Market penetration is a business strategy aimed at increasing a company's share of existing markets. This involves selling more of the same products or services to current customers or attracting new customers within the same market. Companies often use tactics like competitive pricing, promotions, and improved customer service to achieve this goal. To measure market penetration, businesses often look at the percentage of potential customers who are buying their products compared to the total market size. A higher penetration rate indicates a stronger presence in the market, which can lead to increased sales and profitability over time.