Market penetration index

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Market Penetration

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market penetration index Archives | Manet - Travel & Hospitality Blog

The market penetration index is the percentage of the total market that uses the type of product you sell. A market penetration analysis looks at the entire market to see how many potential customers can still be converted into using the type of product or service that you sell. This can help inform your overall marketing strategy so that you can tap into the motivations of your target audience. The market penetration index definition typically looks at the sector as a whole and isn't necessarily the percentage of the market that uses your particular brand or the amount of market revenue generated by your brand, which is your market share percentage. Instead, a market penetration analysis looks at the entire market for a particular type of product or service. However, market penetration can also be used as a company-specific metric to analyze the portion of the market that they've succeeded in converting to their product. Understanding market penetration can help inform a brand's marketing campaigns.
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Define the High Market Penetration Index

This is particularly helpful in showing how your business is doing in relation to your competition and the market in general. A great tool to be using when considering your pricing when in relation to occupancy rate against that of your competition. By calculating your MPI you are able to place yourself among the competition and make competitor-based pricing decisions from there.
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Is your hotel getting its fair market share? What is your market penetration index? Compare regional arrivals statistics with yours. Stats can be obtained from the airport, tourism boards. Are you getting your part or fair share of the pie?
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