What is market 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. Market penetration can also be used in developing strategies employed to increase the market share of a particular product or service. 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.
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Market Penetration

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What is MARKET PENETRATION? definition of MARKET PENETRATION (Black's Law Dictionary)

Market penetration refers to the successful selling of a product or service in a specific market. It is measured by the amount of sales volume of an existing good or service compared to the total target market for that product or service. Igor Ansoff first devised and published the Ansoff Matrix in the Harvard Business Review in , within an article titled "Strategies for Diversification". With numerous options available, this matrix helps narrow down the best fit for an organization.
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Market Penetration Strategy

As soon as a company enters a new market, it strives for market penetration. The main objective behind the market penetration strategy is to launch a product , enter the market as swiftly as possible and finally, capture a sizeable market share. Market penetration is also, sometimes used as a measure to know whether a product is doing well in the market or not. Watch our Demo Courses and Videos. A company trying to adopt the concepts of market penetration must remember to also implement specific plans and tactics to challenge the competitors and boost sales figures.
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Market penetration is a technique of increasing the market share of a product by adopting creative strategies such as advertising, bundling, discounted volumes and prices. It measures the sales volume achieved by a product or a service in relation to the total market volume, i. This successful business strategy is adopted to introduce a new product or create a new market base for the existing product. The objective of this strategy is to acquire a large market share in quick time.
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