From the course: CMO Foundations: Measuring Marketing Effectiveness (ROI)

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Measuring share of market

Measuring share of market

From the course: CMO Foundations: Measuring Marketing Effectiveness (ROI)

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Measuring share of market

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- Market share may be the most overused and misused marketing metric of all time. Marketing teams cling onto this measure as though their careers dependent on it. But I have to tell you, in my experience, the most savvy marketing teams, either downplay or downright, ignore market share. That's because they've evolved in a way to make it almost irrelevant. Now, that said, market share can be useful in certain short term situations. The key, as with all metrics, is to use it correctly, in context, and for the right purpose. Let's look at how to do that. There are two types of market share. Unit share and revenue share. Here's how you calculate them. Unit share percentage equals the number of your units sold divided by the total market units sold. Revenue share equals your sales revenue divided by total market revenue. Now, I'm using the U.S. dollar in this example, but you could substitute it for any type of currency. You…

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