Definition of Market penetration:
To the extent that consumers recognize and buy a product in a specific market.
Market penetration is the extent to which a user uses a product or service in relation to the total estimated market for that product or service. Market intervention can also be used to develop strategies that increase market share for a particular product or service.
Activities or initiatives to increase the market share of existing products or to promote new products through strategies such as packaging, advertising, low prices or volume discounts.
Market intervention can be used to determine the size of a potential market. If the market as a whole is large, newcomers may be encouraged to gain market share or a percentage of potential customers in the industry.
A measure of the total sales volume of a product in relation to the total sales volume of a competitive product, expressed as 100%. Formula: All competitive product product sales volume x 100% total sales volume.
How to use Market penetration in a sentence?
- We have to intervene in the market which will probably make more money for us as the years go by.
- Sometimes, there is a strong market penetration that can negatively affect your business and products.
- Market growth is a strategy or steps needed to increase market share or penetration.
- Market penetration is the extent to which a user uses a product or service in relation to the total estimated market for that product or service.
- Market penetration provided by this new strategy was effective and our results for the next quarter reflect a positive change for us.
- Market penetration is also likely to be based on the number of potential customers who have purchased products from a particular company, not competitors' products.
Meaning of Market penetration & Market penetration Definition