Share Metrics

Question 1

Unit Market share (%)

Answer 1

Unit sales(#) / total market unit sales(#)

Question 2

Revenue Market share (%)

Answer 2

Sales revenue ($)/ total market revenue($)

Question 3

Relative market share

Answer 3

Total market sale/ largest competitors sales

Question 4

Market concentration

Answer 4

It measures the degree to which a relatively small number of firms accounts for a large proportion of the market. (measures the degree of competition)

Question 5

Market concentration(formula)

Answer 5

sum of sales/total market sales

Question 6

Herfindahl Index

Answer 6

to determine if the industry is competitive or nearing monopoly

Question 7

Herfindahl Index Formula

Answer 7

Squaring the market share of each firm in a market and then summing the squares

Question 8

Brand penetration

Answer 8

To measure a brands popularity

Question 9

Brand penetration (formula)

Answer 9

of potential who buy our brand at least once/ total potential buyers

Question 10

Margin($) formula

Answer 10

Price($) - Cost($)

Question 11

Margin(%) formula

Answer 11

Margin($) / Selling Price ($)

Question 12

Total contribution Margin ($) formula

Answer 12

Margin($) * Units sold ($)

Question 13

Sales Price for target margin formula

Answer 13

Sales Price = Cost($) / (1 - Target Margin(%))

Question 14

Cost target for margin formula

Answer 14

Cost Price - Selling Price * (1 - Target Margin(%))