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NEEDS ,WANTS AND DEMAND

Presented by
Ravi Sonakia Roll no 7
Prateek Sharma Roll no 19
NEEDS

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


satisfy.
PRIMARY NEEDS
 food, clothing and shelter no one can live life in this world.
 Food: It’s a basic vital requirement for human being.
 Clothing: Its required to protect our body from natural elements.
 Shelter: Habitat of human needs shelter
SECONDARY NEEDS
 The extended form of needs are health and education which for sure
every on basic need in today’s world but they come after food, clothes
and shelter.
 Marketers play no role in creating needs, they are natural default
requirements of every human being.
MASLOW’S HEIRARCHY OF NEEDS
TYPES OF NEEDS (ACCORDING PHILIP
KOTLER AND KEVIN LANE KELLER.
MARKETING MANAGEMENT,
TWELFTH EDITION
 1. Stated needs (the customer wants an inexpensive car).
 2. Real needs (the customer wants a car who operating cost, not its initial
price, is low).
 3. Unstated needs (the customer expects good service from the dealer).
CONT…
 4. Delight needs (the customer would like the dealer to include an
onboard navigation system).
 5. Secret needs (the customer wants to be seen by friends as a savvy
consumer).
DO MARKETERS CREATE NEEDS?
 No, marketing does not create needs.
 Marketing’s 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.
WANTS
 Wants are the form human needs take as they are shaped by culture and
individual personality.
 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
 Whilst customer needs are broad, customer wants are usually quite
narrow.
 Wants are marketed by marketers in such a way that everyone feel these
wants should be mandatory part of life.
 Need- something you have to have
Want -something you would like to have
 Our needs are relatively few, even from birth.
CONTD
 Consumers typically accept the costs associated with filling needs as
inescapable, even though they may complain about high prices, low
quality or poor service.
 When filling their wants, however, they become more demanding, and
tend to shop around, analyzing the benefits of purchasing from one
supplier versus another.
 Branding becomes critical at that juncture, in order to establish an
advantage over the competition.
NEEDS V/S WANTS IN CONTEXT OF
SAVING
 Spend Your Money on Doing Things Rather Than Owning Things
 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.
 Spendthrifts are confused psychologically between “Needs” and
“Wants”.
DEMAND
 Demand is want backed by buying power.
 Not all wants translate to Demand as resources are limited.
 It is more important that the marketer determine if a demand exists,
rather than a need.
 Some marketers attempt to create a demand, by creating the perception
of a need.
DEMAND STATES AND MARKETING
TASKS
 Negative Demand → Counter Marketing
 No Demand → Stimulus
 Latent Demand → Developing
 Declining Demand → Remarketing
 Irregular Demand → Synchromarketing
 Full Demand → Maintain Marketing
 Overfull Demand → Demarketing
 Unwholesome Demand → Social Marketing
NEED, WANT & DEMAND: AN
ECONOMIC PERSPECTIVE
SUMMARY
 Needs: the basic human requirements.
 Wants: when needs are directed to specific objects that might satisfy the
need.
 Demands: wants for specific products backed by an ability to pay.

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