Sample interview questions: How do you conduct market share analysis and competitive benchmarking?
Sample answer:
Market share analysis and competitive benchmarking are crucial components of a marketing analyst’s role. They help businesses understand their position in the market and evaluate their performance against competitors. Here is a detailed explanation of how to conduct these analyses effectively:
-
Identify relevant competitors: Begin by identifying the key competitors in your industry or market segment. Consider both direct competitors who offer similar products or services and indirect competitors who fulfill similar customer needs.
-
Gather data: Collect relevant data on both your company and competitors. This may include financial reports, sales data, market research reports, customer surveys, and industry publications. Utilize various sources such as government databases, industry associations, and market research firms.
-
Define the market and calculate market size: Clearly define the market you are analyzing. Determine the total market size by estimating the total revenue or units sold within that market. This helps you understand the overall potential and scope of the market.
-
Calculate market share: Divide your company’s sales revenue or units sold by the total market size to calculate your market share percentage. For example, if your company’s revenue is $10 million and the total market size is $100 million, your market share would be 10%.
-
Analyze trends: Compare your market share over time to identify any trends or changes. Determine if your market share is growing, declining, or remaining stable. This analysis helps you gauge the effectiveness of your marketing strategies and identify areas for improvement.
-
Conduct competitive benchmarking: Compare your company’s performance against competitors in various areas, such as pri… Read full answer