Market Share: The secrets for businesses to lead the market

Market share is a valuable metric to gauge a business’s performance in the current economy. Let’s find out what Market share is, how to calculate Market share, and the secrets to help enterprises to lead the market.

1. What is Market Share?

So what is Market Share? It refers to the share or percentage of the market that a company or an organization occupies. In other words, the market share of a company is the total sales of that company compared to the total sales of the industry in which the company operates.

For example, the total purchase volume of the general consumer is 100 tubes of toothpaste, and a certain manufacturer of toothpaste sells 60 tubes. Therefore, it implies that the company holds a 60% market share.

2. Formula to calculate Market Share

This formula is understood as the company’s total sales during a particular period and the total sales of the industry in which the company operates during that period.

3. What are the benefits that businesses receive from Market Share?

Many factors affect market share. However, there are six main factors that CleverAds has synthesized are:

• Scale up:

Increasing the company’s Market share allows the company to operate on a larger scale and increase profitability. It also helps the company develop a cost advantage over its competitors.

• Increase sales:

Increasing Market share also helps boost the company’s total revenue. When consumers see that their colleagues, friends, and relatives are using your product, they will be motivated to buy it.

• Increase customer base:

The increase in market share also helps the company expand its customer base. When most consumers are loyal to a brand or product, the rest can also buy.

• Increase your reputation:

An increase in Market share helps to enhance the reputation of a company. A good reputation will help boost sales and expand the customer base.

• Increase bargaining power:

With an increased market share, one company begins to dominate an industry. With growing dominance over the industry, a company can exercise certain powers, such as greater bargaining power. The company started to have the upper hand and could negotiate in its favor with suppliers and channel members.

• Increase industry dominance:

With this increase, the company can increase its dominance over the industry in which it operates.

In addition, when fluctuations in Market share help show companies’ competitive advantage. This is essential information for investors and the performance of the stock.

4. How to win Market Share?

Every company is looking for ways to increase its market share in the industry. Here are some tips to help your business expand its market share.

• Find a niche and create products that fit that market.

Harness your company’s unique characteristics that set you apart from the competition. For example, are you known for your fantastic design? Or do you have the ability to build powerful user interfaces that are easy to navigate? Identify these that help customers remember your product and keep them returning for more. If you incorporate these into your product, you can create a solid commercial identity that will help you increase your market share.

• Understand your direct competitors.

To increase your market share, you need to understand the market first. Try to find out what other leaders in your market are doing, what your mission is, and what their mission is. If there are gaps in your offerings, try to find unique and creative ways to fill those gaps better than your competitors.

Samsung’s story example: Samsung’s biggest competitor has always been Apple. However, realize that Apple’s product lines are often expensive, and not everyone can afford them. Therefore, Samsung has produced many product lines to be suitable for all types of consumers.

• Innovate or change your product.

There’s a reason Blockbuster isn’t as successful anymore, even though it used to be. Other companies, such as Netflix, have changed their products with societal changes and found new, innovative ways to respond to user needs.

That’s why it’s important to keep innovating and iterating on your products. Otherwise, you will be left behind.

• Interact with your customers.

Since you are trying to increase your Market share and your market is represented by customers, it makes sense to interact with them. Customers know what they want and their needs, so asking them through a survey or social media is a great way to find out what else your company can do for them. Plus, when customers see you’re interested in their feedback, they’ll be more likely to buy and recommend your product.

For example, Apple built a Twitter channel for Apple Support to increase customer engagement. By posting tips about your products every day. This makes customers appreciate Apple products more because they help them discover features they may not have known. In addition, they often constantly answer customer questions.

What’s more, Apple appreciates all kinds of customer feedback, including bad ones. This helped this Twitter channel grow from 0 to nearly 300,000 followers in just two months. This is impressive growth.

In addition to Twitter, many other social networking sites help businesses increase customer interaction. Posting time is also significant when businesses want to achieve the highest amount of interaction. You can refer here: The most interactive post time on Social Media in 2022

• Continue to provide excellent products and make customers happy

This is obvious and important. You cannot increase your market share with unhappy customers. If you focus on delivering great products and features, stellar customer service, and engagement while continuing to innovate, you’re more likely to grow your market share.

CONCLUSION

Through the above article, CleverAds hopes to have answered your question of what market share is. And reveal to you the secrets to help your business increase market share. In addition, examples of how businesses use to gain market share in the industry are also given to help you have a better view of the market. What is market share?

If your business requires Digital Marketing solutions, contact us at cleverads.com.ph for the fastest support.