Key Indicator of Market

Competitiveness
• Market Share
• Unit Market Share
• Revenue Market Share
Issues
• Market Definition is never a trivial
exercise
– Competitors, products, sales channels,
geographic areas, customers and time periods
Market Share

• What is total market ??

• Whether forecasts are to be attained by growing with the market or by
capturing share from competitors?
• Indicator of how well a firm is doing against its competitors.
• Is it possible that sales are increasing while market share is decreasing?
• It is not easy to define the market

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 Relative Market Share- assess a firm's or
brand's success and its position in the
market

• A firm with a market share of 25% would be a powerful leader in many

markets but a distant “number two” in others.

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BCG Matrix
 Relative Market Share – Ex#2

Interpretation ?
Relative Market Share of Twister?

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 BDI / CDI
Relative market share is “relative to competitors”

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 BDI / CDI

• BDI and CDI are useful for understanding specific customer segments
relative to the market as a whole

• These indexes could also be used for customers, accounts, business, or

other entities.

• These index help in identifying strong and weak segments

• BDI is less and CDI is more ?

• BDI is more and CDI is less ?

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BDI / CDI - Example

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 Penetration

Penetration is a measure of brand or category popularity.

Managers must decide whether to seek sales growth by acquiring existing

category users from their competitors or by expanding the total population
of category

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 Share of Requirements (Wallet)

It is a key measure of loyalty

Can guide a firm’s decision on whether to allocate resources toward efforts

to
• expand a category
• take customers from competitors
• increase share of wallet

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 Share of Requirements (Wallet)

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 Sole Usage

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 Heavy Usage Index

The heavy usage index yields insight into the source of volume and the
nature of a brand’s customer base

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 Heavy Usage Index

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 Awareness, Attitudes, and Usage (AAU)

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 Awareness, Attitudes, and Usage (AAU)

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 Awareness, Attitudes, and Usage (AAU)
Awareness and Knowledge
• Awareness
• Top of Mind
• Ad Awareness
• Brand / Product Knowledge

Attitudes
• Attitudes / Liking / Image
• Perceived Value for Money
• Perceived Quality
• Relative Perceived Quality
• Intentions
• Purchase Intentions

Usage
• Purchase frequency
• Adopted / Rejected

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 Customer Satisfaction and Willingness
to Recommend

Customer Satisfaction provides a leading indicator of consumer

purchase intentions and loyalty

Why to do this survey ?? Can’t sales and market share tell me

about the customer satisfaction ??

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 Customer Satisfaction and Willingness
to Recommend

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 NPS – Net Promoter Score

Net promoter is a measure of the degree to which current customers will

recommend a product, service, or company

Issues with this tool ??

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 Willingness to Search

When a brand enjoys loyalty at this level, its provider can generate powerful
leverage in trade negotiations

Such loyalty will also give providers time to respond to a competitive threat

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