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why does market share change all the time

It is nearly impossible for small companies to stay complacent with their marketing and advertising. A major reason is that a competitor may initiate a marketing strategy that challenges a small company's position in the marketplace. For example, a major competitor may challenge the small company's status as the quality leader in the industry. They may hire a number of engineers and improve the quality of their own products. Subsequently, the competitor may advertise its high-quality status, taking some business away from the smaller company. In this case, the small company must act to ensure its customers that it still remains the quality leader.

The company may start doing more comparative advertising between itself and the competitor to demonstrate the superiority of its products. Small-business owners may also need to change distribution channels to keep up with changing competitive strategies. New competitors may also be a threat to a company's market share and continued success.
Definition: Marketing intelligence is the external data collected by a company about a specific market which it wishes to enter, to make decisions. It is the first set of data which the company analyses before making any investment decision. Description: Marketing intelligence is usually the first data set analysed by a company about a specific market.

It could be related to population age in that area, infrastructure facilities, spending habits of consumers, state or government regulations etc. Marketing intelligence is all about gathering information on various data sets, analysing the information, breaking down the data into small subsets and the distribution of information to the relevant department of the company. A purchase department in a company would need a different data set under marketing intelligence, while a sales department would need something different.

There are four main corner stones of marketing intelligence. The first one is competitor intelligence, the others are product intelligence, market understanding and customer understanding. Let s understand each one of them in detail. Competitor intelligence is a legal method of obtaining information about products in a competitor s portfolio. It is about analyzing strengths and weaknesses of the competitor. The basic goal of competitive intelligence is to make better business decisions. Product Intelligence is related to gathering information about your own product. The focus around product intelligence is on gathering information about the quality and performance of the product.

This is usually an automated process. With the help of this knowledge, the company tries and makes the user experience better or makes changes in the product itself to make it safer or add new features. Market Understanding is a concept wherein the company tries to understand the performance of the product in which it is already operating as well as looks at other markets where it wants to launch its product thoroughly. Finally, understanding the customer is the utmost important aspect in the life of any product. It is key to the success of the product pre- and post-sales.

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