What is Market Share?
Market share definition: market share is the percentage of an industry’s sales or revenues that can be attributed to a particular brand during a specific time period.
Market share is calculated by dividing a brand’s revenue generated by the total revenue generated in that industry.
To give a hypothetical example:
- Coca-Cola generates $32 billion in revenue
- The US soft drink market is worth $300 billion
- $32 billion / $300 billion = 0.106
- Coca-Cola has a 10.6% market share
Market share is seen as an important metric because, as on brand’s claim to the market grows, it means they are gaining customers from their competitors.
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Concept related to Market Share
Additional resources about Market Share
- Market Share—a Key to Profitability
- Marketing: Calculating Market Share [Video]
- How to calculate market share