Which of the following metrics measures a company's market influence?

Get more with Examzify Plus

Remove ads, unlock favorites, save progress, and access premium tools across devices.

FavoritesSave progressAd-free
From $9.99Learn more

Prepare for the Foundation of Marketing Exam. Study with engaging flashcards and multiple-choice questions, each with detailed explanations and insights. Get a thorough understanding of marketing principles!

Market share is the metric that measures a company's market influence. It represents the portion of a market controlled by a particular company and is expressed as a percentage of total sales in that market. A higher market share indicates that a company has a greater ability to influence its market, as it suggests a stronger competitive position and a more significant presence relative to its competitors. Companies with substantial market share often have the resources, brand recognition, and customer loyalty necessary to impact pricing, distribution, and marketing strategies effectively.

While the other choices provide valuable information about different aspects of a business, they do not specifically measure market influence. Employee satisfaction scores can indicate internal company health but do not reflect external market positioning. Average prices provide insights into pricing strategies but do not directly correlate with a company's ability to influence its market. Advertising expenditure indicates the level of investment in marketing communications but does not necessarily translate into market influence without context regarding market share. Thus, market share stands out as the most relevant metric for assessing a company's impact on its overall market.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy