market penetration

Meaning

This term refers to the measure of how much a product or service is being used by customers compared to the total estimated market for that product. It can also describe a strategy where a company attempts to sell more of its existing products into current markets to gain a higher share. It is commonly used in marketing, sales, and corporate strategy discussions.

Examples

• Our primary goal for the next fiscal quarter is to increase our market penetration in the European sector.

  Our primary goal for the next fiscal quarter is to increase our market penetration in the European sector.

• By lowering prices temporarily, the startup achieved rapid market penetration and outpaced its competitors.

  By lowering prices temporarily, the startup achieved rapid market penetration and outpaced its competitors.

• The report indicates that we have reached a fifteen percent market penetration in the organic food industry.

  The report indicates that we have reached a fifteen percent market penetration in the organic food industry.

• Without a solid marketing campaign, achieving significant market penetration for this new software will be difficult.

  Without a solid marketing campaign, achieving significant market penetration for this new software will be difficult.

• The company's aggressive pricing strategy was designed specifically to maximize market penetration.

  The company's aggressive pricing strategy was designed specifically to maximize market penetration.

Common Mistakes

• ✗ Our company wants to do market penetration in Asia next year.

  ✓ Our company wants to achieve market penetration in Asia next year.

  We do not 'do' market penetration. Instead, we use verbs like 'achieve', 'increase', 'improve', or 'maximize' with this noun phrase.

• ✗ We are launching a completely new product in a brand new industry to get market penetration.

  ✓ We are launching a completely new product in a brand new industry to diversify our portfolio.

  Market penetration specifically refers to selling existing products in existing markets. Entering a new market with a new product is called diversification, not market penetration.

Related Expressions

Practice

• The marketing team is focusing on ___ to sell more of our current software to existing corporate clients.

  💡 Selling existing products in existing markets

  Show answer

  market penetration

• To calculate our ___, we need to divide our total number of customers by the target demographic's population.

  💡 The measure of a product's reach in a market

  Show answer

  market penetration

• Low pricing at launch is a classic tactic used to accelerate ___.

  💡 Gaining a foothold in an established market

  Show answer

  market penetration