Market Share, Growth and Size

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Market share, growth and size
Market share the % of the total sales of a product/servce for a particular brand
Market growth The % change in sales over a period of time
Market size the volume of sales of a products
A business should be aware of factors that influence growth, so that it can predict future
1. Economic Growth (if a countries wealth is growing, sales are likely to rise in any
given market)
2. The nature of the product (If the product id seasonal it will only be bought in
certain seasons)
3. Changes in life and fashion (as life style changes, new products become more
popular while others decline
4. Social changes (the way in which people live may influence product sales. People
live more extravagant lifestyles when compared to years ago
Market Share = [Sales of a product ÷ total sales in the market] x 100%
Market share is an excellent measure of a company's success because it compares their sales
with competitors. A company's share can increase if they are out performing


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