Market penetration
DefinitionBrand Strategy
Market penetration
The percentage of all category buyers who bought your brand at least once in a given period. Penetration, not loyalty, is what separates big brands from small ones: brands grow mainly by recruiting more buyers, most of them light buyers.
Evidence from the library
45%Only about 45% of marketers can correctly define penetration.StatMental Penetration x Network Size = Mental Market SharePrinciple-7ppMarket share and penetration effects - the two metrics most tied to long-term growth - have fallen faster than any other effectiveness measure.Stat21% vs 10.9%Challenger brands convert loyalty into profit more reliably than penetrationStatA famous brand grows at the fringes - new entrants, lapsed users, light buyersPrinciple
Source
Marketing Definitions
Byron Sharp, How Brands Grow (2010), Ehrenberg-Bass Institute
More from this source
DefinitionMental availabilityDefinitionPhysical availabilityDefinitionBrand salienceDefinitionCategory entry points (CEPs)DefinitionDistinctive brand assetsDefinitionBrand equityDefinitionBrand positioningDefinitionBrand architectureDefinitionBrand awarenessDefinitionMarket shareDefinitionFuture demand