Entrep Module 6 Market Share and Value

MARKET
SHARE AND
VALUE
Entrepreneurship
Module 6 Quarter 1
Hay, I’m so
hungry I
wanna eat
some pies
A market is a pie and the
bigger the slice of the pie,
more profit
potential
OBJECTIVES
At the end of the lesson you are expected to:
• Explain the concept of market share.

(TLE_ICTAN11/12PC-Ia-1)
• Compute and compare the market share of specific
businesses.
• Appreciate the importance of market analysis in a
business.
01
Pre-test
1. What is a term which refers to the amount by which revenues
from sales exceeds costs in a business?
a. Market Segment c. Profit Margin
b. Market Share d. SWOT Analysis
2. What term is given to a compilation of your company's strengths,
weaknesses, opportunities and threats?
3. What term means a group of people who share one or more
common characteristics, joined together for marketing purposes?
4. What word refers to a person, company, or country that
makes, grows, or supplies goods or commodities for
sale?
a. Market Size c. Proportion
b. Producers d. Product Range
5. Which of the vocabulary words below refers to the
number of individuals in a certain market segment who
are potential buyers?
Pre-test
Answer Key
1. What is a term which refers to the amount by which revenues
from sales exceeds costs in a business?
2. What term is given to a compilation of your company's strengths,
weaknesses, opportunities and threats?
3. What term means a group of people who share one or more
4. What word refers to a person, company, or country that
makes, grows, or supplies goods or commodities for
sale?
5. Which of the vocabulary words below refers to the
number of individuals in a certain market segment who
are potential buyers?
Definition of Terms
Market Size SWOT Analysis
The number of individuals in a certain A compilation of your company's strengths,
market segment who are potential weaknesses, opportunities and threats. The
buyers. primary objective of a SWOT analysis is to help
organizations develop a full awareness of all the
factors involved in making a business decision.
Competition Portion
A situation in which someone is trying A part, share or number, considered in
to win something or be more comparative relation to a whole.
successful than someone else.
Definition of Terms
Market Segment Profit Margin
It is a group of people who share one The amount by which revenues from sales
or more common characteristics, exceeds costs in a business.
joined together for marketing
purposes
Producers Product Range

A person, company, or country that Type of products that a company,
makes, grows, or supplies goods or business or store sells.
commodities for sale.
A marketing strategy is a unique
formula for each enterprise
which involves carefully selecting
markets, market segments and
market niches. Consequently, it
involves deciding which markets
not to deal with.
Survey of
Market Place and
Value
Survey
A different set of questions is needed when assessing
the size of the market for a particular type of product and
the value of the market (the amount of money spend on
that product each month or year).
At the same time, it is possible to gather information
about the types of people who buy a particular food and
where they buy it.
Survey
The information gathered from potential consumers can be analyze
by the entrepreneur to get a good idea of the quality characteristics of the
product that consumers prefer the total demand for the product and the
total value of the market.
This involves making a number of assumptions and it is important to
consider the following:
1. Are the people interviewed really representative of all potential
consumers?
2. Was the number of people interviewed enough?
3. Were people giving accurate information?
What is Market Also known as
Serviceable
Size? Addressable Market
It is the maximum amount of revenue you can possibly

generate by selling your products or services to the
potential customers who would realistically benefit from
buying your solutions.
This metric helps you accurately measure your business’
potential for growth.
How to calculate for the Market
Size?
1. Count up all the potential customers that would

be a good fit for your business.
2. Multiply that number by the average annual
revenue of these types of customers in your
market.
How to calculate for the Market
Size?
Example:
Given:
Potential Customer = 1,000
Average annual revenue = 20,000
Solution: 1,000 x 20,000 = 20,000,000
Compute for the
Market Size:
1. Your organization markets learning
resources to schools. Your research shows
that there are 6,000 relevant schools in your
country. You know that the average sale per
school is around ₱50,000.
Compute for the
Market Size:
50,000 (average sale per school)

x 6,000 (number of relevant schools)
30,000,000
This means your market size is 30 million a year.

Compute for the
Market Size:
2. You’re selling toothpaste for people

with sensitive teeth. You estimate people
will get through one tube every three
months. Let’s say you have 500,000 target
customers.
Compute for the
Market Size:
500,000 (number of target users)

x 4 (purchases expected over 12 months)
2,000,000 per year
This means your market size is 2 million a year.

Market Share
and
Competition
Market surveys and the
calculation of market size
and value are important to
find out whether the
demand for a product really
exists.
What is Market
Share?
The portion of market controlled by a
particular company of product.
In other words, a company’s market

share is its total sales in relation to the
overall industry sales of the industry
in which it operates.
Real-life Examples
In the toothpaste industry, Colgate accounts for

over 80% of all toothpaste sales.
https://corporatefinanceinstitute.com/resources/economics/market-share/
Real-life Examples
In the smartphone industry, it
is one of the market leaders,
fighting very strong
competitors such as Samsung
and Huawei. In the majority of
the markets in which Apple
operates, the US-based
company enjoys, on average, a
market share of 70%.
https://corporatefinanceinstitute.com/resources/economics/market-share/
How to compute for
Market Share?
x 100
Note:
● Sales within the same period
● Final answer: Expressed in percentage (%)
Example:
SALES THIS YEAR MARKET SHARE
COMPANY A ₱ 250,000.00 16.12%
COMPANY B ₱ 400,000.00 25.80%
COMPANY C ₱ 900,000.00 58.06%
TOTAL SALES ₱ 1,550,000.00 100%

Compute for the Market Share: Mobile Phone
Industry
SALES THIS
MARKET SHARE (%)
YEAR
APPLE ₱ 650,000.00 22.45%
HUAWEI ₱ 345,000.00 11.92%
SAMSUNG ₱ 580,000.00 20.03%
VIVO ₱ 310,000.00 10.71%
OPPO ₱ 280,000.00 9.67%
REAL ME ₱ 390,000.00 13.47%
LG ₱ 340,000.00 11.74%
TOTAL SALES ₱ 2,895,000.0 100%
Market
Research
The process of collecting vital information about a
company's target audience, market, and competition.
Types of Market Research
Conducted to Know the Market:
1. Market Segmentation
2. Product Testing
3. Advertising Testing
4. Satisfaction and Loyalty Analysis
1. Market
Segmentation
The research that determines how your
organization divides its customers or target
market into smaller groups based on
characteristics such as age, income,
personality traits or behavior.
One of the main goals of market
segmentation is to allow for more efficient
and effective marketing tactics.
2. Product
Testing
Also called consumer testing or
comparative testing, is a process of
measuring the properties or
performance of products.
In other words, it is a process in
which consumers are asked to use a new
product and give their opinion of it
3. Advertising
Testing
It is the process of putting different
advertisement in front of a sample of
your target audience and asking for
feedback on them.
By taking potential campaigns directly to
your audience and gauging their response,
you can focus on creating truly impactful
advertising.
4. Satisfaction and
Loyalty Analysis
Satisfied customers aren’t necessarily loyal
customers, but consistently measuring
customer satisfaction is a great way to
increase customer retention.
This type of research aimed at identifying
key drivers of satisfaction and measuring
the likelihood of customers to continue
using a company’s products and services.
Market
Competitors
Companies who are trying to sell similar goods or
services to the same people.
Types of
Competitors:
1. Direct Competitors
2. Indirect Competitors
3. Replacement Competitors
4. Potential Competitors
5. Future Competitors
1. Direct
Competitors
●Offering the same product.
●Example: If you own a coffee shop, your direct
competitors are coffee shops in your area with coffee
as their main product.
2. Indirect
Competitors
●Offering other product but same industry and
same markets.
●Example: The indirect competitor of Jollibee is 7/11
because They both serve customers who want food
even though they sell different products.
3. Replacement
Competitors
●Offering a product of service that the customer
could be used as a substitute for your product or
services
●Example: A restaurant and coffee shop in the same
neighborhood could be replacement competitors.
Walking down the street, some customers may
choose to grab a to-go lunch from the coffee shop,
while others prefer the restaurant
4. Potential
Competitors
●A direct, indirect or replacement competitor that
currently has no distribution in your markets
●Example: An organic cosmetics company that is
popular in Europe but has no sales capabilities in
the Unites States represents a potential competitor
for American cosmetic firm
5. Future
Competitors
●A firm that has business capabilities that would
allow them to quickly take market share if they
entered your markets
●Example: A large technology company may be
perceived as a competitor of smaller technology firms
even if they haven’t entered their market yet
Do you have
Any Questions?
02
Post Test
1. What term is given to a group of people who share one or more
a. Market Segment c. SWOT Analysis
b. Market Share d. Profit Margin
2. Which of the following list of words refers to the number of
individuals in a certain market segment who are potential buyers?
a. Proportion c. Market Size
3. What is the amount by which revenues from sales exceeds costs
in a business?
4. What is a term which refers to a person, company, or country
that makes, grows, or supplies goods or commodities for sale?
5. Which of the following vocabulary words indicates a compilation
of your company's strengths, weaknesses, opportunities and
threats?
6. What kind of competitor offers a product or service that the
customer could be used as a substitute for your product or
services?
a. Direct Competitors c. Replacement
Competitors
b. Potential Competitors d. Future Competitors
7. Who among the following competitors refer to the firms that
have business capabilities that would allow them to quickly take
market share if they entered your markets?
a. Direct Competitors c. Replacement Competitors
8. Who are the direct, indirect or replacement competitor that
currently has no distribution in your markets?
Competitors
9. What kind of test is conducted to know whether or not the
product meets the needs of the customers?
a. Advertising Testing c. Loyalty Analysis
b. Product Testing d. Market Analysis
10.Write the formula to get the market share.
Post Test
Answer Key
1. What term is given to a group of people who share one or more
2. Which of the following list of words refers to the number of
individuals in a certain market segment who are potential buyers?
3. What is the amount by which revenues from sales exceeds costs
in a business?
4. What is a term which refers to a person, company, or country
that makes, grows, or supplies goods or commodities for sale?
5. Which of the following vocabulary words indicates a compilation
of your company's strengths, weaknesses, opportunities and
threats?
6. What kind of competitor offers a product or service that the
customer could be used as a substitute for your product or
services?
Competitors
7. Who among the following competitors refer to the firms that
have business capabilities that would allow them to quickly take
market share if they entered your markets?
a. Direct Competitors c. Replacement Competitors
8. Who are the direct, indirect or replacement competitor that
currently has no distribution in your markets?
Competitors
9. What kind of test is conducted to know whether or not the
product meets the needs of the customers?
a. Advertising Testing c. Loyalty Analysis
b. Product Testing d. Market Analysis
10.Write the formula to get the market share.
Company’s Total Sales Revenue for the Period X 100
Industry Total Revenue for the same period
Assignment:
Study for the Summative
Test #2
“The secret of
business is to know
something that
nobody else
knows”
- Aristotle Onassis
Thanks!
Stella Mari Francine A. Orcena
STEM 12 - Democritus
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MARKET

• Explain the concept of market share.

Producers Product Range

It is the maximum amount of revenue you can possibly

1. Count up all the potential customers that would

50,000 (average sale per school)

This means your market size is 30 million a year.

2. You’re selling toothpaste for people

500,000 (number of target users)

This means your market size is 2 million a year.

In other words, a company’s market

In the toothpaste industry, Colgate accounts for

COMPANY A ₱ 250,000.00 16.12%

COMPANY B ₱ 400,000.00 25.80%

COMPANY C ₱ 900,000.00 58.06%

TOTAL SALES ₱ 1,550,000.00 100%

CREDITS: This presentation template was created by Slidesgo,

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