To calculate the Market Penetration (P):
\[ P = \left( \frac{C}{T} \right) \times 100 \]
Where:
Market penetration is a metric used to measure the extent to which a product or service is being used by customers compared to the total estimated market for that product or service. It is often expressed as a percentage and is calculated by dividing the number of customers acquired by the total potential customers and then multiplying by 100. Market penetration helps businesses understand their market share and the effectiveness of their marketing strategies. A higher market penetration indicates a larger share of the market and greater acceptance of the product or service.
Let's assume the following values:
Using the formula:
\[ P = \left( \frac{500}{10000} \right) \times 100 = 5\% \]
The Market Penetration is 5%.
Let's assume the following values:
Using the formula:
\[ P = \left( \frac{750}{15000} \right) \times 100 = 5\% \]
The Market Penetration is 5%.
