diagram:

The three components of market share

It is possible to decompose market share into three components, namely

1. Share of customer
2. Penetration share and
3. Usage index

Let’s … Read more...

Market share is a measure of how the brand/firm is performing relative to its competition.

The measurement of market share is a relatively common marketing metric. There are two main types of market share metrics, namely unit market share and … Read more...

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