- Kevin Smith
In this week’s Ad Math video, we’re going to walk through how to calculate Market Share.
Why Market Share Matters
The main goal of marketing is to attract and retain customers by promoting why your product or service is better than your competitors. So, to measure if you’re successful in that goal, you need to assess your performance within your industry or category. That’s where market share comes in.
Your Market Share should factor into a lot of marketing planning, and it should be analyzed consistently throughout the year to better understand the various sources of performance.
How To Determine Your Market Share
Determining your market share is relatively easy assuming you know how many sales for your type of product or service has occurred within the industry in a given time. Let’s take a look at how to figure it out:
What Your Market Share May Tell You
A rising market share is typically a good sign however, you need to note whether the increase is because you may have dropped your price or if the category is changing and your competitors are leaving the market for some reason. In either case, knowing your market share helps you gauge your situation.
If this video helped, please consider subscribing to our YouTube channel where we’ll release a new Ad Math video each Wednesday. And if you have a marketing metric that you’d like us to break down in an upcoming video, let us know by adding it in the comments.