Market Share in the BCG Matrix
For those people familiar with the BCG matrix, you should recall that the horizontal axis measures relative market share. And this factor is the more important of the two dimensions in the model.
Variations of Market Share
It would be a mistake for a firm to rely upon one market share measure only. Assuming that the firm has access to competitive sales information, then a variety of market share metrics should be calculated and reviewed.
Examples for Calculating Market Shares
Market share is an easy metric to calculate provided you have access to unit and revenue sales. Here are some examples, and grab the free market shares Excel template as well.
Price Premium Index
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. There are two ways to calculate price premium, depending upon whether or not we have access to market share information.
Decomposing Market Share
Did you know that market share is made up of three underlying components? The factors are share of customer, penetration share and usage index. Find out more!
Market Shares: Overview and Formulas
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 revenue market share. Unit market share In marketing the word “unit” refers to individual product …
