Straightforward question, straightforward answer. Here’s Dr Bhaskar Das in the July 19 edition of Das ka Dum. Read on…
If you wish to access the archives, please go to the Das Ka Dum tab on the website’s top navigation bar or click here: https://www.mxmindia.com/category/columns/das-ka-dum/
Q. Are CMOs too focussed on market share of a product/service as a measure of sucesss? Or should the primary focus be on profit?
A. I feel market share is a key indicator of a company’s market (read segment/ category) competitiveness. When a company increases its market share, this should automatically improve its profitability. This is generally expected to happen as companies increase in size, they can also increase their scale. This, in turn, enables a company to offer optimal prices that balance profit, profitability and growth, thereby limiting the possibility of competitors’ growth.
In essence, I mean a profitable market share growth should be the dominant objective of a CMO.