Market Share
The percentage of total industry sales earned by a particular business.
Market share requires data on the entire market, not just on the business, which is why large firms track it and very small ones usually cannot. A business that cannot measure it honestly is expected to track something it can.
Often Confused With
- Customer Retention Data
- Retention data needs only the business's own records; market share needs data on the entire market's sales.
- Total Sales
- Market share is a percentage of the market; total sales is an absolute dollar figure that can rise even as share falls.
Taught In
See Also
4.2.B.2