What is the penetration of the market?
The market penetration is a term that shows how the product or service has been deeply rooted by the consumer market. The degree of penetration is often measured according to the amount of sales that are generated on the market itself. A product that generates twenty percent of sales made on a given market would say that it has a higher level of penetration on the market, that a similar product that will realize ten percent of total sales on the same market.
Determination of what is the consumer market is the key to the process of proper calculation of market penetration. In some cases, the market is defined as consumers who actually use a given type of product or service. Other situations require not only current consumers but also potential consumers. The first is more useful in evaluating the market for the product of the product among active users today, while the second is usually useful when trying to identify new brands for the same products based on different demographies.
If the idea of approaching existing consumers on the market and attracting them to buy a new and improved version of something they are already using, the market penetration can focus on identifying how many sales are currently generating. For example, manufacturers of a new window cleaner can generally look at the sale of windows cleaner and compare it with how many sales generate their current product. If the current product is purchased by thirty percent of consumers who buy window cleaner, the company will consider the remaining seventy percent as a potential buyer of the new product and focus their marketing campaigns in victory over these consumers.
Market penetration can be considered in a wider expression and to be used as a way of identifying a wider consumer base. If research suggests that one out of every four people living in specific urban computers of laptops, thenThe penetration of laptops in this city is considered twenty -five percent. This leaves seventy -five percent of the population as potential customers. Armed with this information, a computer notebook manufacturer will build advertising campaigns around ideas that will motivate those unused consumers to buy their products before they have a chance to consider competitors. Here it focuses on the selling of improved products on existing clients, but to extend the impact of product penetration on new consumers and thus increases the sale and general share of the consumer market that the manufacturer controls.