Market Share
(noun)
Percentage of some market held by a company.
(noun)
The percentage amount of a market captured by a single firm
Examples of Market Share in the following topics:
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Market Share
- If company A sold 600 of those baubles, they have 60% of the market share.
- Market share is a key indicator of market competitiveness—that is, how well a firm is doing in terms of its competition.
- Firms with market shares below a certain level may not be viable.
- Increasing market share is one of the most important objectives of business.
- However, increasing market share may be dangerous for makers of fungible hazardous products, particularly products sold into the United States market, where they may be subject to market share liability.
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Evaluating results
- No marketing program is planned and implemented perfectly.
- Marketing managers will tell you that they experience many surprises during the course of their activities.
- In an effort to ensure that performance goes according to plans, marketing managers establish controls that allow marketers to evaluate results and identify needs for modifications in marketing strategies and programs.
- Marketing control involves a number of decisions.
- A second set of decisions concerns the establishment of standards for performance; e.g. market share, profitability, or sales.
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Consumer marketing models
- The formal use of marketing concepts is a fairly recent activity in developing economies.
- In the meantime, traditional producers of traditional CDs lost market share to Apple, which had a much better understanding of how to satisfy consumers.
- Disadvantages of the product model are that as soon as a company could offer a product more oriented to satisfy customers´ needs and desires the companies oriented to products will lose the most if not all of its market share.
- In summary, market orientation is essentially a customer orientation.
- Understanding customer needs lies at the core of the marketing concept.
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The competitive environment
- Entering an international market is similar to doing so in a domestic market, in that a firm seeks to gain a differential advantage by investing resources in that market.
- In Japan, a company typically starts with a target cost based on the price that it estimates the market is most willing to accept.
- This approach also encourages managers to worry less about product costs and more about the role it should play in gaining market share.
- Briefly, at Japanese companies like NEC, Nissan, Sharp, and Toyota, a team charged with bringing a product idea to market estimates the price at which the product is most likely to appeal to the market.
- US companies tend not to assess what the market will be willing to pay.
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Industrial Purchasing Behavior
- To "corner the market" is to have the greatest market share in a particular industry without having a monopoly.
- 2008: Porsche and shares in Volkswagen During the financial crisis of 2007-2010 Porsche cornered the market in shares of Volkswagen, which briefly saw Volkswagen become the world's most valuable company. [8] Porsche claimed that its actions were intended to gain control of Volkswagen rather than to manipulate the market: in this case, while cornering the market in Volkswagen shares, Porsche contracted with naked shorts—enabling it to perform a short squeeze on them. [9] It was ultimately unsuccessful, leading to the resignation of Porsche's chief executive and financial director and to the merger of Porsche into Volkswagen.
- Another definition: "To have the greatest market share in a particular industry without having a monopoly.
- If the rest of the market senses weakness, it may resist any attempt to artificially drive the market any further by actively taking opposing positions.
- 1990s: Hamanaka and the copper marketRogue trader Yasuo Hamanaka, Sumitomo Corporation's chief copper trader, attempted to corner the international copper market over a ten year period leading up to 1996. [6] At one point during this "Sumitomo copper affair," Hamanaka is believed to have controlled approximately 5% of the world copper market. [6] As his scheme collapsed, Sumitomo was left with large positions in the copper market, ultimately losing US$2.6 billion. [7] In 1997 Hamanaka pleaded guilty to criminal charges stemming from his trading activity and was sentenced to an eight year prison sentence.2008: Porsche and shares in VolkswagenDuring the financial crisis of 2007-2010 Porsche cornered the market in shares of Volkswagen, which briefly saw Volkswagen become the world's most valuable company. [8] Porsche claimed that its actions were intended to gain control of Volkswagen rather than to manipulate the market: in this case, while cornering the market in Volkswagen shares, Porsche contracted with naked shorts—enabling it to perform a short squeeze on them. [9] It was ultimately unsuccessful, leading to the resignation of Porsche's chief executive and financial director and to the merger of Porsche into Volkswagen.2010: Armajaro and the European cocoa marketOn July 17, 2010, Armajaro purchased 240,100 tonnes of cocoa.
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Performance per Share
- Price to Earnings (P/E) ratio relates market price to earnings per share.
- P/E Ratio = Market Price Per Share / Annual Earnings Per Share .
- The dividend yield or the dividend-price ratio of a share is the company's total annual dividend payments divided by its market capitalization—or the dividend per share, divided by the price per share.
- Market To Book ratio is used to compare a company's current market price to its book value.
- In the first method, the company's market capitalization can be divided by the company's total book value from its balance sheet (Market Capitalization / Total Book Value).
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Pricing
- A common strategy involves a marketer setting a lower price for their products in foreign markets.
- This strategy is consistent with the low income levels of many foreign countries, and the lower price helps to build market share.
- Pricing strategies are also strongly influenced by the nature and intensity of the competition in the various markets.
- Finally, there are several inherent problems associated with pricing in international markets.
- Dumping (when a firm sells a product in a foreign country below its domestic price or below its actual costs) is often done to build a company's share of the market by pricing at a competitive level.
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Marketing Environment Research
- Some marketing researchers have concluded that brands are one of the most valuable assets a company has,[5] as brand equity is one of the factors which can increase the financial value of a brand to the brand owner, although not the only one. [6] Elements that can be included in the valuation of brand equity include (but not limited to): changing market share, profit margins, consumer recognition of logos and other visual elements, brand language associations made by consumers, consumers' perceptions of quality and other relevant brand values.
- Consumers' knowledge about a brand also governs how manufacturers and advertisers market the brand. [7][8] Brand equity is created through strategic investments in communication channels and market education and appreciates through economic growth in profit margins, market share, prestige value, and critical associations[disambiguation needed].
- The term is commonly interchanged with market research; however, expert practitioners may wish to draw a distinction, in that market research is concerned specifically with markets, while marketing research is concerned specifically about marketing processes.
- They make decisions about potential opportunities, target market selection, market segmentation, planning and implementing marketing programs, marketing performance, and control.
- Marketing research helps the marketing manager link the marketing variables with the environment and the consumers.
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Addressing Market Needs
- Examples of markets include: Physical retail markets, such as local farmers' markets, shopping centers and shopping malls Non-physical internet markets Ad hoc auction markets Markets for intermediate goods used in production of other goods and servicesLabor markets and international currency and commodity markets Stock markets, for the exchange of shares in corporations Artificial markets created by regulation to exchange rights for derivatives that have been designed to ameliorate externalities, such as pollution permits.
- Illegal markets such as the market for illicit drugs, arms, or pirated products
- Market research provides important information that identifies and analyzes the market's need, size, and competition; thus making it possible to determine how to market a product.
- Market segmentation is the division of the market or population into subgroups with similar motivations.
- Market trends are the upward or downward movement of a market during a period of time.
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Open Market Operations
- Open market operations (OMO) refer to a central bank's selling or buying of government bonds on the open market.
- An open market operation (also known as OMO) is an activity by a central bank (in the U.S. it is the Fed) to buy or sell government bonds on the open market.
- The market for U.S.
- Treasury securities market is the broadest and most active of U.S. financial markets.
- A sizable share of the Federal Reserve's holdings is held in Treasury securities with remaining maturities of one year or less.