Measuring Marketing

Chapter 13 Market Penetration

Measurement Need

To understand the company’s efforts to increase sales via market share growth (i.e., more customers in a given time period) and/or increased usage of its products and services (i.e., more sales to existing customers in a given time period) compared to total market sales volume of comparable offerings in that same period of time.

Solutioni

Market penetration measures the sales volume of the company’s products to a target segment relative to the total target market sales for a defined period of time.

$M_p=\frac{S_i}{T_i}\times 100$

Where

Mp = market penetration

Si = sales to target segment in time i

Ti = total market sales in time i

Target segment is a predefined target customer group in a specific ...