NEEDS ,WANTS AND DEMANDPresented by Ravi Sonakia Roll no 7 Prateek Sharma Roll no 19

NEEDS

f Definition: A need is a basic requirement that an individual wishes to

satisfy.

PRIMARY NEEDSf food, clothing and shelter no one can live life in this world. f Food: Its a basic vital requirement for human being. f Clothing: Its required to protect our body from natural elements. f Shelter: Habitat of human needs shelter

SECONDARY NEEDSf The extended form of needs are health and education which for sure

every on basic need in todays world but they come after food, clothes and shelter.f Marketers play no role in creating needs, they are natural default

requirements of every human being.

MASLOWS HEIRARCHY OF NEEDS

TYPES OF NEEDS (ACCORDING PHILIP KOTLER AND KEVIN LANE KELLER. MARKETING MANAGEMENT, TWELFTH EDITIONf 1. Stated needs (the customer wants an inexpensive car). f 2. Real needs (the customer wants a car who operating cost, not its initial

price, is low).f 3. Unstated needs (the customer expects good service from the dealer).

CONTf 4. Delight needs (the customer would like the dealer to include an

onboard navigation system).f 5. Secret needs (the customer wants to be seen by friends as a savvy

consumer).

DO MARKETERS CREATE NEEDS?f No, marketing does not create needs. f Marketings role in all of this is to look for places where there is a gap

between what people need and the types of products and services available.

WANTSf Wants are the form human needs take as they are shaped by culture

and individual personality.

f For Example,

Any person can eat food to feed himself, but he want to eat fast food, fried rice and Chinese food. Cloths are required for a person to cover himself but we can see people wearing jeans, suit just because of culture influence.

NEEDS V/S WANTS

f Whilst customer needs are broad, customer wants are usually quite

narrow.f Wants are marketed by marketers in such a way that everyone feel

these wants should be mandatory part of life.f Need- something you have to have

Want -something you would like to havef Our needs are relatively few, even from birth.

CONTDf Consumers typically accept the costs associated with filling needs as

inescapable, even though they may complain about high prices, low quality or poor service.f When filling their wants, however, they become more demanding, and

tend to shop around, analyzing the benefits of purchasing from one supplier versus another.f Branding becomes critical at that juncture, in order to establish an

advantage over the competition.

NEEDS V/S WANTS IN CONTEXT OF SAVINGf Spend Your Money on Doing Things Rather Than Owning

Thingsf In fact, a recent study at the University of California at Berkeley found

that people primarily motivated by the love of their work grow dissatisfied as they begin to make more money.f Spendthrifts are confused psychologically between Needs and

Wants.

DEMANDf Demand is want backed by buying power. f Not all wants translate to Demand as resources are limited. f It is more important that the marketer determine if a demand exists,

rather than a need.f Some marketers attempt to create a demand, by creating the perception

of a need.

DEMAND STATES AND MARKETING TASKSf Negative Demand f No Demand f Latent Demand f Declining Demand f Irregular Demand f Full Demand f Overfull Demand

Counter Marketing Developing Remarketing Synchromarketing Demarketing Social Marketing

Stimulus

Maintain Marketing

f Unwholesome Demand

NEED, WANT & DEMAND: AN ECONOMIC PERSPECTIVE

SUMMARYf Needs: the basic human requirements. f Wants: when needs are directed to specific objects that might satisfy

the need.f Demands: wants for specific products backed by an ability to pay.