How to Increase Market Share
It may happen that some companies sell their products at cheap prices in order to win the market competition in front of other companies and increase their market share, then return and raise the prices of the products again. This is due to the companies’ fear of attracting new customers, which helps them increase their market share, which leads to raising the company’s value in the market. It attracts investors and even raises stock prices in the financial market despite the cheap selling of products at times. What is market share and how do companies increase their share?
Definition of market share
Market share is the indicator by which the company's ability to compete in the market is measured. When the company's market share increases, the profit return increases with the company's size.
Market share refers to the percentage that the company earns in the market out of total sales, and market share is calculated by knowing the total sales of a product in the market in a specific period of time and knowing the total sales of a particular company during the same period.
Benefits of market share and its impact
Investors and company owners are interested in the movement of market share and knowing whether it is increasing or decreasing because increasing or decreasing market share indicates the competitiveness of the company, which also contributes to achieving a broader scope for the company and increasing the percentage of profits. Marketing share also contributes to a large number of benefits, from which comes its importance. Market share such as:
- Market share helps companies develop production service and product cost compared to other companies in the market.
- Market share contributes to increasing sales by enhancing the brand value, which prompts consumers to buy the product.
- The increase in market share also expands the company's customer base.
- Controlling the market for the product the company specializes in manufacturing.
How to increase market share
Major companies depend on a group of basic factors that will increase market share and capture the market. Indeed, there are some companies that are unique in the market and outperform their competitors until they no longer have a competitor. Below we mention a group of factors that help in increasing market share.
- Innovation
Innovation is the most important means that contributes significantly to increasing market share. Innovation takes several forms. Innovation can be in the product itself or the method of production and manufacture of the product. It can also be innovation in the technology with which the product is put on the market to make a company unique to the rest. Competitors, so that innovation is the easiest gateway to outperforming competitors and dominating the market.
- Lower the price
Reducing the price helps attract a larger number of consumers, which contributes to expanding the customer base and increasing sales, and many companies use this strategy to increase market share.
- Strengthening the company's relationship with customers
Strengthening the company's relationship with customers contributes to the company maintaining... Customer base In light of the high competition in the market, maintaining customer relationships leads, in turn, to the possibility of increasing the number of customers through word-of-mouth marketing, which results in increased market share.
- Marketing and advertising
Marketing and advertising the company is the shortest way to increase market share, and despite the high cost of marketing, it is effective in tipping the balance in the company's favor and winning over the competition.
- Raising the level of quality
Customers prefer products with high quality and reasonable price, and by offering products with high quality standards it greatly helps in increasing the market share.
- Having a distinguished workforce
A company that has a cadre of highly skilled and talented employees and workers will have a higher market share than others. It must be said that getting a talented employee is much better than getting an employee who needs training. It also benefits the company in reducing spending on training and allocating those expenses to raising the efficiency of products.
Therefore, if you are wondering how to increase market share, you must use some different strategies that will enable you to increase your share of the market and even take over the entire market, whether through innovation and introducing new technologies or through gaining customer loyalty or other points that have been achieved. It was mentioned previously, through which you will be able to reach the market percentage you desire.
Read also - What is a commercial power of attorney?
