Definition of Market Penetration

Market penetration is a term used as a measurement or acts in management. Market penetration as measurement means how many units of your products are sold as compared to the market size and your competitors. This measurement is taken in percentage.


Formula of Market Penetration Rate:

Market penetration rate = (number of customers ÷ target market size) x100


Market penetration is also defined as an act where a company enters a market with a similar product that already exists in the market. This strategy is the best strategy adopted by the companies to take market share from the competitors. Companies are not required to invest in risky projects and launch new products to enter the market. However, for successful market penetration, strong strategy and implications are required for company survival in the tough competitive environment.

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