Unit market share is a measure of the amount of total sales of a given product, brand, or service relative to the total sales of all competing products, brands, or services in the same market. It is typically expressed as a percentage and is calculated by dividing the sales volume of an individual product or service by the total sales of all products and services in the same market.
Unit market share is an essential and essential metric for businesses seeking to grow their brand and is a key metric for market research and analysis. It provides key insights into the success or failure of a product, brand or service, and can be used to inform marketing strategies, competitive analysis and product development.
Unit market share provides an accurate and comprehensive picture of a company's success in the market it operates in and gives the company a competitive edge by allowing the company to monitor competitor activity, assess the strength of its product portfolio, and identify new opportunities for growth.
In order to measure unit market share effectively, it is important to first establish a market, i.e. a group of buyers and/or sellers in which sales/demand is taking place, and to identify the total volume of all products and services being sold in the market. This establishes the basis of the unit market share calculation.
An effective way to determine a company's contribution to the market is to compare the company's share of the total volume of sales over a particular time period with the percentage of the total market sales for a given product or service. This is known as the 'Share of Market'. This can be calculated by taking the total sales volume of a particular product or service and dividing it by the total sales volume of all products and services within the market.
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It is also important to consider other factors in calculating unit market share, such as differentiating between seasonal sales and the impact of pricing strategies, as well as pricing strategies employed by competitors. Additionally, assessing the buying and selling trends in the market can help to identify potential areas of growth and/or decline.
Unit market share is an important metric for companies that want to gain and maintain a competitive edge in the markets they serve. By monitoring competitor sales and activities, assessing their own product and service offerings and identifying areas of opportunity, companies can measure and optimise for unit market share.
In order to monitor and optimise for unit market share, companies should regularly track sales data, analyse the market environment and monitor competitors’ activities. They should also use pricing strategies, such as discounting, price bundling, segmentation, and price-matching, to differentiate their product or service offering. Additionally, companies should evaluate promotional strategies and consider expanding their offerings of products and services to capture new markets.
In order to truly optimise for unit market share, it is important to measure the impact of the company’s strategies, by comparing the performance over a set period of time against the performance of competitors over a similar period. This will help identify where gains and losses are seen, helping to adjust future strategies accordingly.
Finally, it is important to note that market share is a relative measure, dependent upon the total sales within the market. Companies should be aware that successes in one market may not necessarily transfer to another, and vice versa. It is also important to note that unit market share is typically more meaningful when monitoring a whole market, rather than an individual product, brand or service.