Increase your market share with these 5 strategies
Posted: Sat Dec 28, 2024 6:53 am
Market share refers to the percentage of a business's sales relative to the total sales of its competitors in a specific market. This can be determined either in the form of revenue or sales volume.
Either method is valid for developing marketing strategies, which is what we will tell you more about below.
How is market share calculated?
There are two ways to calculate market share. Here we tell you which ones they are:
By sales volume
This calculation is based on japan telegram mobile phone number list the number of units of a product sold compared to the total units sold in the market. For example, the amount of avocados you sell compared to how much is sold in all of Mexico.
Let's imagine that you are a chilli producer who sells 25 tons per year, while the whole country sells 300 tons. To estimate your market share percentage, divide 25/300 and multiply by 100, which gives 8.3%, which would be your market share.
By income (monetary)
The second way is to calculate the share based on the revenue generated by the company's sales. The company's turnover is compared to the total sales in the market.
For example, you have a water bottling company that sells 20 million pesos a year while the market registers revenues of 5,000 million pesos. Here the formula is the same, divide 20/5000 and multiply it by 100, that will give 0.4%, that is your market share.
To improve your market share you must focus on strategies that allow you to increase customers and retain the ones you have . Some of the main ones are:
Innovation in products and services
One of the most common mistakes in developing new products is to focus on the product and not on the need it solves. That is, instead of creating a product and going out to sell it, first research the market, see what it needs and create a product or service to solve that pain point.
Innovation is also key. Just think what happened with Kodak or Blockbuster, companies that, by not innovating their business model, lost market share and ended up going bankrupt.
Competitive analysis
After identifying new potential customers , it is important to investigate their needs, demands, culture, tastes, what they are looking for and what hurts them. All this information will allow you to make better decisions regarding innovation and business strategy.
But analyzing your market is not the only thing you should do in these marketing strategies. You also need to analyze your competition to find out what they are doing, how they are selling it, and how your business can do it better.
Marketing and branding
Seek expert advice to design marketing plans with smart objectives based on real data on market behavior in general and consumers in particular.
Remember that today, marketing is comprehensive and includes both brand positioning and sales. With an increasingly informed public, it is becoming more demanding, which requires the creation of more precise, but more humane marketing strategies.
Develop an incentive plan for your sales team
An unmotivated sales team will ignore your goals and quotas. If you want to increase market share, you need to get your sales team more involved and, therefore, sell more.
These types of plans include the delivery of both financial and emotional incentives. In the financial ones, we have bonuses, commissions and prizes both in kind and in money. In the emotional ones, benefits such as leaving early, giving additional days off, vacations or participating in raffles can be included.
Customer relations
Finally, it is important to take into account that customers are the central axis of all marketing strategies today. Leaving a customer out will make you irrelevant, which will be reflected in your sales.
Listen to your customer, take their feedback into account and apply it. This will help them feel valued and create a bond with your business. If you have ever read about emotional marketing , you will see that this is one of the key tips for customer loyalty .
Keep in mind that, given the dynamics of the current market, you must focus on streamlining processes and retaining existing customers. If you keep them happy, they will buy from you again and become ambassadors for your brand.
Either method is valid for developing marketing strategies, which is what we will tell you more about below.
How is market share calculated?
There are two ways to calculate market share. Here we tell you which ones they are:
By sales volume
This calculation is based on japan telegram mobile phone number list the number of units of a product sold compared to the total units sold in the market. For example, the amount of avocados you sell compared to how much is sold in all of Mexico.
Let's imagine that you are a chilli producer who sells 25 tons per year, while the whole country sells 300 tons. To estimate your market share percentage, divide 25/300 and multiply by 100, which gives 8.3%, which would be your market share.
By income (monetary)
The second way is to calculate the share based on the revenue generated by the company's sales. The company's turnover is compared to the total sales in the market.
For example, you have a water bottling company that sells 20 million pesos a year while the market registers revenues of 5,000 million pesos. Here the formula is the same, divide 20/5000 and multiply it by 100, that will give 0.4%, that is your market share.
To improve your market share you must focus on strategies that allow you to increase customers and retain the ones you have . Some of the main ones are:
Innovation in products and services
One of the most common mistakes in developing new products is to focus on the product and not on the need it solves. That is, instead of creating a product and going out to sell it, first research the market, see what it needs and create a product or service to solve that pain point.
Innovation is also key. Just think what happened with Kodak or Blockbuster, companies that, by not innovating their business model, lost market share and ended up going bankrupt.
Competitive analysis
After identifying new potential customers , it is important to investigate their needs, demands, culture, tastes, what they are looking for and what hurts them. All this information will allow you to make better decisions regarding innovation and business strategy.
But analyzing your market is not the only thing you should do in these marketing strategies. You also need to analyze your competition to find out what they are doing, how they are selling it, and how your business can do it better.
Marketing and branding
Seek expert advice to design marketing plans with smart objectives based on real data on market behavior in general and consumers in particular.
Remember that today, marketing is comprehensive and includes both brand positioning and sales. With an increasingly informed public, it is becoming more demanding, which requires the creation of more precise, but more humane marketing strategies.
Develop an incentive plan for your sales team
An unmotivated sales team will ignore your goals and quotas. If you want to increase market share, you need to get your sales team more involved and, therefore, sell more.
These types of plans include the delivery of both financial and emotional incentives. In the financial ones, we have bonuses, commissions and prizes both in kind and in money. In the emotional ones, benefits such as leaving early, giving additional days off, vacations or participating in raffles can be included.
Customer relations
Finally, it is important to take into account that customers are the central axis of all marketing strategies today. Leaving a customer out will make you irrelevant, which will be reflected in your sales.
Listen to your customer, take their feedback into account and apply it. This will help them feel valued and create a bond with your business. If you have ever read about emotional marketing , you will see that this is one of the key tips for customer loyalty .
Keep in mind that, given the dynamics of the current market, you must focus on streamlining processes and retaining existing customers. If you keep them happy, they will buy from you again and become ambassadors for your brand.