Customers

Question 1

Compare market led and product led

Answer 1

Market led businesses develop products based on customer wants whereas product led businesses produce products that they believe customers will want and try to convince them to buy them.

Market led businesses carry out high levels of market research to determine customer wants whereas product led businesses don’t see market research is not seen as important. There are, however, high levels of product research and development.

Market led businesses often exist in highly competitive markets whereas product led products, such as new technologies, often have little to no competition.

A market led business will have a marketing mix that is responsive to changes in external factors and consumer behaviour whereas often product led products are unresponsive to changing external factors.