Vocabulary【Market Share Terms】
Total addressable market, or TAM, is the total market demand for a product in a year.
It is used to indicate how much potential a business has in a market.
Before calculating TAM, a company should consider its ability to reach its target market.
addressable: 可追尋的
target market
A target market refers to a group of consumers that a product or service is aimed at.
These customers can be identified by income level, age, gender, or location.
By defining a target market, companies can make their marketing campaigns more focused.
unit sales
Unit sales refers to the number of products a company sells over a period of time.
For example, if a company sold 5 million mobile phones in a year, then it sold 5 million units.
Unit sales analysis can be used to calculate a company's average product price.
key players
Companies with a large market share are known as key players.
They have a dominant position in the market.
Without competitive products and services, new companies may struggle to compete with key players.
However, by analyzing key players' strengths and weaknesses, companies can find their own niche in a market.
find sb' niche: 創(chuàng)出一番天地
market growth rate
Market growth rate refers to the percentage increase in sales in a market over a period of time.
Keeping track of the market growth rate allows a company to compare its performance with competitors'.
For example, if a company's sales have grown less than market sales, it has lost market share.
Question
- Comparing unit sales regularly can help determine if the company is moving in a positive direction.
- If a new companies can compete successfully, they are likely to become key players within a market.
