what is market pull

Market pull refers to the need or requirement for a new product or solution to a problem that comes from the market place. The need is identified by potential customers or market research, and a product or range of products are developed to solve the original need. Market pull sometimes starts with potential customers asking for improvements to existing products, and focus groups are often central to this when testing a concept design or an existing product. Market pull is a forward-thinking organizational orientation that emphasizes the ability to learn and respond quickly to customers wants and needs. This approach attempts to ensure that products, services, and strategies meet customer desires while maximizing profits. In contrast to technology push, which values developing new technologies over market research, market pull places greater value on understanding customer needs and deeply researching the potential of existing technologies. To successfully adopt a market pull orientation, organizations must first cultivate an understanding of their customers and the competitive landscape. Strategies like price flexibility, bundle pricing, product customization, quality assurance, and service differentiation are all ways an organization can take advantage of market pull principles when applicable. Market pull is favorable for a variety of reasons, and it is assumed that an extreme market pull position is not being sought or proposed, but rather a general, mild movement along the continuum in that direction.