Market share

What is the market? It is the meeting place for supply and demand. In the developing world, special attention is paid to marketing policy. Marketing directly participates in the life of the market and aims at making an exchange between the seller and the buyer.

The number of companies, various firms and factories is growing every day, they are all trying to improve their sales and take the leading positions 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 certain consumption sector.

Market share is a marketing indicator that can be expressed in both natural and quantitative terms. Increasing the market share is very important for a company or a 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 affect the growth of market share:

- There is such a thing as market segmentation.

The segment of the market is the division of it into certain categories of consumers, for which the acquisition of one type of product is inherent . The companies conduct marketing research of market areas in order to further anticipate the buyers' reaction to the appearance of a new product in storefronts.

Improving sales, bringing new products into the consumer turnover, companies raise the number of their own sales, thereby increasing the market share in this target segment.

- Another 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 a suitable price threshold, organize a service and delivery service.

- The management of the company should stimulate the motivation of employees. The more efficiently the sales managers work, the higher the sales result of the output, respectively, and the market share will grow rapidly.

- Heads of large companies pay great attention to positions in the international market, they invest huge capital in order to stay in the honorable place. Provide an uninterrupted flow of advertising to expand and promote the world market level of your product. The higher the enterprise moves on the world stage, the higher the market share.

Calculation of market share and its increase

In many large companies there are and are developing departments for marketing research. Their task is to determine the market share and increase it. In their work they use targeted and strategic planning based on collected and processed information.

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 in the market. An important criterion in calculating the market share is determining the volume of goods and services that the company provides.

The volume of the market is the number of sales that was made on it for a certain amount of time.

Experts calculate the volume of products, the available exports and imports, the number of possible buyers of goods, analyze the data of state statistics for different economic sectors. After the above-mentioned marketing analyzes, the development of strategic planning for increasing market share begins. Calculating your share and capacity is a painstaking job of marketers and sales managers, since the work of one sector is impossible without the other. Increasing market share occurs when the best innovative product is created in the symbiosis of the buyer and seller.