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Definition
There is a perfect customer base for any good or service. Your share of the whole market is represented by your current client base. Market penetration is the process of growing your company's market share by getting more and more customers to embrace your product.
Why is it useful?
Great products increase their market penetration by educating & changing mass behavior. This way total market increases, hence increasing their own product adoption & customer base.
Example
Designing platforms such as Adobe Suite is widely recognized by designers & filmmaker's groups. That means it dominates the market, by being the most penetrated in the market. Figma & Canva on the other side not only targeted this market but also served small & medium size business owners by simplifying their product.
