Understanding Consumers' Behavior

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1) How can understanding consumers' behavior help companies sell products or services in today's market? Please cite an example from our text or from our YouTube videos and use a personal example. As Steve Jobs states in the YouTube video, all marketing decisions revolve around your customer. Marketing is all about building profitable customer relationships by creating value for customers and capturing value in return in the form of profits. To effectively sell a product/service, understanding how your customers buy your products and services will help you determine when, how and where you should market your products/services and in turn help you grow your business by responding to their needs. Also, if you know what customers buy and how they go about buying particular products, you can more easily spot a need that has not yet been satisfied. For example, if you run a technology company and notice that many of your customers buy educational software from college bookstores, you may recognize that your customers could use a place to buy and automatically download educational software online. Steve Jobs states in the YouTube video “Give her not what she wants but give her something that she has never dreamt of, and when she gets it she recognizes it as something she wanted all the time”. A very simple example is that of ITunes, which was discovered 10 years ago. Steve Jobs noticed that music fans clearly wanted to download songs they liked in an affordable and easy way rather than driving to Best Buy or some record store to buy them on $15-to-$18 CDs. Jobs took advantage of this opportunity and came out with the iTunes Music Store, which is today the top most online music retailer, and synced it perfectly with a piece of hardware: the iPod. This eliminated the use of Walkman’s, MP3 Players and CD players. Thus, it is important to understand people’s motives (what drives them to buy), and their attitudes (how they feel about a product/service). Knowledge about...
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