Customer

Businesses can be be market-led (customer focused) or product-led (usually high tech)

Market-led

Make-up counter in Boots
Make-up companies are often market-led businesses

Market-led businesses find out what the customer wants through intensive market research and then creates a product that will satisfy those wants. Market-led organisations are:

  • very customer focused
  • more responsive to changes in the market
  • reliant on market research to inform their product development
  • often in competitive markets such as make-up and clothing

Product-led

Product-led businesses develop a product first and then try to sell it to the customer through intensive advertising. Little or no market research is carried out before production begins, instead time and money is spent on researching and developing the product. Product-led businesses often operate:

  • in high tech industries
  • with little competition

Companies such as Apple or Tesla would operate as a product-led business.