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.