Market penetration is measured as the percentage of the target market that uses a specific product or service. It can be calculated by dividing the number of customers who purchase a product by the total size of the target market. For example, if a product has a market of 50 million people and 10 million have purchased it, the market penetration would be 20%. Market penetration strategies aim to increase a company's market share by lowering prices to attract more customers. This can lead to higher sales volumes and reduced production costs. However, these strategies also carry risks like damaging a company's brand image if not implemented carefully.