Market penetration means the percentage of people that used or selected your product in a certain location. For example, let’s say that you sell products in Italy. If 500 people out of 5000 purchase your product, then market penetration is 10%.
Market penetration is used by global companies to see the percentage of potential buyers that either bought a product from the competition or didn’t purchase the product you are selling at all.
What is a market penetration strategy?
A market penetration strategy is known as all of the activities done to enter a new market. There are different types of market penetration strategies depending on the type of product and the market that needs to be entered.
The most commonly used strategy is pricing penetration. It means lowering the price of the product so that it is smaller than those of the competitors.