and NICHE MARKETING MARKET SHARE

 The percentage of an industry or market's total sales that is earned by a particular company over a specified time period.  Market share is calculated by taking the company's sales over the period and dividing it by the total sales of the industry over the same period.

H OW M ARKET SHARE WORKS  Market Share = (Particular Company's Sales Revenue in Time Period X) / (Relevant Market's Total Sales Revenue in Time Period X)  Let's assume Company XYZ sells $50 million a year in widgets. If the total amount of widgets sold from all companies within the market totals $100 million, then Company XYZ has a market share equal to 50%.  Market Share = ($50 million) / ($100 million)

W HY MARKET SHARE MATTERS  As the market for a good or service grows, many analysts view the maintenance or increase in market share as a sign of a company's competitiveness. Increases in market share might come from innovation, broadening demographic appeal, lower prices, or simply advertising.

COMPETITION  The struggle between companies for customers  Why do you want to know about your competition’s market share?  How do you identify your competitors?

N ICHE M ARKETING  Concentrating all marketing efforts on a small but specific and well defined segment of the population.  Examples  ESPN, STAR Sports – target a niche of sports lovers  Aeropostale, MTV – targets youth  Glamour magazine, Lifetime TV– targets women

M ASS M ARKETING  An attempt to appeal to an entire market with one basic marketing strategy utilizing mass distribution and mass media.

M ASS M ARKETING VS. T ARGET M ARKETING WHY?