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 is aimed at making an exchange between the seller and the buyer.
Number of companies, diverse firms and factorieswith each passing day significantly increases, they all try to improve their sales volumes 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.
The market share is a marketing indicator,which 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 market segment is the division of it into certaincategories of consumers for which the acquisition of one type of product is inherent. Companies conduct market research of market areas in order to further anticipate the reaction of customers to the appearance of a new product in storefronts.
Improving sales, bringing new products into consumer turnover, companies raise the number of their own sales, thereby increasing the market share in this target segment.
- Also one important factor is theCompetition, 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 service and delivery.
- The management of the company should stimulatemotivation of employees. The more effective the sales managers are, the higher the sales result of the output, respectively, and the market share will grow rapidly.
- The heads of large companies pay much attentionpositions on 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 aredepartments on marketing research are developing. 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 existingreal sales to the total volume of goods and services sold or controlled in the market. An important criterion in calculating market share is determining the volume of goods and services that the enterprise 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 export and import, the number of possible buyers of the 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.