Advertising
Marketing is an important part
of almost any business.
What are some of your
favorite advertisements?
Lesson Objective
Calculate the market share of a new product.
Content Vocabulary
market share
market share
The percent of the entire market that
purchases a product instead of a
competing product.
Example 1
Amdex sold 1,200,000 air conditioners
during the year.
During the same period, a total of 8,000,000
air conditioners were purchased in the
entire U.S. market.
What was Amdex’s market share for the
year?
Example 1 Answer
Step: Find the market share.
Total Product Sales ÷ Total Market Sales
1,200,000 ÷ 8,000,000 = 0.15 or 15.0%
Practice 1
Chimes Gifts sells approximately $750,000
in clocks annually.
The total annual sales of clocks in the entire
market are about $34,500,000.
What is Chimes’ market share for clocks?
Practice 1 Answer
2.2 percent
Practice 2
Find the market share.
Total product sales: $800,000
Total market sales: $10,000,000
Practice 2 Answer
8 percent