When to use market share

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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Share of hearts

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...

Market concentration

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...

Price premium metric

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...

Decomposing Market Share

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

market share formulaThe 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

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