Writing

Knowing About Market Penetration

GL Content Team Oct 06, 2015

In the marketing sphere, it is often necessary to keep your fingers in many pies, so to speak, in order to maintain a competitive edge. When marketing a new product, it is of utmost importance to keep a close eye on your market penetration statistics. Market penetration, in a nutshell, refers to the extent to which a product or service is being purchased by customers in the current market. As one would imagine, the market penetration figures for a new product can give a real-world representation of the efficacy of a company’s marketing strategy as a whole. The more convincing you’ve been, the higher the number tends to be.

There are a number of strategies that exist to increase your market penetration, such as dropping the price of your product, bumping up the number of promotional schemes and encouraging non-users to take the plunge and try something new.

All in all, the market penetration figures for a product or service will give you a very clear impression of its popularity, and by extension can validate an entire marketing strategy. It gives a solid impression of the initial and ongoing impact your strategies are having on customers and as such, should be regularly monitored.