The paper "Product Quality and Its Effects on Market Share" is a good example of a marketing research paper. Product quality refers to the unique characteristics and features of a given product, which enables it to fulfil certain obligations. The quality of a product may depend on the producer’ s specifications, or on consumer’ s unique desires. Some of the common features and characteristics of most goods for sale include their desirability, durability, cost and quality. Often, most producers and manufacturers have assurance or product quality departments, which control, monitor and promote quality of their outgoing products.
On the other hand, market share is the total sales that are earned by an organization over a given time period. Businesses evaluate their market share by dividing their total sales for a given period, with the total sales of the industry over the same period of time. According to most analysts, with the expansion of the market for business products, the ability to maintain or increase market share signifies competitiveness of the business. Also, an increase in market share might come from innovation, broadening demographic appeal, lowering of prices, or simply advertising.
Marketers can use market share as the single most crucial measure of the effectiveness of their marketing campaigns. Such efforts include advertising, product branding, and any other measures of improving product image and increasing sales. Market share serves as a crucial metric since it provides a relative benchmark against external benchmarks. This provides a comparison of a business performance relative to its competitors. Most organizations only focus on internal metrics such as loyalty, satisfaction and revenue growth, while disregarding the product’ s influence or share in the market.
Unfortunately, most of these internal metrics can be quite misleading. They can result in short term satisfaction, but they can affect the company’ s long term goals especially where it is performing way below its competitors. That is why many leading customer-centric organizations may be vulnerable to attacks by smaller competitors. Therefore, a measure of market share remains the most crucial metric for assessing any organization. It is essential for organizations to consider sales, revenues, and margins so as to assess its true market share. There are different ways of measuring market share.
Measuring revenues or absolute sales against total units, sales, or revenues is the easiest. However, measuring absolute volumes per units sold or total sales may not present the full picture, which needs an assessment of the market share. Nevertheless, the market share must go hand in hand, with the organization ability to generate revenues and sustain profitability (Saleem, 1999, P. 27) Background Various organizations are involved in manufacturing different types of products and avail them in the market. But, there arises a problem when it comes to commanding the market share.
This is as a result of unsatisfactory quality that they offer to their customers. If the product quality is not improved and made superior, an organization is likely to acquire low market share and it’ s also likely not to be having a competitive edge in the market. The quality, reputation, and any other feature of a product can be determined by the location it has been produced from. Place names in a given country, geographical indications and some words that are associated with a place are mostly used to identify goods coming from these places.
The negative perception that occasionally affects the consumers’ depend on various factors, which may include the time utilized when preparing and marketing of the products that are difficult in selecting the best deals for consumers. When it comes to conducting a product evaluation process, it may be complicated and time-consuming. Additionally, it may also be a good opportunity to obtain enhancements for market research strategies.
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