| Definition |
The percentage of total sales in a market held by a company. |
The process of dividing a market into distinct groups of customers. |
| Purpose |
To measure a company's competitive position. |
To target specific customer needs and improve marketing efforts. |
| Formula |
(Company’s Sales ÷ Total Market Sales) × 100 |
No fixed formula; based on criteria like demographics, behavior, geography, etc. |
| Focus |
How much of the market a company controls. |
How the market is divided into smaller customer groups. |
| Indicator Of |
Performance and competitiveness in the market. |
Marketing strategy and customer targeting. |
| Used By |
Executives, investors, and business analysts. |
Marketing teams and strategists. |
| Time Frame |
Usually calculated quarterly or annually. |
Done during marketing planning or research phases. |
| Improved By |
Increasing sales, brand loyalty, and market penetration. |
Understanding customer behavior and targeting more effectively. |
| Impact |
Directly affects revenue, brand power, and stock performance. |
Enhances customer satisfaction and marketing ROI. |
| Result |
Higher share reflects stronger position in the industry. |
Leads to customized offerings and better customer reach. |
| Data Type |
Quantitative – based on sales numbers. |
Qualitative and quantitative – based on customer characteristics. |
| Example |
If the total smartphone market is ₹100 crore and your brand sells ₹20 crore, market share is 20%. |
Dividing smartphone customers into groups like youth, professionals, or gamers. |
| Main Objective |
To dominate or grow in market size. |
To tailor marketing to different audience needs. |
market share vs market segmentation