MKT 100 Lecture 3: Market Share Metrics

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Daryl D' Souza

Document Summary

To get from units and dollars to percentage change in a market share, you need to divide the market share of one company by the total market. Total market unit sales (#) total market revenue ($) Do this for every company in the market to get a view of everyone"s market share. The totals don"t always need to = 100. Three (four) firm concentration ratio: once you have the percentages, you add the top 3 or 4 companies together. This is helpful because once you know how much the top 4 companies control, you know how much of the market is left for everyone else. If you want to get into the business, you look at what"s leftover for the competitors and see if its worth getting in o. If there is 20% left for everyone else and there are 100 companies in that, its not a smart idea to get in.