customer

• market led businesses

  find out what the customer wants then create a product, found mainly in competitive markets
• advantages of market led businesses

  customer focused, responsive to changes in the market
• disadvantages of market led businesses

  reliant on market research to inform their product development
• product led businesses

  develop a product first then sell through intensive advertising, little to no market research is carried out beforehand, found mainly in technology industries with little competition
• why do businesses look at consumer behaviour?


  to understand influences and decisions behind purchases to tailor their marketing strategy
• types of consumer behaviour

  routine, informed, impulsive
• routine behaviour


  require little involvement by the customer, made automatically, promotions can influence this
• routine behaviour products


  cereal, detergent, toiletries
• informed behaviour


  time taken to investigate the product and compare to others, for long term goods
• informed behaviour products


  car, expensive technology
• impulsive behaviour


  occur without prior planning, happens when a product is eye catching with effective POS displays
• impulsive behaviour products


  gum, chocolate