Distribution share refers to the proportionate amount or percentage of a given product or service that is sold or distributed by a particular company or brand in a specific market or industry. It represents the market share of a company's product distribution compared to its competitors.
In the context of sales and marketing, distribution share is often used as a key performance indicator (KPI) or metric to evaluate the success and reach of a company's distribution network. It helps determine the extent to which a company's products are available to customers and the effectiveness of its distribution channels in reaching its target market.
Distribution share can be calculated by dividing the total units or value of a company's product sales by the total units or value of the entire market segment. For example, if a company sells 1 million units of a product in a market segment with a total sales volume of 10 million units, its distribution share would be 10%.
Having a high distribution share indicates that a company has a strong presence and competitive advantage in the market, as it is able to reach a significant portion of potential customers. In contrast, a low distribution share suggests that a company may need to improve its distribution strategies and expand its reach to increase market penetration and competitiveness.
Overall, distribution share is an important metric for companies to evaluate their market presence, distribution effectiveness, and competitive position in a specific industry or market segment.
The etymology of the word "distribution share" can be broken down as follows:
1. Distribution: The term "distribution" comes from the Latin word "distributio", which means "a dividing or a dispersing". It derives from the verb "distribuere", which combines "dis-" (meaning "apart" or "in different directions") and "tribuere" (meaning "to give" or "to assign").
2. Share: The word "share" has Middle English roots, deriving from the Old English word "scearu". It is akin to the Old Norse word "skor", meaning "a division" or "a part". The concept of sharing, dividing, or apportioning something among multiple parties is inherent in the term "share".