What is Market Penetration?
Market penetration refers the company growth by increasing sales of current products to current market segments without changing the product. It is the percentage of the market that has purchased your product.
It can spur growth through marketing mix improvements – adjustments to its product design, advertising, pricing, and distribution efforts.
Practical Example
Armour Company offers an ever-increasing range of styles and colors in its original apparel lines. Boosted its promotion spending in an effort to drive home it’s “performance and authenticity” positioning. And added direct-to-consumer distribution channels, including its own retail stores, websites, and toll-free call center. And their sales grew 50%.
In Sentences
- Quantifiable production is important for market penetration for any new startup.
- 100% market penetration for a company means the it has successfully overcome all the competitors in the market.