If a company is ready to give up its short-term financial success in order to put its rivals out of business, market share can be utilized as a deadly competitive weapon. Due to the fact that some niche markets can generate very strong profit margins on comparatively low turnover, a small market share is not always correlated with poor earnings.
What is the benchmark used to measure market share?
- Thread starter Shavkat
- Start date
There's a research company here . Nielsen who makes a monthly record of all purchases done by retailer stores. They pay the store a monthly fee depending on the size of the store. It could be the company's basis of determining their market share. Sales figure can also determine the. company share vis a vis its competitors.
Surveys and focus groups can provide qualitative data on customer preferences and perceptions of brands within a particular industry or market with this information we can be able to identify opportunities for growth and to develop marketing strategies to increase market share.
- Thread starter
- #4
That is nice information to have. I am sure it took time for them to accomplish knowing the market share. I was wondering how much will it cost to conduct this activity to make it more accurate.
Some 10 years ago this representative from Nilelsen writes down everything on the form after getting inputs from the store. They actually look at the official receipts of the sfore. The last time I saw the representative she was already using a gadget to record the inputs and she said it goes directly to the system. Research companies spend hefty sum in conducting studies and validating the accuracy of the study. It's like election surveys they can almost make an accurate result.
