When it comes to understanding the dynamics of marketing, two terms that frequently come up are "market share" and "share of voice." These metrics are crucial for any business wanting to assess its impact in the marketplace. Today, we’ll take a closer look at these concepts, using the one of our favorite brands, Disney, as an example.
What is Market Share?
Market share represents the percentage of an entire market's sales that is controlled by a particular company over a specific time period. This measure helps businesses gauge the size of their audience relative to the total market. Essentially, it tells us how much of the market a brand owns.
For instance, consider Disney's presence in the entertainment industry. Disney owns a significant portion of the market in sectors like family entertainment, theme parks, and movies. If we say that Disney holds a 35% market share in the family entertainment industry, it means that 35% of all family entertainment sales come from Disney products or services.
What is Share of Voice?
Share of voice, on the other hand, refers to the visibility of a brand's advertising within a specific market. It measures how much a brand is talked about compared to its competitors, usually in terms of advertising presence. This metric is often used to analyze the effectiveness of marketing campaigns in capturing the audience's attention.
Taking Disney as an example again, let us consider its advertising efforts. Disney frequently launches extensive marketing campaigns for its movies and theme parks. If we analyze the advertising landscape for theme parks and find that Disney's advertisements make up 50% of all theme park ads seen or heard by consumers, Disney has a 50% share of voice in that niche.
Why are These Metrics Important?
Understanding market share and share of voice can provide crucial insights into a company's performance and its competitive position. A high market share often indicates that a company is a leader in its market, suggesting financial strength and brand popularity. Meanwhile, a high share of voice can amplify a company's market share by increasing brand awareness and customer loyalty.
Disney leverages both these metrics to maintain its dominant position in the market. By ensuring that it not only sells the most but also remains the most visible through advertising,
In other words, for any business, large or small, understanding and monitoring market share and share of voice provides valuable insights into where they stand in the competitive landscape and how visible they are to their potential customers. Whether you are a global powerhouse like Disney or a small startup, these metrics are indispensable tools in your marketing arsenal. They help you strategize, measure success, and steer your business toward long-term growth.
Remember to check our previous posts to discover more information about marketing strategies from a Disney perspective, to craft winning campaigns, and increase your business's market share and share of voice. As always, have a magical day, and see you in the next post.
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