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Business studies> Marketing> Market size and share

Market size can be given in volume of product sold or value of products. This can therefore be calculated by adding all the different company's sales value or volume together. Market share can be used over time to show if a market is growing or declining.

Market share is the proportion (usually percent) of the total market held by one particular company. The company that has the biggest market share is known as the brand leader. Market share is a good measure of how successful a company is especially if it is measured over time and compared to close competitors.

The brand leader enjoys many benefits other than just more sales. It will get higher distribution level of its product (more shops will stock it) and it is able to offer lower discounts to retail outlets therefore receiving more profit.

Factors which effect the growth of a market are shown below:
Increase in spending power,
Increased population,
Social changes,
Changes in fashion,
Identifying customer needs.