market penetration


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Related to market penetration: Market development, market penetration pricing

Market Penetration/Share

The percentage of an industry or sector that a single company controls. For example, if Retail Company A conducts 10% of all retail sales in the United States, it is said to have a 10% market share or penetration. It is important that a company, especially a large company, maintains a substantial market share in order to remain competitive. However, companies that achieve too high a market share through mergers, acquisitions, or other methods may become regarded as monopolies and violate local antitrust laws. Some companies have a large market share compared to their competitors, but not enough to be considered a monopoly: these are called gorillas. See also: Herfindahl-Hirschman Index.

market penetration

a BUSINESS STRATEGY pursued by a firm which is aimed at increasing the sales of the firm's existing products in its present markets thereby increasing its MARKET SHARE in those markets. This strategy involves the deployment of various MARKETING MIX elements (pricing, advertising etc.), together with appropriate MARKET SEGMENTATION policies aimed at competing more aggressively against rival suppliers. See PRODUCT MARKET MATRIX, MARKET PENETRATION PRICING, CONCENTRATED MARKETING STRATEGY.
References in periodicals archive ?
In order to test the applicability of the CWT algorithm under low market penetration rate, a varying C/AV rate from 10% to 100% is applied in the test network.
Now that we've reached full attainable market penetration in the commercial and industrial fluorescent lighting market in Vermont, and have achieved nearly 300,000 MWh in total commercial lighting energy savings between 2000 and 2014, we're asking, what's next?
The organization estimated many CCFL-module makers may phase out of backlight market in 2012 in response to growing market penetration of LED backlights.
In the new account opening fraud arena, Fidelity Information Services has the highest market penetration, with 15 of the 23 institutions surveyed claiming to use FIS, Holland said.
Market penetration of personal computers is below 15 percent in the Caribbean.
"Jeff's effort, along with his team, has made a significant impact for AcuSport's market penetration in this area of the country," said Kenan Ikels, AcuSport director of sales and marketing.
* THE LONG-TERM-CARE market may finally be turning the corner toward a brighter future, a panel of observers said, but changes in both policy options and governmental incentives remain desperately needed if insurers are to build on the product's meager 8% market penetration.
However, none of those OPP bottle technologies achieved the hoped-for market penetration on a broad scale.
and European clients on diverse forms of market penetration in the Latin American region; assisting them in the implementation of business strategies, establishment of local operations, obtaining relevant operation permits and concessions, and with corporate compliance related issues."
The combined market strengths, in diversified geographic areas, opens substantial cross-selling and market penetration opportunities.
There are many benefits to bartering, such as conserving cash by receiving needed goods and services without monetary exchanges and the potential to increase market penetration in new areas while maintaining cash customers.
Multiply that by five, which is the estimated rate of pass-alongs and illegal photocopying (the American Legion post is a culprit on that count), and that's not a bad market penetration.