How important is it for businesses to understand “Consumer behaviour”?

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Why people want what they want and why do they buy what they buy? Consumer behaviour allows such insights into consumers’ psychology. Businesses need to understand what motivates people to behave a certain way before designing their marketing plans and strategies. Your product could be unique and breakthrough in solving a problem and your consumer might want the product but do they actually purchase the product because it is the sale that affects the bottom line of your business.

Consumer behaviour goes beyond the cost and profit analysis. The focus is on individual consumer to understand the following:

What are the values, beliefs and attitudes of our target market? How do they perceive our product and identify themselves with the product? Is it a means for them to seek social validation, a status symbol, something that makes them feel good about themselves and flatter their ego, something that makes their family and children happier or just that all their friends have it and they think it is cool to have it too. What is the cultural background of our consumers? For instance self-enhancement is prevalent in individualistic Western society as compared to Japanese culture that values Collectivism.

Successful companies like Nestle understand the importance of Consumer Behaviour. Say they want to launch their coffee in Japan. They would first spend resources on understanding the Japanese values, cultures and motivations to carve a marketing and advertising communication plan: Tea time is almost a ceremony in Japan and how music, traditional clothing form an integral part of people's life.

Great features and benefits are not enough to make that sale. If you share that relationship with the consumers they would want to make your product an irresistible part of their life.This allows companies to become brands that can earn customer loyalty and a premium. Building this relationship is just like personal relationships where a couple puts in their best effort to understand each other. Therefore it is recommended that businesses allocate resources in conducting focus groups, in depth interviewing, observing consumers in different settings etc, to understand the underlying motivations of consumers.

There is Nothing like an INSTANT CEO - The Art & Science of Leadership as told by a C-Level Executive

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There is nothing like an Instant CEO and there is no better way of learning the Leadership Mantras but from a highly successful leader sharing his real life experiences.

Recently Sauder School of Business at UBC had the honour of welcoming Mr. Martin Glynn who was the Chief Executive Officer of HSBC Bank USA, the Chairman of HSBC Bank Canada and a Board of Director at various organizations. He shared an experience of how he dared to take a career risk which others almost saw as a demotion but which happened to be the biggest milestone in his career.

RECIPE OF TRUE LEADERSHIP as told by Mr. Glynn to the MBA students is:

1. See the end game - Have a clear vision and paint a simple picture for the employees
2. All about Motivation
3. Emotion and Passion - believe in what you do
4. Focus
5. Recognition of others and paying attention to people
6. Get Hands-on experience so you can relate to the employees
7. Study successful leaders and emulate them
8. Create a culture in the organization
9. Offer Non-financial rewards and recognition to the employees
10. Challenge people - Mr. Glynn shared a story of how his style is to often take the opposite view and be a skeptic
11. Stay on top of the no.s
12. Keep it simple and logical for the common man - not too technical
13. Continuously measure people, set targets and finally..Pick your employers wisely

And there is more..............

1. Activate your leadership by constantly acquiring tools and skill sets
2. Do not stay in a silo, explore different roles to learn and become well rounded
3. Read newspapers, be aware of the world issues and build your knowledge
4. Gain the experience - there is nothing such as an instant CEO
5. Build your credibility
6. Meritocracy - Be known and recognized for your merits and not as the niece of the President or so
7. Beat your own targets
8. Work hard and gain respect
9. Relationship Building - network, participate as a community member, show loyalty
10. Develop a personality of your own
11. Character and Integrity
12. Communication skills

Great insights and years and years of experience in these few bullet points. It's like the whole Universe of Leadership squeezed into a formula that should be practiced and inculcated day in day out by ambitious, future leaders like us.

Your comments are most welcome.