What Is a Market Driver?
Last Updated Apr 7, 2020 6:38:19 AM ET
Market drivers are the underlying forces that compel consumers to purchase products and pay for services. These are trends that make markets develop and grow. The most common market drivers are consumer demand, government policy and demand.
Before a business takes its product or service to the market, it must first understand who exactly is likely to purchase it. This is known as the target market. An example of a market driver in terms of policy is the recent legalization of recreational marijuana in Colorado. Because it is legal in this state, it has led to a brand new industry of growers and sellers to meet the needs of consumer demand.
More From Reference
What Are the Age Limit Restrictions for IRA Contributions?
What Is an Ex-Dividend Date, and How Does It Affect Your Stocks?
What Is the Difference Between Salary and Wages?
How Many Minutes of Daylight Do We Gain Each Day? And Other Daylight Saving Time Facts
Understanding SSI: Supplemental Security Income Basics for New Applicants
What Can the History of Polio Teach Us About the Coronavirus Pandemic?