Understanding consumer and market

madugundurukmini By madugundurukmini, 27th Feb 2013 | Follow this author | RSS Feed | Short URL http://nut.bz/1fqcyli6/
Posted in Wikinut>Business>Selling A Business

Unless the produced items are sold at profitable rates the business will incur losses and a stage will arrive, when it will have to be closed down. Therefore, it is quite essential to understand the consumer and the market because finally it is the consumer (buyer who buy for his own needs) who purchases different items available in the market.

Understanding the consumer behavior

There being several manufactures or traders who produce or sell similar items in the market, consumer gets the opportunity of making selection. A wise consumer will, while buying anything, consider the following-

a) quality of the product
b) cost
c) after sale service and guarantee

understanding the consumer behavior
consumer is perhaps the most important person for a producer, manufacturer, businessman or a trader. After all these success of failure of a business enterprises depends on the consumer's response to the product.

what consumer needs

Several important considerations are to be taken into account to understand the consumer since he is the focal point all business actives. Some of these are as under- what consumer needs-the first and foremost consideration should be the requirement of the consumer. It is only when the consumer feels absence of or need for a particular item that the manufacturers get engaged in the production of the same. While determining the need one has to consider the following-

1) quality of the product which the consumer would like to have or expect.
2) Reasonable price range
3) what improvements the consumer will like to have in a product already available in the market.

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author avatar Sivaramakrishnan A
27th Feb 2013 (#)

I know of one exception to this rule and that is Steve Jobs and Apple. Jobs was of the view that consumer may not be aware what he wants and he came up with multiple winners - but others have started to harvest the fruits of his endeavor like Samsung etc - siva

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