Market Share

Posted by The New Economics Education

Very close to the question about the difference between customers and consumers is the question of how big our market share. The majority of business people have to understand that there is any direct relationship between the relatively high market share and high return on the investigation. It is important to be careful about how a market is defined. For example, SMH, a Swiss company, which sells a variety of brand watches, including Omega and Swatch brands famous. Although Omega and Swatch are equally hours, they were not in the same market. Omega is located in the luxury watch market, and Swatch are located in the fashionable accessory market. Appropriate market definition is crucial for the calculation of market share and market growth, the target customers' specifications, re-confirmation of the actual competitors, and most importantly, the formulation of marketing strategy that presents a distinct advantage.

The general rule is that the market definition is an aggregation of all market products that can satisfy the same needs. For example, internal catering services company is considered as one option when it comes time for lunch at the office. It also needs can be satisfied in a public restaurant, fast food restaurants and snack outlets. Emphasis on the definition, thus, clearly the word need.

It is important to be able to achieve a balance between understanding the broad market with a market definition that can be managed. A definition that is too superficial impact on the inhibition of the company and the opportunities that may open a new segment for your business. The other hand, the definition is too broad to make a marketing plan does not mean at all. For example, the TV station said to be in the entertainment market, which turned out to also contain other entertainment organizations, such as theaters, cinemas, and amusement parks, on the other side. It's a pretty broad definition adalh. Therefore, it would be more manageable if the TV station, while trying mensegmentasi their markets, to define their market as the entertainment market and household information. This definition is further abstracted to impart information and entertainment in the market for pre-school households, children, teens, families, or adults.
To help calculate market share, the following definitions may help:
1. Product Class 
Cigarettes, computers, fuel, heavy construction equipment.
2. Product Subclass 
Filter, personal computer, premium, bulldozer. 
3. Brand Products 
Marlboro, Compaq, Mobil, Caterpillar.

Coke, as a brand, for the purposes of measuring market share, is only interested in the aggregate of all other brands that satisfy consumers' needs are the same group. However, Coca-Cola company also needs to be alert to trendpenjualan all kinds of drinks.
One of the most common mistakes that they do not understand what the actual market share is to assume that their company only has a market share of product class or subclass of small saja.jika a successful enterprise in sales, the company most likely has its share of the greater in one segment of the market wide labih above. For example, Psion, a British company with annual sales of $ 150 million, a share that is not nothing in the computer market. However, for computers with a weight of less than 1 kilogram, in 1996, Psion has a market share that is very surprising, that 34 percent of the total world market, making it the number one company in the world for that segment.
Although it is tempting to believe that untul given a new definition will add "clutter" the definition of existing markets and there is a danger if the lie to ourselves, not to lose sight of the purpose of market segmentation, to provide a competitive advantage for companies to deliver better value for customers. New York symphony orchestra can define the market being served sebgai viewers if aggregation of all the classic New York orchestra rather than solely as entertainment. The key is that a definition of the market allows it to exceed its competitors and still continues to grow in their behavior. Definition set should continue to be reviewed and corrected.
In summary. Appropriate market definition is important for several tujuab as follows:
  1. Measurement share. 
  2. Measurement of growth.
  3. Customer specifications. 
  4. Formulation of objectives and marketing strategies.
  5. Consideration of the relevant competitors.
The foregoing brings us to the observation of the market that are more useful and interesting.

{ 3 comments... read them below or add one }

N Rana said...


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Nina Athena said...

Thank you for sharing such valuable and helpful information, tips and knowledge. This gives me more insights on this. I would love to see more updates from you.

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