The primary objective of any company is to attract customers, this achievement assigns it a place or space in the market, then it must take root with the loyalty of the largest number of customers possible.
The importance of any company in the sector or market where it operates is reflected in its market share or share. This measures sales and is expressed as a percentage that indicates the lower or higher ratio between the sales obtained by the company and the total sales of the sector considered.
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They tend to believe that market share and market share correspond to different concepts, which is an error, because although they are terms with different meanings
In this article you will find:
Share:
It is the part or proportional portion of a whole.
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Participation:
It is the intervention in an event, event, act or activity, be it political, economic, religious, social, among others.
In marketing they are used to refer to the same event.
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What is Market Share or Market Share?
It is the percentage that a certain company or business has in an explicit market, which is closely related to the potential of market, because when estimating the potential value of the market, immediately after the company's sales, the calculation of the market share of the herself.
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Market share and market share is associated with the efforts made by the company regarding the marketing, considering aspects such as:
- Market segment.
- Potential clients and their geographic location.
- Reputation and brand value.
If, for example, in a textile sector 100 million units were sold per year, corresponding to a single company 60 million units the market share or share of said company would be 60%.
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This is a fairly simple example to easily understand the concept of market share, however to calculate said quota or participation official information published by market research entities or by them is used Business. It should be noted that this data comes from market studies that measure sales, acceptance, tastes and preferences of the potential customer.
Market share It is a fundamental component that allows us to understand business training today. This is a concept in constant change and it can influence so much that it is capable of changing the course, activity and position of the company.
It should be noted that due to the importance for the company of achieving and maintaining a high quota or participation in the market, they allocate efforts in the promotion and sale in addition to a strong investment.
However, despite the aforementioned, there are cases where they try to differentiate from in some way these economic terms and measures, the most common refers to the following concepts.
What is market share?
Market share represents the proportion or symmetry of sales in a given market, where different companies compete to achieve higher sales and there are generally some that control the market with a greater share.
In simple words, the market share for a company is the percentage of clients They prefer to buy your products or services, over the offer of other companies.
For example, in a locality there are three fast food restaurants, one of them reaches 60% of the hamburger sales in the city, so the Two other restaurants each achieve 20% of sales, the first restaurant has a 60% market share and the other two each have reached the 20%.
On the other hand, the market share It is usually used interchangeably with the term market share, however when looking for the difference as a concept without isolating it, it is clear that it is related to that of market share.
What is market share?
Market share refers to or is used to describe the degree of knowledge of a certain product or service among potential customers and what is the actual number of consumers who buy the product or service.
For example, using the segmentation of the target audience for sports stores, it is counted that they are men and women with ages understood between the ages of 20 and 30, but market studies show that only 10% of this target market actually goes to buy products sports, that 10% percent share of consumers that the sports industry manages to attract can be referred to as participation in the market.
To conclude, it is worth remembering that winning, increasing market share and reaching a greater share is one of the objectives that every entrepreneur who starts a business has in mind. business or company, already in the market companies increase their market share by removing customers from the competition or attracting new customers, for this it is vital to offer a good product or service.
