How to Build Market Share Strategically
Market share is your percentage of total sales in a defined market at a specific time. Traditionally, opportunities to increase market share came in high growth markets, or when introducing new products; when your competitors were asleep at the wheel or in financial distress, and when a parent company provides additional resources.
Today’s market intelligence can help increase market share for most businesses ready to use it strategically. Many companies guess at what their market share is. A common fault is overestimating their own share and underestimating their competitors’ share.
Higher market share results in higher profits. Here’s how to build market share strategically using market intelligence.
Define Your Market
To know your share you need to define your market by size and geographic area. Know who your buyers are and what they own. If you sell new construction equipment your buyers are likely contractors, government agencies, material producers, utilities, mining companies and industrial firms. Market intelligence lets you go beyond that to include equipment fleet owners whose leases are expiring or those starting new projects. Even those who rent equipment or need parts can be identified. Knowing who all of your potential buyers are allows you to reach out and grow.
Use Reliable, Timely, Relevant Market Data
Because market share is viewed in specific time periods, get notified as new data becomes available for your market. Keep the pulse of your market and be proactive. You will better target growth opportunities and outdo your competition. Get credible data from multiple sources.
A recent construction equipment industry report shows the overall market reached $143.6 billion in sales during 2012. About 43% of that revenue came from the sale of earthmoving equipment. Those are big numbers that won’t tell you about your specific market. With EDA data and market intelligence you can filter and search for equipment sales relevant to your business, in your market. On the spot, you can create market share reports by manufacturer, model, and equipment.
Know the Competitive Environment
Be ready to manage competitive pressures. Know who your competitors are for each machine category and how much market share they have. Monitor their sales and the customers who may be interested in switching brands. See who the leaders are in your market by date, geography, and equipment. This will help you assess your market strengths and weaknesses. Target weaker competitors and prepare marketing materials that address them head-to-head. Find hotspots in your region and allocate the necessary resources.
Target Your Marketing
Lots of factors influence marketing. When you know who owns what equipment, their financial position, and history of buying decisions, a targeted approach is readily achievable. A well-documented customer history allows you to predict future buying behavior. Understanding their buying motivation and business goals lets you put the offer in front of them at the right time.
Increasing market share is best tackled with a strategic approach, exploiting competitor’s weaknesses and taking advantage of your strengths. Offer the best solution based on what you know about your buyers and competitors, what the data shows, and your confident ability to deliver. Your market share will grow.