Attaining a competitive advantage is critical for a business’ survival in today’s market. A competitive advantage enables the differentiation of a brand from its competitors. It aids marketers in producing interest and value with customers, increases brand loyalty and sales.
Market share is an indicator of the competitiveness of the market. It is an essential metric that businesses use to determine the brand’s position, performance, and impact in its target market compared to its competition. Market share entails the degree to which customers perceive the brand and its value proposition.
Market share considers actuals sales and the success of the business’ marketing strategies to generate revenue and improve profitability. It measures the product or brand sales compared to the overall market size. Moreover, marketers can utilize market penetration to identify the total market population, potential customers who have decided against purchasing a product or brand, low interests in a product category, and potentially unmet demands for products.
Market Share Tips:
Cultivate a Unique Brand Position:
Marketers must help businesses develop and promote unique and consistent brand positioning strategies that make the brand or products stand out and increase market share. According to the 2020 Statista article about Coca-Cola Company’s Market Share in the U.S., Coca-Cola’s market share rose to 43.7%, and it is “one of the most valuable and recognizable brands worldwide.”
Focus on a Small Target Market or Niche and Specific Market Need:
Marketers narrowing a focus on a niche or small target market, one product or idea can help businesses increase their market share by directing efforts on satisfying specific customer needs. It enables the organization to establish a distinctive brand position and image, retaining existing and attracting new customers simpler.
Offering specialized products or services enables businesses to have less competition in pricing and an increasing market share, revenue, and brand loyalty.
Niche marketing allows businesses to identify existing unique segments and those that can be developed further and become profitable.
Maintain Relevancy Through Innovation:
Innovation entails using technology, new products, customer support, and customized solutions to address customers’ needs. It enables businesses to increase their market share by differentiating their brand, staying ahead of their competitors in their industry, and offering customers products or services that competitors have not provided.
Market share plays a vital role in aiding businesses to gauge their position and performance compared to their industry competitors. Market share is valuable because it reduces enables businesses to identify opportunities and their potential in the market. It also allows organizations to discover the market and consumer behavior trends that will help them make efficient decisions and develop critical strategies to increase profitability and growth. Market share provides businesses with insights to put themselves ahead of competitors and demonstrate their successes and effectiveness in providing customers with products or solutions that meet their wants and needs.