Calculate market penetration index

Market penetration is a measure of how much a product or service is being used by customers compared to the total estimated market for that product or service. Market penetration can also be used in developing strategies employed to increase the market share of a particular product or service. Market penetration can be used to determine the size of the potential market. If the total market is large, new entrants to the industry might be encouraged that they can gain market share or a percentage of the total number of potential customers in the industry. The penetration numbers might indicate the potential for growth for cell phone makers. In other words, market penetration can be used to assess an industry as a whole to determine the potential for companies within the industry to gain market share or grow their revenue through sales.
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Define the High Market Penetration Index

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Define the High Market Penetration Index | Bizfluent

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How to Determine the Penetration Rate for a Business

There are many techniques for measuring the value of a company. Corporate success is quantified using parameters influenced by different aspects of performance. A company's market penetration is one of these numbers that offers useful information about the entity's past success.
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Market penetration is a crucial indicator as to whether your marketing and sales strategies are working. Market penetration is the percentage of identified potential customers you have acquired. Not meeting the desired penetration rate could be a strategic issue in marketing or sales, or it could be that you need to take the time with market development to expand the potential consumer base.
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