Posted in Marketing and Strategy Terms, Total Reads: 2777
Definition: Market Standing
The percentage of the total sales of a product in a particular market that a business accounts for is known as the market standing or the market share for that company. For example, ITC's Engage deodorant spray had an 8.1% share in May 2014 across India's urban markets while the market leader Vini Cosmetics’ Fogg held 12.5%, as reported by market tracker Nielsen India.
Usually companies with that have a higher market standing have lower operating costs due to economies of scale in production and they are also considered a better investment option than those with lower market standings.
The market standing of a firm or its product offerings in a market is calculated in terms of number of units sold, revenue earned, product usage, distribution coverage, consumer perceptions, etc. Companies can improve their market standing using different ways like price competition, product innovation, quality improvements, increased or targeted distribution, or by influencing consumer perceptions through advertising and marketing.
In an increasingly competitive scenario, marketers can adopt the following measures for their value proposition in order to maintain or increase their market standing:
a. Crafting offers that focus on their USP (unique selling proposition), with a balance between appeal and exclusivity
b. Supporting their value proposition with evidence (for example, Vaseline Healthy White skin lightening lotion comes with a skin score card to see visible lightening over time)