Market penetration is the percentage of buyers you have as compared to the total households or businesses in the area you that you have selected as your market. Basically, market penetration is the ultimate goal of ones business. If, for example, a company sells cell phones in a country where there are 300 million people, and 65 million of them are using cell phones, then the market penetration of cell phones is 22%. That means that there are still 235 million of people who are potential buyers, and the cell phone industry has a greater chance to grow and spread. The total theoretical market for this industry would be 235 millions of people. However, the older an industry is the greater the market penetration is. There are several tactics for market penetration. One of the tactics is aggressive pricing. This means that in a market of great competitors a company is able to lower their price of a product. In that way it maintains a decent level of earnings, and once it attracts customer it is able to increase prices. Another tactic for market penetration is aggressive marketing campaigns. This is done through placing your add everywhere one can. On TV, Radio stations, trough direct mail etc. A company can due this in a physical way as well. For example, you can se a Starbucks on every corner. That is a strategy of aggressive marketing campaign.