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Understanding the Customer Before You Sell Anything

Beginner Investing • 9 min

What this lesson is about

Marketing starts by finding out what someone is actually trying to get done, not by describing what you have built.

Key termshirePsychologicalsocialPersonalsituational

3 parts · a quick check after each · then the quiz

Part 1 of 3

Marketing, is, often, confused, with, advertising., They’re, not, the, same., Advertising, is, just, one, step, in, a, long, process., Marketing, involves, figuring, out, what, people, need,, creating, something, to, meet, those, needs,, and, delivering, it, at, a, price, they’ll, accept., Advertising, comes, later,, after, those, choices, are, made., No, amount, of, advertising, can, save, a, product, that, nobody, wants.

A, helpful, way, to, look, at, demand, is, to, remember, that, customers, don’t, just, buy, products;, they, hire, them, to, accomplish, a, task., Nobody, wants, a, drill;, they, want, a, hole., And, really,, they, want, a, shelf, on, the, wall., This, perspective, shifts, who, your, competition, is:, instead, of, just, other, drills,, it, includes, handymen,, different, fixing, systems,, and, even, giving, up., If, you, see, your, competition, as, “other, drill, companies,”, you’ll, miss, what, really, drives, your, customers, away.

The marketing mixPrice and promotion both move demand and both cost money.

Quick check

The clearest statement of the relationship between marketing and advertising is that advertising

Part 2 of 3

Buying, choices, are, influenced, by, more, than, just, price., Psychological, factors,, like, motivation, and, perception,, play, a, role., So, do, social, factors,, such, as, family, and, culture., Personal, factors,, including, age, and, income,, matter, too., And, then, there, are, situational, factors,, like, urgency, or, mood., The, same, person, will, buy, differently, on, a, laid-back, Saturday, compared, to, a, stressful, Tuesday.

The, buying, process, generally, goes, like, this:, problem, recognition, information, search, evaluating, alternatives, purchase,, and, post-purchase, evaluation., That, last, step, is, more, important, commercially, than, many, students, realize., It, affects, repeat, purchases, and, word, of, mouth., For, most, businesses,, keeping, an, existing, customer, costs, significantly, less, than, gaining, a, new, one.

Quick check

The jobs-to-be-done idea suggests that a customer buying a drill is really trying to obtain

Part 3 of 3

Insider, Angle:, When, a, scenario, asks, you, to, boost, a, struggling, product's, marketing,, the, usual, response, is, to, jump, straight, to, promotion., Advertise, more,, post, more,, offer, bigger, discounts., But, examiners, want, to, see, if, you, can, identify, that, the, issue, lies, earlier, in, the, process., If, customers, don’t, know, the, product, exists,, then, promotion, is, the, right, answer., If, they, know, about, it, but, aren’t, buying,, the, real, problems, may, be, in, the, offer,, the, price,, or, the, distribution., Just, throwing, money, at, advertising, won’t, help., Diagnose, the, broken, stage, before, you, prescribe, a, solution.
Try, This:, Think, about, the, last, thing, you, bought, for, over, $20., Write, down, the, job, you, hired, it, to, do., Then, list, three, completely, different, ways, you, could, have, accomplished, that, same, job., Those, three, options, represent, your, real, competition.

Quick check

The main strategic consequence of thinking in terms of jobs rather than products is that it

Quiz

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