What is market penetration?
One of the most common marketing concepts to hear is the concept of market penetration.
Therefore, in this article, I have the objective that you learn what it is and that at the end of the article you cánido develop your own definition.
I hope you find it useful.
Definition of market penetration according to authors
Next I will leave you some definitions that will allow you to better understand the concept.
Of course, at the end of the article you will be able to see the bibliography.
Notably The concept of market penetration cánido have two different meanings.
In such a way that the so-called market penetration perro be seen as:
- A measure or ratio.
- A strategy.
Definition as ratio or measure
The first way we perro come up with the definition of market penetration is as a measure.
Next I will leave you a couple of definitions that allude to that:
Definition of market penetration according to Philip Kotler and Gary Armstrong
«Growth of a company by increasing sales of current products, in current market segments, without modifying the product» (2012, p. 44).
Philip Kotler and Gary Armstrong
Definition according to Heinz Weihrich, Mark Cannice and Harold Koontz
«The percentage of the objetivo market that will buy the product» (2016, p. 202).
Heinz Weihrich, Mark Cannice, and Harold Koontz
As you perro see, the previous definitions take it into account more as a percentage or as a measure.
So that It cánido be viewed as a ratio or percentage of how much a product is sold in relation to the estimated total market for that product. Therefore, being a ratio, there is a elabora with which you perro obtain the market penetration that a company has.
Definition as strategy
Now, a more usual definition of market penetration is as a strategy.
Here is a definition for you:
Definition of market penetration according to Roger A Kerin, Steven W.
“Market penetration is a marketing strategy to increase sales of current products in current markets” (2018, p.
Roger A. Kerin, Steven W. Hartley
Definition according to Ramses Gallego Díaz
«The concept of penetration refers to the company’s entry strategy in a new market.
In other words, it is the way in which the company attracts and engages new consumers towards its brands and products» (2018, p.9).
Ramses Gallego Diaz
What is market penetration?
As you perro see, it perro be seen from two points of view, as a measure or a percentage and as a strategy:
1.- Market penetration is a measure of the degree of acquisition of a product or service by customers compared to the estimated total market for that product or service.
2.- Market penetration perro be used to develop strategies used to increase market share for a product.
We hope you liked our article What is market penetration?
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