There are many techniques for measuring the value of a company. Corporate success is quantified using parameters influenced by different aspects of performance. A company's market penetration is one of these numbers that offers useful information about the entity's past success. But market penetration also provides clues about potential future success. The mathematics behind market analysis can be quite complex, but the concept is relatively simple.
How to Determine the Penetration Rate for a Business | augaipecheur.com
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.
Is your hotel getting it's fair market share? What is your market penetration index? Compare regional arrivals statistics with yours.
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.