The 1974 March–April issue of Harvard Business Review an article that has a report on Phases I and II of a project which are were sponsored by the Marketing Science Institute(MSI) and also the HBR. The purpose of the project is firstly, to determine whether the profits has an impact of the market strategies. The earlier articles has established a link between strategic planning and profit performance. With additional data, the authors has come up with a very positive correlation. Customer share is a development for outbounds, offensive marketing plans which are designed to retain customers and be able to grow customers share. Customer share goes beyond all the retention of a customer in order to build trust with every each of their customers.
According to Mitch Goozé, market share are often called the share of customer or the share of wallet. It is s simply a measure of how much of the customer's business you have versus on how much you could/would have if you had it all. “All” defines as the business of a shop could do with the capabilities they have, not all the work that could be defined as something impossible to perform.
Market share is a percentage (%) of a total sale volume in a market which are captured by a particular brand, products and a company. By gaining 100% of the market share, usually it is not a good suggestion because of the risk. As an example, like fashion-changes or a product changes will have a huge impact on the organization. Likewise, the cost and efforts to maintain market shares to against competitors are very high. Also, it is possible for a firm to have numbers of market shares, this tends to affect some industries, as an example, supermarkets.
Market share can also be broken down into very specific categories to let a company know whether it has a competitive advantage. As an example, a television can be broken down a television sale segments such as plasmas, LED or a 3D-televisions.
Every industry has its own market objective, and each of its company that exist in an industry has sold to a percentage (%) of the market. Market share are calculated on a national level and on regional levels in order to determine its specific market share. Market share refers to the percentage (%) of total sales in a market which are implied from a product, its brand and an organization.
The significance of a market share is the measures of a consumers preferences for a product over other comparable products. A market share that are higher usually means there will be greater sales. As well as less efforts for selling more and a having a strong barrier for other competitors to enter. By having a higher market share also means that if the market expands, a firm will gain more than the others. A firm will also expands the market for its own growth.
Other industries like financial institutions refuse to have a 100% of a market share. It is because they are avoiding the 100% of risk as well. A company will be profitable if they capture the right amount of market shares but if catastrophe occurs, they will not be over-extended with a 100% of market responsibility.
According to Kimberlee Leonard, there are a lot of strategies that companies may use in order to capture market shares. National marketing as well as national brandings are a significant strategies for brands such as Geiko and Suunto. These brands will be highlighted when watching sports events. The companies run commercial on all of their networks and of course billboards will be everywhere so that people will think about their brands when in they need to purchase sporting watches.
According to Robert D. Buzelle, Bradley T. Gale and Ralph G.M. Sultan. There is no doubt that a market share and return on investment are strongly related. Companies can also improve their market shares by creating strong relationship with their existing customers. This is the most inexpensive ways in order to build market share. Once a company knows on what the market share wants, its focus must be to keep the customers as their most loyal and raving customers. Getting and keeping a customer is one of the top goals of any companies.
If you are guilty for focusing more effort on getting a new customers than selling it to your existing customers. Then, you should rise up to the following challenges. Pledge that, starting today. You will stop thinking about market share. Instead start thinking about customer share.
A company should think of a product or services that customers need as well as buying from other businesses which are related to both product and services that an organization are offering.
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