The Market-Driven Approach
Business: Cambridge International GCSE (2027 Exams), topic 3.1.4
The Market-Driven Approach
It is important for businesses to identify and satisfy customer needs. Being market-driven means focusing on customers' needs, rather than building a product and then searching for people to buy it. This can let a firm:
Find the correct marketing mix
- Identifying customers’ needs lets a business know how their product can be designed to serve customers best.
- It also lets a company learn where customers shop, where to promote the product or service, which product/service to promote and what price customers are willing to buy a product/service.
Avoid costly mistakes
- Developing a new product or making adjustments to existing ones can need a lot of investment.
- Being market-driven and developing products that customers need or want can avoid costly errors.
Be competitive
- If a business satisfies a customer’s needs better than competitors do, then it is likely that a consumer will buy their product.
- So identifying and satisfying customers’ needs is even more important when competing with businesses selling similar products.
- Adapting to new customer needs is important for staying competitive as the business environment changes.
Test yourself on The Market-Driven Approach
Consumers stopped wanting to buy DVDs and started wanting to stream TV and films online. Who met customer needs best?