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Should I show off my knowledge of the company?

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While it is important to use your knowledge of a company to show how you are a good match, you do not want to talk just about them. The cover letter should focus on your ability to meet a company's needs. For example:

American Advertising is committed to providing its clients with superior customer satisfaction and one-on-one collaboration. My experience shows that I can work with people from different backgrounds and cultures: I know how to put customer satisfaction first.