What does 'market share' mean?

Market share refers to the percentage of a market that is controlled by a specific company, representing its proportion of total sales within that market. This metric is important for businesses as it provides insight into a company's competitiveness and its relative position compared to other companies in the same industry. By understanding its market share, a company can gauge its performance and strategize on how to increase its presence in the market.

In contrast, the other options do not accurately define market share. The total sales of a company in a year is a reflection of its revenue but does not convey its proportion compared to the entire market. Financial profit represents the earnings of a business after expenses, which is different from market share as it doesn’t indicate how much of the market the company controls. Finally, the total number of customers a company has only accounts for its customer base, without relating it to the overall market size. Thus, the correct understanding of market share is essential for evaluating a company’s success and positioning in a competitive landscape.