What is the term for a strategic approach to meet customer needs while maximizing profits?

The term for a strategic approach to meet customer needs while maximizing profits is value proposition. This concept focuses on the unique value that a product or service offers to customers, distinguishing it from competitors. It articulates how a business intends to satisfy the needs and desires of its target audience while also ensuring that the company can achieve profitability. A strong value proposition effectively communicates the benefits and value of what is offered, helping to attract and retain customers.

In the context of the other options, market segmentation refers to the process of dividing a broad target market into subsets of consumers with common needs or characteristics, which aids in more focused marketing efforts but does not directly encompass the strategy to meet needs while maximizing profits. Customer relationship management involves strategies and technologies that businesses use to manage interactions with customers, aiming to improve service and customer satisfaction, rather than directly focusing on profitability. Product diversification is a strategy that involves expanding a company’s product range, which can help reduce risk and target different market segments but doesn’t inherently address the alignment of customer needs with profit maximization in the same direct manner as a value proposition does.