Definition market penetration
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. The market penetration generated by the new strategy was effective and our next quarters.
Popular 'Advertising, Marketing, & Sales' Terms
Market penetration is a measure of the amount of sales or adoption of a product or service compared to the total theoretical market for that product or service.
Description:With the findings from the primary and secondary research stages in hand, it becomes possible to formulate a reliable market penetration plan. For instance, before entering a new market, businesses must devote time and resources to estimate their market penetration potential—the primary and secondary research stages previously described. Questions, brainstorming and discussions can help distinguish whether it is the best time for market growth. Small-scale entry into foreign markets, on the other hand, may leave some flexibility and time to learn about the new environment while also limiting exposure to potential pitfalls, but it also limits the potential for market penetration and capturing worthwhile portions of market share. Construction[ edit ] Market penetration can be defined as the proportion of people in the target who bought at least once in the period a specific brand or a category of goods. If the market development plan involves developing new product lines, expanding the scope of existing product lines, consider these questions: But because of their success, the category of western fast food became a cultural novelty across the most populous country in the world.