Define market penetration

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Market penetration can mean two things. The first is a measurement. It compares the volume of products sold to the total target market, given as a percentage. These include advertising and promotional initiatives.
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Market Penetration Strategy

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What Is Market Penetration Strategy? (Definition and Examples)

If your SaaS startup is looking for low-risk business growth strategies, creating a market penetration strategy should be one of the first things you think about. Depending on where you look, the market penetration definition could be misleading, as there are two different meanings. As shown below, market penetration can be defined as either a measurement or an activity. In this article, we will review both market penetration definitions and how they relate to SaaS. Market penetration defined as a measurement is the assessment of how much a product is being sold relative to the total estimated market for that product, expressed as a percentage.
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What is Market Penetration?

Market or brand penetration is a measure of brand or category popularity. It is defined as the number of people who buy a specific brand or a category of goods at least once in a given period divided by the size of the relevant market population. Market penetration is one of the four growth strategies of the Product-Market Growth Matrix as defined by Igor Ansoff. It occurs when a company penetrates an existing market in which current or similar products already exist. Often, managers must decide whether to seek sales growth by acquiring existing category users from their competitors or by expanding the total population of category users, attracting new customers to the market.
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