Market Share
Market share is the proportion of the overall market for a given category
of product, held by a specific organization
The concept of market share falls into three sections: overall share of the
market as compared with competitors, share of wallet (i.e. share of the
target consumers’ total expenditure) and share of voice (the measure of
a company’s advertising expenditure compared with competitors).
For most marketers, the key measure tends to be overall market share
compared with competitors. The point of measuring market share is to
see how effective competitive strategies are: if share is increasing, the
strategy is working, whereas if share is falling the competitors are using
more successful approaches. Share of wallet means the amount of a consumer’s total disposable
income that is spent on the firm’s products. This is a useful measure as
it shows the degree to which the individual values the company’s
brands, and is likely to be a good surrogate measure for involvement.
Someone who spends a large proportion of their disposable income on a brand is obviously fairly committed to the brand.
Share of voice is an indicator of the degree to which a firm’s marketing
communication will be effective. It measures the relative expenditure on
advertising of each company, providing an overall estimate of the extent
to which each firm is likely to get its message through to potential customers
⠀ Blythe, J. (2009). Key concepts in marketing. Sage (P. 158)
⠀ Blythe, J. (2009). Key concepts in marketing. Sage (P. 158-159).