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The degree to which a product has saturated (or propagated within) a given market segment or target market. For example, a 40% market penetration would imply that approximately 40% of the target customers in a given segment have actually purchased the product at least once within a given time period. Related to but not equal to market share: market penetration measures the percentage of possible target customers who have actually purchased a product, while market share compares actual product revenue with the total possible revenue available for that product in a given market. For example, market share recognises the contribution of multiple purchases by the same customer, whereas market penetration generally does not.

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