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Examples of market penetration

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  • 01.03.2019
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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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6 Market penetration examples for successful expansion

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Market Penetration Definition & Example

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. This strategy involves selling current products or services to the existing market in order to obtain a higher market share. This could involve persuading current customers to buy more and new customers to start buying or even converting customers from their competitors. New strategies involve utilizing pathways and finding new ways to improve profits and increase sales and productivity in order to stay relevant and competitive in the long run.
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Market Penetration: Examples, Definition, Advantages & Disadvantages

There are many market penetration examples that have been tried and tested for retail expansion strategies. And the recipe for success is always different. Market penetration can be understood as a strategy to enter into a new market.
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