Market share is the percentage of sales of a given product or for a particular firm relative to the total market. Market share may be measured in monetary or volume terms. For example, in volume terms, the following equation would represent market share.
In calculating market share, firms must be careful to clearly define the total market by geography, industry, or product. Trends in market share over time are meaningful if the definition remains consistent and there are no large-scale disruptions in the marketplace.
You can learn more about market share in the Idea Incubator blog of 25 Sept 2014 Innovation Metrics: Market Share. (Requires free registration as Innovation member.)
For more new product development and innovation definitions, please see the NPD Glossary.
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