Driving Market Approach Essay Example

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Driving Market Approach


If Coles were in the process of driving the market for groceries, one would agree to the fact that he would be using driving market approaching (identify causes); to be more specific functional modification. This approach basically aims at changing the players in the market; that is, the functions performed in a given market; in this case the suppliers. Indeed, as a powerful buyer, there are able to dictate the behavior of the farms. As such, Coles are likely perceived to be building customer constraints (Jaworski et al. 2000). This seen through the fact that Coles are trying to sell groceries at the same price regardless of the sources .Therefore, potential consumers do not have a choice of buying grocery at a lower price. In another words, the customers do not have to choose goods according to prices (Zaltman 1996).

In addition, Coles is building a competitor constraint given that it is a powerful buyer, therefore creates a monopoly in the distribution of grocery in the market. Indeed, with the above, they are strengthening their influence in the market (Harrigan 1983). Still, one may argue that that they are shaping the market behavior indirectly by creating new customer preferences. This is may be attributed to the fact that they are trying to introduce new idea into the market in relation to cost of groceries. As such, they are trying to shape the perception of the product being offered in the market through social issues.


Harrigan, K 1983, End-game strategies for declining industries. Harvard Business Review. 61 (4): 111-121

Jaworski B, Kohli A & Sahay, A 2000, Market-driven versus driving markets. Journal of the Academy of Marketing Science 28: 45

Zaltman, G 1996, Rethinking market research; putting people back in. Journal of Marketing Research 34 (3): 424-437