Definition
Understanding Market Pull
Market Pull, also known as demand-pull, is an innovation strategy that emphasizes the role of customers or users in guiding the development of new products, services, or technologies. It is one of the two main types of innovation, the other being technology push, which is driven by technological advancements rather than customer demand.
How Market Pull Works
Market Pull begins with identifying a need or problem in the market, often through customer feedback, market research, or observation. The next step is developing a solution that addresses this need. This could involve modifying an existing product or creating a new one. The final step is introducing the solution to the market, and then refining it based on further customer feedback.
The Importance of Market Pull
Market Pull can lead to products and services that are more closely aligned with customer needs, potentially leading to higher customer satisfaction and loyalty. It can also reduce the risk of product failure, as products are developed based on identified needs rather than assumptions.
Usage Examples
1. The development of smartphones is an example of Market Pull. Consumers wanted a device that could combine the functionality of a phone, camera, and computer. This need led to the development of smartphones.
2. The rise of plant-based meat substitutes is another example. Increased awareness of environmental and health issues led to a demand for meat alternatives, prompting companies like Beyond Meat and Impossible Foods to develop plant-based substitutes.
Historical Context
The concept of Market Pull has been around since the 1960s, but it gained prominence in the 1980s and 1990s as companies began to recognize the importance of customer feedback in product development.
Misconceptions
- Market Pull is not about following trends, but about identifying and addressing genuine customer needs.
- Market Pull does not mean ignoring technological advancements. Successful companies often balance Market Pull and Technology Push.
Comparisons
- Market Pull vs Technology Push: While Market Pull is driven by customer needs, Technology Push is driven by technological advancements.
- Market Pull vs Supply Push: While Market Pull involves creating products based on customer needs, Supply Push involves creating products based on what a company can supply.
Related Concepts
- Technology Push
- Customer-Centric Innovation
- Product Development Process
