Compendium admissions 2023-25
Needs, Wants, and Demands
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| Needs, Wants, and Demands Often during our conversations, we use these terms interchangeably, however, in the world of marketing they have their meanings distinct. Needs Needs are something that is fundamental requirements. They can never be created. Let’s say the need for food, warmth, or shelter. Needs themselves can be classified into various types using Maslow’s Hierarchy. As per this hierarchy, certain needs are more fundamental than others. As a marketer one needs to be aware of which need their company’s product offering caters to (e.g., Esteem needs- iPhone or Safety needs- HDFC Life. How do these needs decide by an individual’s unique motivations, assumptions, beliefs, and biases translate to their perception of a product offering Here too, we can classify needs into the following • Stated need What the customer asks for • Real need What value the customer wants to derive • Unstated need What the customers expect implicitly from the offering • Unexpected need What might delight the customer if provided, as these are not expected • Secret need Another unexpected need that might boost the perception of the customer 54 Wants Wants area satisfier of a need dictated by a person’s preference or choice. This preference can in turn be dictated by a myriad of factors, primarily among them being their cultural and socioeconomic background, as well as individual nuances. Wants aren’t essential but have quite a bit of flexibility associated with them. As an example, if you were to go from Point A to Point B your first choice might be a bicycle in the Netherlands while it might be a car in the USA. Demands A demand is a satisfier of a want backed by purchasing power and a willingness to buy. A person needs nourishment, wants a burger, and demands a McDonald’s Big Mac. Only if they can pay for it. If affordability comes into question, then a want might never transition to demand but remain a desire. One must be aware of the fact that customers view products as a bundle of utilities and demand the one which they believe will satisfy them the most. Download 4.08 Mb. Share with your friends:
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