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Market Penetration Index Definition and Explanation PDF Download

Learn Market Penetration Index definition in marketing with explanation to study “What is Market Penetration Index”. Study market penetration index explanation with marketing terms to review marketing course for online MBA programs.

Market Penetration Index Definition:

  • A comparison of the current level of market demand to the potential demand level.

    Principles of Marketing by Philip T. Kotler, Gary Armstrong



Market Penetration Index Explanation:

Market potential is the whole size of the market for an item at a particular time. It speaks to the maximum furthest reaches of the market for an item. Market potential is generally estimated either by deals worth or deals volume. For instance, the market potential for ten speed bikes might be worth $5,000,000 in deals every year. Then again, the market potential for cruisers might be 500,000 units every year, which is a proportion of offers volume as opposed to deals esteem. Remember that market potential is only a preview in time. It's a liquid number that changes with the financial condition. For instance, rising and falling loan costs will influence the interest for items that are regularly financed, similar to vehicles and houses.

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