Marketing key words and calculations

• What is market share?

  Percentage of sales in a market
• How is market share calculated?

  Sale of business/product divided by market size
• If a product has sales of 200 units and the market size is 1000 units, what is the market share?

  20%
• What does market size refer to?

  Total sales in the market
• How can market size be expressed?

  In units or pounds
• If a market has 500 units sold at a selling price of £10, what is the market size?

  £5000
• What is market growth?

  Development of the market over time
• How is market growth calculated?

  New market size minus old market size
• If the old market size was £2000 and the new market size is £2500, what is the market growth percentage?

  25%
• What is the formula for calculating market growth percentage?

  (New market size - old market size) / old market size x 100