Teaching Notes for this Activity
In this activity, students look at a simple output from a market share spreadsheet and attempt to interpret the results and consider the difference between unit and revenue market share.
Additional Resource: Guide to Market Shares, with free Excel templates
Review the following table, which shows the unit market share and the revenue market share for the five brands in the marketplace – and then answer the questions at the end.
- Which brand is the market leader according to UNIT market share?
- Which brand is the market leader according to REVENUE market share?
- Why is there a difference between these market share rankings?
- Do you think it would be better to be the UNIT or the REVENUE market share leader? Why?
- Review the price premium metric. How do you think that it is calculated?
- What does the price premium tell us about the relative strength of the brands?
- In this market, to what extent do you think that price is a strong and effective marketing tactic to gain market share?