The purpose for a marketing manager to calculate and know their organizations or products market share is that market share is an indicator on how well or poorly a company or product is doing against competitor companies or products of the same category in the same market. It basically allows the marketing manager to determine both the market growth or decline of their company or products in a specific market.
Understanding market share also allows the marketing professional to exam trends with customers as they make selections with the competition. Market share can also be used as an early indicator of whether a product or service is doing well within a market or if there are signs of trouble with the product or service.
Market Share – Formulas
Below are two marketing math formulas for calculating market share; one formula calculates the unit market share which are product units sold by a company in a specific market as compared to similar competitor products in the same market.
The other market share formula is revenue market share. This marketing math formula calculates the price at which the product or service is sold.
Unit Market Share
Use the form below to calculate market share for product units sold in a specific market against similar products in the same market.
Revenue Market Share
Use the form below to calculate revenue market share for the price of products or services against similar products or services in the same market.