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.
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