What is 'Market Penetration'
Market penetration is a measure of the amount of sales or adoption of a product or service compared to the total theoretical market for that product or service. The amount of sales or adoption can be an individual company's sale or industry while the theoretical market can be the total population or an estimate of total potential consumers for the product.
BREAKING DOWN 'Market Penetration'
For example, if there are 300 million people in a country and 65 million of those people have cell phones then the market penetration of cell phones would be approximately 22%. This would mean in theory there are still 235 million more potential customers for cell phones, which may be a good sign of growth for cell phone makers. In general, the older the offering or industry, the greater the market penetration.

Early Adopter
An individual or business who uses a new product or technology ... 
Penetration Pricing
A marketing strategy used by firms to attract customers to a ... 
Late Majority
The last sizable segment of a population to adopt an innovative ... 
Protected Cell Company (PCC)
A corporate structure in which a single legal entity is comprised ... 
Early Majority
The first sizable segment of a population to adopt an innovative ... 
Market Share
The percentage of an industry or market's total sales that is ...

Economics
Explaining Market Penetration
Market penetration is the measure of how much a good or service is being used within a total potential market. 
Term
How Penetration Pricing Works
Penetration pricing unveils a new product or service at an initially low price to attract customers away from competitors. 
Economics
Understanding Market Research
Market research is the process a company uses to assess the viability of a new product or service. 
Budgeting
Best Ways To Use Your Cell Phone Overseas
8 tips to keep your phone costs under control while you travel abroad. 
Investing
Net Sales
Net Sales is an accounting term used to analyze a company's performance. It is the sales revenue that remains after deducting for product returns, damaged or missing products, and discounts. ... 
Investing News
Banks, Credit Card Companies May Track Your Phone (DFS, MA)
Banks and credit card companies have hit on a simple, effective way to know when a transaction is fraudulent: track customers' phones. 
Budgeting
How To Save On Your Cell Phone Bill
Mobile phones are now a way of life, but you shouldn't be paying more than $100 a month for your phone. Here are a host of ways to save. 
Investing
Total Debt to Total Assets
Total Debt to total assets, also called the debt ratio, is an accounting measurement that shows how much of a company’s assets are funded by borrowing. In business, borrowing is also called leverage. 
Economics
Understanding Marketing
Marketing includes all of the activities of a company associated with buying and selling a product or service. 
Investing
Return on Sales
Return on Sales is a financial ratio that is used to measure a company's performance. Specifically, it is Operating Profit divided by Net Sales. The result is a percent, such as 10%, that indicates ...

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