What is a market? It is a meeting place for supply and demand. In the developing economic world, special attention is paid to marketing policy. Marketing is directly involved in the life of the market and is aimed at making an exchange between the seller and the buyer.
The number of companies, various firms and factories is increasing significantly every day, all of them are trying to improve their sales and take a leading position among other competing enterprises. In order to determine where the company is located by the number of sales, it is necessary to calculate the share of sales in a particular consumption sector.
Market share is a marketing indicator that can be expressed both in physical and quantitative terms. Increasing market share is very important for a firm or company, since it is a basic element of profit and income. Marketing monitoring allows you to accurately see the picture of future sales of a new product.
The following indicators influence the growth of market share:
- There is such a thing as market segmentation.
A market segment is dividing it into certain categories of consumers for which the acquisition of one type of product is inherent . Companies conduct market research on market areas in order to anticipate customer reactions to new products in storefronts.
Improving sales, introducing new products into consumer circulation, companies increase the number of their own sales, thereby increasing the market share in this target segment.
- Also one important factor is competition, which significantly affects the growth of market share. The competitiveness of firms depends on how professionally they were able to identify the needs of consumers, design appropriate products, establish communications, establish an appropriate price threshold, organize a service and delivery service.
- Company management should stimulate employee motivation. The more efficient the sales managers work, the higher the result of sales of products, respectively, and the market share will grow rapidly.
- The heads of large companies pay great attention to positions in the international market, they invest huge capital in order to stay in the place of honor. Provide an uninterrupted flow of advertising in order to expand and promote your product to the world market level. The higher the company is moving on the world stage, the higher is the market share.
Calculation of market share and its increase
Many large companies have marketing research departments. Their task: determination of market share and its increase. In their work, they use targeted and strategic planning based on the information collected and processed.
The market share is equal to the ratio of the existing real sales volume to the total volume of goods and services sold or controlled under market conditions. An important criterion in calculating the market share is the determination of the volume of goods and services that the company provides.
Market volume is the number of sales that have been carried out on it for a certain amount of time.
Specialists calculate the volume of production, the available export and import, the number of possible buyers of the goods, analyze the state statistics for various economic sectors. After the above marketing analyzes, the development of strategic planning to increase market share begins. Calculating your share and capacity is a rather painstaking work of marketers and product sales managers, since the work of one sector is impossible without another. An increase in market share occurs when the best innovative product is created in the symbiosis of a buyer and a seller.