What is Share Penetration Index in Marketing?

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

Share Penetration Index Definition

  • A comparison of a company's current market share to its potential market share.

    Principles of Marketing by Philip T. Kotler, Gary Armstrong

Share Penetration Index Explanation

Market infiltration alludes to the segment of items sold in a specific classification or area by one organization in connection to all items sold by all organizations in that business. This is frequently identified with brand name acknowledgment, yet an organization with high showcase entrance may not really have solid brand name acknowledgment. Any market can by broke down utilizing market infiltration quantifiers. The "showcase infiltration list" is determined in various ways relying upon the application, and depends available entrance. Market infiltration, likewise alluded to as "piece of the overall industry," and the "advertise entrance list," are both determined utilizing basic proportion equations. Piece of the overall industry is essentially the complete number of items offered to shoppers by one organization isolated by the all out sold by all organizations. In the event that an organization sells one item out of a sum of 10 offered to general society, it has a market infiltration or piece of the overall industry of 10 percent. On account of the program wars, if Internet Explorer has a 67 percent market entrance, this implies roughly 66% of the considerable number of programs being used worldwide are Internet Explorer.

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