Calculate market penetration index

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. Here's how you determine your penetration rate. The penetration rate is easy to calculate if you know your target market size.
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How to Determine the Penetration Rate for a Business

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MPI - Market Penetration Index - Definition Glossary for Hotel Revenue Management Terminology

As anyone working in hotel management knows, getting this difficult balancing act right is difficult. By paying attention to the following metrics, you can effectively measure the performance of your hotel. To calculate your average daily rate, calculate your total room revenue over a day period and then divide it by the number of hotel rooms you have. Repeat this each month to track the trends in your averages. Calculating your average occupancy rate allows you to identify which months and seasons prove most popular. You can get this figure by dividing the number of rooms occupied by the total number of available rooms, and multiplying this by to achieve a percentage value.

Define the High Market Penetration Index

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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.
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