Calculating market penetration

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New Strategies involve utilizing pathways and finding new ways to improve profits, increase sales and productivity, in order to stay relevant and competitive in the long run. 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. Our in-depth tools give millions of people across the globe highly detailed and thoroughly explained answers to their most important financial questions. 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. Your market penetration of U. The other three growth strategies in the Product-Market Growth Matrix are:. For instance, if you sell music CDs your target customers may be young people between the ages of 12 and

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Compare the estimated market penetration range with the number of customers your company requires to earn a profit -- as determined in your business plan -- to evaluate the probability of a successful business.

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Market Penetration

During the operation of the business, if the sales are decreasing or flatlining comparing to previous years, then it is also appropriate to apply market penetration strategy to seek for opportunities to increase sales. Unitize your sales based on your defined target customer. Your market penetration of U. The market share of a brand is a factor of the brand penetration share, the heavy usage index and the share of requirements, according to Reibstein. Examples include six bars of soap in one package or a six-pack of beer. Integrated sales and marketing management:

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