Definition of Market penetration:
The extent to which a product is recognized and bought by customers in a particular market.
Market penetration is a measure of how much a product or service is being used by customers compared to the total estimated market for that product or service. Market penetration can also be used in developing strategies employed to increase the market share of a particular product or service.
The activity or fact of increasing the market share of an existing product, or promoting a new product, through strategies such as bundling, advertising, lower prices, or volume discounts.
Market penetration can be used to determine the size of the potential market. If the total market is large, new entrants to the industry might be encouraged that they can gain market share or a percentage of the total number of potential customers in the industry.
A measure of the extent of a products sales volume relative to the total sales volume of all competing products, expressed as a percentage. Formula: Sales volume of a product x 100 ÷ Total sales volume of all competing products.
How to use Market penetration in a sentence?
- We had to incorporate some market penetration that would probably make us more money over the course of the year.
- Sometimes there will be a big market penetration and this may have adverse affects on your business and its product.
- Market development is the strategy or action steps needed to increase market share or penetration.
- Market penetration is a measure of how much a product or service is being used by customers compared to the total estimated market for that product or service.
- The market penetration generated by the new strategy was effective and our next quarters profits reflected the positive change for us.
- Market penetration also relates to the number of potential customers that have purchased a specific company’s product instead of a competitor’s product.
Meaning of Market penetration & Market penetration Definition