{"id":62828,"date":"2021-04-08T14:57:06","date_gmt":"2021-04-08T12:57:06","guid":{"rendered":"https:\/\/visionarymarketing.com\/?post_type=glossary&#038;p=62828"},"modified":"2023-05-26T07:58:10","modified_gmt":"2023-05-26T05:58:10","slug":"market-share-definition","status":"publish","type":"glossary","link":"https:\/\/visionarymarketing.com\/en\/glossary\/market-share-definition\/","title":{"rendered":"Market Share definition"},"content":{"rendered":"<p><i>In\u00a0order to understand the definition of market share in marketing and in <\/i>B2B marketing<i> in particular, it is necessary to remember that supply results from the intervention of two main factors: the producers who produce the good or service offered and the distributors who will market the product. <\/i><\/p>\n<h1>Key Concepts in Supply Analysis: Market Share and Availability\/Distribution<\/h1>\n<figure id=\"attachment_55375\" aria-describedby=\"caption-attachment-55375\" style=\"width: 750px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"wp-image-55375 size-full\" src=\"https:\/\/visionarymarketing.com\/wp-content\/uploads\/2020\/05\/jumpstory-download20200820-133851-scaled-e1606481483453.jpg\" alt=\"Key concepts in supply analysis: market share (MSP) and availability\/distribution\" width=\"750\" height=\"498\" \/><figcaption id=\"caption-attachment-55375\" class=\"wp-caption-text\">In order to understand the definition of market share in marketing and in B2B marketing in particular, it is necessary to remember that supply results from the intervention of producers and distributors.<\/figcaption><\/figure>\n<p><b><span data-contrast=\"auto\">Market share\u00a0<\/span><\/b><span data-contrast=\"auto\">can be defined as a percentage accounted for by<\/span><span data-contrast=\"auto\">\u00a0a given producer or brand in <\/span><span data-contrast=\"auto\">its own<\/span><span data-contrast=\"auto\"> market.<\/span><\/p>\n<blockquote class=\"quote-light\"><p>Market share = Current market of producer or brand\/Current market of product all brands<\/p><\/blockquote>\n<p><!--more--><\/p>\n<h2>Two Modes of Calculating Market Share<\/h2>\n<p><span data-contrast=\"auto\">There are two ways to calculate it:<\/span><\/p>\n<ul>\n<li><b><span data-contrast=\"auto\">The market share by volume<\/span><\/b><span data-contrast=\"auto\">: The <\/span><span data-contrast=\"auto\">ratio between the sales volume of the producer. Brand over the sales volume of all producers or brands combined.<\/span><\/li>\n<li><b><span data-contrast=\"auto\">The market share by value<\/span><\/b><span data-contrast=\"auto\">: The <\/span><span data-contrast=\"auto\">ratio between the value of sales or turnover of the producer. Brand over the value of sales or turnover of all producers and brands combined. <strong>A<\/strong><\/span><strong>vailability <\/strong><b><span data-contrast=\"auto\">(<\/span><\/b><b><span data-contrast=\"auto\">or distribution<\/span><\/b><b><span data-contrast=\"auto\">)<\/span><\/b>\u00a0is\u00a0<span data-contrast=\"auto\">an\u00a0<\/span><span data-contrast=\"auto\">indicator whereby one assesses how a product or brand is present in the outlets.<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">There is a distinction between:<\/span><\/p>\n<ul>\n<li><b><span data-contrast=\"auto\">Digital availability<\/span><\/b><span data-contrast=\"auto\">: T<\/span><span data-contrast=\"auto\">he ratio of the number of outlets of a given type selling a brand compared to other similar outlets.<\/span><\/li>\n<li><b><span data-contrast=\"auto\">Value availability<\/span><\/b><span data-contrast=\"auto\">:<\/span>\u00a0T<span data-contrast=\"auto\">he ratio of the turnover achieved in the product category by outlets of a given type selling a brand compared to the turnover generated within the product category by all outlets of the same type.<\/span><\/li>\n<li><\/li>\n<li>A brand seems to have efficient demand when DA &gt; VA, expensive demand when DV &lt; DN and ideal demand when DV = DN.<\/li>\n<\/ul>\n<h3><span class=\"TextRun MacChromeBold SCXW182150356 BCX0\" lang=\"EN-FR\" xml:lang=\"EN-FR\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW182150356 BCX0\">The Limits of Theoretical Approaches<\/span><\/span><span class=\"EOP SCXW182150356 BCX0\" data-ccp-props=\"{&quot;134233279&quot;:true}\">\u00a0Market Share (PDM)<\/span><\/h3>\n<p><span class=\"TextRun SCXW96290503 BCX0\" lang=\"EN-FR\" xml:lang=\"EN-FR\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW96290503 BCX0\">The limit of digital distribution <\/span><\/span><span class=\"TextRun SCXW96290503 BCX0\" lang=\"EN-FR\" xml:lang=\"EN-FR\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW96290503 BCX0\">(DN) <\/span><\/span><span class=\"TextRun SCXW96290503 BCX0\" lang=\"EN-FR\" xml:lang=\"EN-FR\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW96290503 BCX0\">is that it does not take into account <\/span><\/span><span class=\"TextRun SCXW96290503 BCX0\" lang=\"EN-FR\" xml:lang=\"EN-FR\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW96290503 BCX0\">store size and turnover in <\/span><\/span><span class=\"TextRun SCXW96290503 BCX0\" lang=\"EN-FR\" xml:lang=\"EN-FR\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW96290503 BCX0\">which<\/span><\/span><span class=\"TextRun SCXW96290503 BCX0\" lang=\"EN-FR\" xml:lang=\"EN-FR\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW96290503 BCX0\">\u00a0the product is distributed.<\/span><\/span><\/p>\n<h3><span class=\"EOP SCXW182150356 BCX0\" data-ccp-props=\"{&quot;134233279&quot;:true}\"><span class=\"TextRun MacChromeBold SCXW254301674 BCX0\" lang=\"EN-FR\" xml:lang=\"EN-FR\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW254301674 BCX0\">Trends and Innovations<\/span><\/span><span class=\"EOP SCXW254301674 BCX0\" data-ccp-props=\"{&quot;134233279&quot;:true}\"> in PDM<\/span><\/span><\/h3>\n<p><span data-contrast=\"auto\">Volume market share can be expressed in terms of three different indicators<\/span><span data-contrast=\"auto\"> according to the following formula <\/span><span data-contrast=\"auto\">:<\/span><\/p>\n<blockquote class=\"quote-light\"><p>Volume market share = occupancy ratio x exclusivity rate x intensity rate<\/p><\/blockquote>\n<h3>Tools and Methods<\/h3>\n<p><span data-contrast=\"auto\">In addition to calculating the standard market share, one\u00a0<\/span><span data-contrast=\"auto\">often calculates <\/span><span data-contrast=\"auto\">the\u00a0<\/span><b><span data-contrast=\"auto\">relative market share\u00a0<\/span><\/b><span data-contrast=\"auto\">which is the ratio of the producers or brand\u2019s sales to the sales of the main competing product.<\/span><\/p>\n<p><span data-contrast=\"auto\">The analysis can be deepened by decomposing the <strong>market share<\/strong><\/span><b><span data-contrast=\"auto\">\u00a0into volume<\/span><\/b><span data-contrast=\"auto\"> according to the following formula:<\/span><\/p>\n<blockquote class=\"quote-light\"><p><b><span data-contrast=\"auto\">Volume market share = occupancy rate x exclusivity rate x intensity rate<\/span><\/b><\/p><\/blockquote>\n<h3>The Market Share Links<\/h3>\n<ul>\n<li><a href=\"https:\/\/corporatefinanceinstitute.com\/resources\/knowledge\/economics\/market-share\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-contrast=\"none\">Market Share<\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.wallstreetmojo.com\/market-share-formula\/\"><span data-contrast=\"none\">How to calculate market share<\/span><\/a><\/li>\n<li><\/li>\n<li><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Market share\u00a0 can be defined as a percentage accounted for by\u00a0a given producer or brand in its own market. Market share = Current market of producer or brand \/ Current market of product all brands<\/p>\n","protected":false},"author":106,"featured_media":62829,"parent":0,"template":"","glossary-cat":[],"class_list":["post-62828","glossary","type-glossary","status-publish","has-post-thumbnail","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Market share by Visionary Marketing - Marketing and Innovation<\/title>\n<meta name=\"description\" content=\"In\u00a0order to understand the definition of market share in marketing, supply results from the intervention of producers and distributors\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/visionarymarketing.com\/en\/glossary\/market-share-definition\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Market share by Visionary Marketing - 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