ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What does it mean to increase market share? To increase market share means increasing the effort you put into sales as a business, and using new or additional strategies to help you get there. Market share is the percent of total sales in an industry generated by a particular company.

Detailed explanation-2: -By strengthening their existing customer relationships, companies protect their existing market and ensure no loss of the existing customer base owing to high competition. This also increases customer satisfaction, which in turn helps increase customer base through word-of-mouth.

Detailed explanation-3: -Specifically, as market share increases, a business is likely to have a higher profit margin, a declining purchases-to-sales ratio, a decline in marketing costs as a percentage of sales, higher quality, and higher priced products.

Detailed explanation-4: -selling more to existing customers. focusing your customer service and marketing efforts on retaining customers. expanding your customer base to include similar people who are not currently customers. selling through new channels or into new markets. More items