Restaurant
A vegetarian restaurant in a small town estimates that there are 12,000 vegetarians in the area. They have 1,200 unique customers in a year. They estimate their market penetration as follows:penetration = (1,200 / 12,000) x 100 = 10%The restaurant decides to invest in local advertising to reach more customers.Business Services
A telecom company has identified 1,300 corporate customers as their target market. They currently have signed 883 customers. They calculate their market penetration as:penetration = (883 / 1,300) x 100 = 67.9%The firm decides to expand their distribution to reach a broader target market.Fast Moving Consumer Goods
A market research firm estimates the percentage of total customers in a nation that have purchased a variety of branded consumer products each quarter. Firms use this information to evaluate their customer base and develop strategies in areas such as advertising and promotion.| Overview: Market Penetration | ||
Type | ||
Definition | The percentage of a target market that purchase a product, service or brand in a period of time. | |
Related Concepts | ||
