What is a market share analysis?

Market share analysis serves as a critical tool for businesses to understand their position within a specific market. It involves evaluating a brand's or product's sales relative to the total sales of all products within the same category. This analysis helps companies identify their competitive standing, track performance over time, and make informed strategic decisions.

By focusing on the portion of sales that a brand or product captures in comparison to the total category sales, businesses can gauge how well they are performing against competitors. This insight is essential for determining growth opportunities, market trends, and areas that may require strategic adjustments.

The other options, while related to marketing and product management, do not specifically define market share analysis. Assessing consumer preferences and satisfaction levels centers on understanding customer behavior rather than sales metrics. Developing promotional campaigns relates to marketing strategies without direct reference to market share. Selecting optimal product assortments involves inventory and merchandising strategies but does not inherently analyze market performance compared to industry benchmarks.