Is your company’s strategy driven by the needs of the market you serve?
Today we will discuss this topic of strategy to help you determine what is guiding you in the decisions you make for the future of your firm.
Market Needs Defined
A market is a group of buyers or end users who share common needs. This group can be past, current, or potential customers. Markets are grouped on the basis of common traits such as: age, income, sex, industry, ethnic background, education, occupation, etc. These groups also can be formed or limited by geography.
Market Needs as the Driving Force
Firms whose strategy is driven by Market Needs provide products that are needed to fill current and upcoming needs of the customer base and or market segments they serve. These companies will constantly be looking for new needs to fill within the market it serves. Any new products will be offered because they fill the needs or desires of this target market.
Growth for the Market Driven firm comes first from increasing the breadth of products offered to the customers in its current market segments. Other options for growth are new geographies and market segments that have needs and wants similar to existing markets. Significant efforts will be directed toward needs analysis and market research. Rapid development of new product offerings based on these needs is critical to remaining near the top of the marketplace.
It would be a common error to confuse “Market Needs” with the typical functions of marketing. Many firms place an emphasis on the marketing (communications) functions of advertising, promotion, and market research. This does NOT necessarily mean that the firm is Market Driven. Marketing is important in all companies, regardless of the driving force behind their strategy. In a Market Driven firm, the needs of the market determine the products and services offered to said market.
This is the third in a series of posts about company strategy. The next will discuss the Technology as the Driving Force.
Check here for initial post of this series, “What is Driving Your Company?”
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Originally posted 2013-11-19 06:00:15. Republished by Blog Post Promoter