The advantages of this concept include:
- the target customer group are better catered for
- they are more likely to choose your product over the competitor's variety
- you have spent more time researching and looking at what the customer wants and needs
- you have altered the product to suit these ideals and desires.
Researching customer needs and wants often involve market research, surveys and analyzing what the current market offers for that particular product you are offering. You then need to look at how you can present it/advertise it/ alter it to make it better than anything that currently exists in that area.
This may mean that not only does your revenue increase but also other aspects such as customer loyalty, brand image and status in the industry may all increase which would all be advantageous not only to the company in question but to that particular industry.
This is all part of the marketing concept and can be applied to all different types of company from a retail store selling clothes to an insurance company.