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 market. In the field of marketing, the different market structures of monopoly, oligopoly , perfect competition … Read more…

Market share in the BCG Matrix

Quick Overview of the BCG Matrix For those people familiar with the BCG matrix, you should recall that the horizontal axis measures relative market share. This is the more important of the two dimensions. A high or low relative market share makes the difference between a cash cow and a dog or a star and … Read more…

Variations of market share

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 sales information, then a variety of market share metrics should be calculated and reviewed. Market … Read more…

Examples for calculating market shares

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. However, in some industries access to market share information can only be obtained by market … 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 to firms with strong brand equity that are looking to charge a price above the … Read more…

Decomposing Market Share

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 Share of customer Penetration share and Usage index Let’s work through an example for a pizza market in a small town to understand how … Read 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 … Read more…