market penetration

/ˈmɑːrkɪt pɛnɪˈtreɪʃən/
noun phraseIntermediate
formal

The percentage of a target market that uses a particular product or service

Market penetration is a key metric for evaluating product success.

The percentage of the target market using the product indicates its success.

High market penetration often leads to economies of scale.

When many customers adopt a product, production costs decrease.

💡

Market penetration is often expressed as a percentage of the total potential market.

Collocations

increase market penetrationto expand the product's adoptionlow market penetrationlimited adoption of a productmarket penetration strategya plan to increase product adoption

Synonyms

Antonyms

Related Phrases

market saturationphrase
when a product has reached its maximum possible market penetration
market expansionphrase
increasing the size of the market for a product

💡Pro Tip

Market Penetration vs. Market Share

Market penetration measures the percentage of a specific market using a product, while market share compares a company's sales to total industry sales.

Gold Rule

Key Metric

Market penetration is a critical indicator of a product's success in a given market.

📖Word Origin

Combination of 'market' (a place for buying/selling) and 'penetration' (the act of entering or spreading into).

📝Usage Notes

Market penetration is a key metric in business and marketing, often used to assess competitive positioning.

Word Breakdown

market
the group of potential customers for a product
root
+
penetration
the act of entering or spreading into
root
English Dictionary