Driving Markets

from Wikipedia, the free encyclopedia

Market-Driven and Driving Markets are two ways of looking at the market.

With market-driven , the company adapts to changing customer needs, environmental and market conditions. It is therefore responding to customer needs from existing markets. It is also said here that companies hear the voice of the market. As a result, with this approach, products and services are placed on the market that meet existing customer needs and / or can be understood as a reaction to the activity of the competition . As a rule, these products and services have a low degree of novelty.

Driving Markets is the counterpart to this. It is still a very young research approach. Here strategies and activities are implemented that aim to proactively change customer needs or customer behavior and / or the market structure. In short, the structure of the market and customer behavior is influenced. The aim is to change the rules of the game to your own advantage. The primary means of achieving this goal are radical innovations at the product, process, marketing or business level. Typical examples of market driving companies are Starbucks , Puma AG and IKEA .

literature

  • Bernad Jaworski, Ajay Kohli, Arvind Sahay Market-Driven versus Driving Markets , Journal of the Academy of Marketing Science, 28, 2000