What determines "Market Share"

[DUALDISASTER]

Let's look at what determines it:
1.pricing strategies
2.software
3.consumer awareness
4.favorable brandname
5.media attention
5.trends

Now i'm wondering, how come "product value" won't fit? Razor phones were outrageously high in price but still sold and it's value did not metrit the price. Consoles price and media attention seem to be the determining factors, could be wrong when it comes to foreign contries. But what make WII and DS so hot on the charts? Is it really price? Is it software or is it merely trend. Is the market so fickle there could never be a steady dominant brand? Discuss!

 

[DUALDISASTER]

The word's dominant; I swear I'm going to come down a like a hammer.

There. So now can we Discuss?

 

[Carl B]

LOL, yes - thank you for that.

Anyway in my view when it comes to the market there's no role played by value - only perceived value. Afterall, what's vallue for me may not be value for you, or I the consumer may not simply understand what is being sold or why, what it does for me, or why I want it. Marketing exists to, ideally, convey these messages... but goes beyond that of course to shift value perception past explanation towards distortion.

There's a lot that plays into market demand, and so much of it is social. PS3 is slightly stigmitized at the moment, Wii has "social phenomenon" written all over it a la Tamagachi, and I think 360 represents how a 'normal' product is received.

Since we're talking gaming specifically (as you mentioned software), I think all of your listed points combine to help shape the social context for the products performance, just as that social context in turn influences each of those factors on an individual basis; very easy to set up a positive feedback loop if things align.

PS - What determines marketshare is number of consoles sold relative to the competition; I think your thread deals less with marketshare per se, than market demand in particular.

 

[DUALDISASTER]

I still won't buy into it. I really don't see too many WII ads and look at it. It's been known that ps3 has a lot of value but most people believe that the stuff it has should not be in a gaming console thus value is lost. Marketing goes so far, so i bring up "perceived value". It is believed by the masses that the wii can be as fun as the others and be affordable. Who determined that? There are no games that are better on a score bases than the others so how can anyone say this?

 

[Readykilowatt]

The overwhelming majority of people who are confused by the Wii's success are the one's who have never touched the console.

 

[DUALDISASTER]

The overwhelming majority of people who are confused by the Wii's success are the one's who have never touched the console.

I have and i must say i'm not impressed. Nothing stands out as being new and fresh but that's besides the point. The thread is about what determines "Market Share", not fancying WII.

 

[TheChefO]

Now i'm wondering, how come "product value" won't fit?

Nice thread.

I think product value does fit. If every person had a 50"+ 1080p HDTV currently, and BR was the only HD disc format, I think you'd see many more sales of ps3 vs the competition. Still wouldn't match ps2 levels of success though because regardless of value, some people have limits on what they will spend for entertainment devices.


When DVD launched, they were $1000-550. These players could be hooked up to the vast majority of tv's in homes currently and display a vastly superior picture over existing standards while at the same time, saving space and zero loss of quality over time. DVD still didn't really take off until players were <$300.

NeoGeo was clearly superior to every game machine on the market and did not require a new tv to take advantage of this superiority. Yet, with a $600 price tag, it didn't sell well. Dito, 3DO.

The majority of the market is price sensetive above all else.