You learned in the chapter that most marketers today feel pressure to measure (quantify) their level of success in market planning. They do this by setting and then measuring market- ing objectives. One popular metric is market share, which in essence represents the percentage of total product category sales your products represent versus category competitors. For example, recent statistics indicate that Lenovo holds the num- ber-one market share in global PC sales with about 21 percent, topping HP with about 19 percent. Ranked third through fifth are Dell, Apple, and Acer, respectively.25 But, despite its com- mon appearance in marketing objectives, market share has been heavily criticized as a metric. Often it can become more of a "bragging right" for a firm than a profit enhancer. This is because especially in situations like the global PC market that is seeing heavy annual declines in sales as tablets and other devices replace PCs-investing in being number one in market share may deflect focus away from more lucrative new and growing product lines. 3-19. Under what conditions do you believe market share as a metric is important to a firm? What are the potential pitfalls of relying too much on market share as a key metric? What self-defeating behaviors might this over- reliance lead a firm to undertake? 3-20. Come up with some other product categories besides PCs that are dedining and identify the firms within those categories that have the highest market share. What does their profit picture look like?
You learned in the chapter that most marketers today feel pressure to measure (quantify) their level of success in market planning. They do this by setting and then measuring market- ing objectives. One popular metric is market share, which in essence represents the percentage of total product category sales your products represent versus category competitors. For example, recent statistics indicate that Lenovo holds the num- ber-one market share in global PC sales with about 21 percent, topping HP with about 19 percent. Ranked third through fifth are Dell, Apple, and Acer, respectively.25 But, despite its com- mon appearance in marketing objectives, market share has been heavily criticized as a metric. Often it can become more of a "bragging right" for a firm than a profit enhancer. This is because especially in situations like the global PC market that is seeing heavy annual declines in sales as tablets and other devices replace PCs-investing in being number one in market share may deflect focus away from more lucrative new and growing product lines. 3-19. Under what conditions do you believe market share as a metric is important to a firm? What are the potential pitfalls of relying too much on market share as a key metric? What self-defeating behaviors might this over- reliance lead a firm to undertake? 3-20. Come up with some other product categories besides PCs that are dedining and identify the firms within those categories that have the highest market share. What does their profit picture look like?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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