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NEEDS, WANTS AND DEMANDS

Marketing comprises many elements and concepts. Let's brush our concepts with some
primary yet most important parts of it. Have a glance towards Needs, Wants and Demands of
a consumer along its relevance in the dynamic business world.

Introduction

Needs, wants and demands are an element of basic marketing principles. Though they're
three simple words, they hold a really complex meaning behind them together with an
enormous differentiation factor. In fact, a product will be differentiated on the premise of
whether it satisfies customer’s needs, wants or demands. This classification helps us to
understand the basic concept of economics which is the foundation of marketing and
consumer analytics. The purchase depends upon these three factors and thus every decision
from advertisement, pricing, availability to manufacturing happens according to this.

So, let's talk about needs.

What are the needs?

Why are they classified as needs?
As we all know that needs are important and are needed for our survival.
Needs are the essential requirement of any creature. Without them, humans cannot survive.
Needs aren't created by marketers because it already exists in nature. Human needs are
states of felt deprivation. Human needs are classified into 5 parameters. We can understand
this by Maslow’s hierarchy of needs which depict a flowchart of pyramids depicting various
needs and their sequence accordingly in a five-tier model.

This theory extends the idea to comprehensive human innate curiosity into an idea which
simplifies and portrays the idea so well. Ranging from the last pyramid to the first the order
is the priority of needs.

Navdeep Yadav
Complete MBA course: Marketing and business Strategy
1. Physiological needs – The most basic needs needed for a human to survive which are
needed to survive. In simpler words the biological requirements for a human are air , food
,water, shelter , food , sex and sleep. If the mentioned needs are not fulfilled the human
body cannot function normally and this is considered the most important and primitive
need of humans by Maslow.

2. Safety needs – Once a human being satisfies his most important physiological needs
then he heads to safety needs which now becomes mandatory. Everyone needs a sense
of security in his life which enables them to experience order and control in their lives.
These needs are fulfilled by different elements of society. For a better understanding let's
take an example. Schools and colleges fulfil a person's career safety needs and offices and
organisations fulfil a person’s financial security need by providing financial aid for your
life. Employers also provide pension, medical insurance for dependants and provident
fund which adds up to these needs.

3. Love and belongingness needs – When a person satisfies his safety needs also now,
he wants to satisfy his emotional needs by which he feels connected to society and never
feel isolated or alienated. He wants to comply with his different relationship so that he
can experience love, trust, care, friendship, intimacy, affection and acceptance which
involves acceptance and receival of feelings.

4. Esteem needs – On the 4th priority lies our esteem needs which includes self-worth,
accomplishment and self-respect and it has been further classified into two sects which
are esteem for oneself including dignity, proclamations, mastering in something and self-
independence and secondly is the desire of respect and reputation from others which
means prestige and societal status.

5. Self-actualization needs – This is the highest level of needs in Maslow’s hierarchy of

needs and these needs actually refer to realization of an individual's potential, self-
fulfilment personal growth and pinnacle moments. Maslow describes the pinnacle need
as the ultimate desire of an individual whatever he aspires to achieve and become.

Navdeep Yadav
Complete MBA course: Marketing and business Strategy
Wants are the desires which aren't necessary for survival.

Marketers play a very important role in creating demand for wants by customizing needs.
Culture and private preference supported experience shape a person’s wants. A want is
largely shaped by a person’s society and described in terms of objects that satisfy their needs.
They want to create demand and make their product or service so important that we are
always inclined to buy their product.

What do humans really want?

and, Will these wants be satisfied or are human wants endless?

While these questions could be vague for some, we really need to study the economic wants
of humans in economics. It helps us explain consumer behaviour and successively demand
and supply. allow us to require a look at the character and classification of human wants.
Nature of Human Wants All the desires and aspirations and motives of humans are stated as
human wants in economics. and thus, the requirements which are able to be satisfied with
goods and services of any kind are economic wants. Take an example: food, shelter, clothing,
etc are economic human wants which are important. and other people which may not be
bought are non-economic wants like peace, love, affection, etc. All humans want to possess
some basic common characteristics. allow us to own a look at the similar nature of human
wants. Wants are unlimited. an individual is never truly satisfied, so his wants are endless. We
may temporarily satisfy a variety of our wants but they always reoccur. Different wants have
varying degrees of intensity. Some wants are extremely urgent in nature and some are less
urgent and can be delayed further . Human wants tend to be competitive. we've limited
means so we cannot satisfy all of our wants. so that they compete with each other. and also
the foremost urgent want is visiting to be satisfied. Wants is complementary additionally. To
satisfy our want for one good we have to create arrangements for yet one more. So now we
have got the want of two goods. As an example, to run a car you would like petrol. The wants
of somebody will constantly be changing per the time and place and situation of the person.
Over time, the wants of somebody can become his habits or customs.

Navdeep Yadav
Complete MBA course: Marketing and business Strategy
Classification of Human Wants We can sect wants into three broad categories in economics.
These are Necessaries, Comforts, and Luxuries. allow us to require a look at the smallest
amount bit three.

1] Necessaries - These are the mentioned human wants that are absolutely essential for
living and surviving. Further necessaries will divide into necessaries for all times, for efficiency
and finally conventional necessity. These include food, water, clothing, shelter, etc. And then
there are necessities that improve our efficiency and well-being which arise out of habits,
customs or conventions of individuals.

2] Comforts - These are the wants which are extra in nature for the human after necessaries.
they don't seem to be as essential or urgent as necessary. Comforts are the wants that make
the lifetime of the human comfortable and satisfying. Generally, these include items that help
to save labour on behalf of the human or provide extra comfort to him in his life, eg – maid
cook helper nanny. So, items like fans, furnished houses, special clothing for occasions, etc
constitute this category of human wants.

3] Luxuries - These are goods that give humans an edge and societal status in their society.
They don't seem to be needed for existence or comfort but provide happiness and acceptance
within the planet. These wants could even be called superfluous. And such items tend to be
expensive. Some examples of luxuries are cars, diamond jewellery, expensive designer
clothing, ACs. As you'll notice, those items aren't essential to our living. they're items of
prestige.

Navdeep Yadav
Complete MBA course: Marketing and business Strategy
Demands are human wants backed by ability and willingness to shop for. The person wants
only those goods which give them maximum satisfaction. Marketers also can influence
demand by offering products at different prices and quality. Willingness to shop for BMW may
be a want but if you have got the buying power then it becomes a requirement.

What is Demand?

Demand is an economic principle concerning a consumer's desire to get goods and services
and desire to pay a price for a selected good or service. Holding all other factors constant, a
rise within the price of a decent or service will decrease the number demanded, and
contrariwise. Market demand is that the total quantity demanded across all consumers in a
very marketplace for a given good. Aggregate demand is the total demand for all goods and
services in an economy. Multiple stocking and strategies are often required to handle the
demand. Demand refers to consumers' desire to buy goods and services at given prices.
Demand can mean either a market demand for a particular good or aggregate demand for
the whole of all goods in a particular economy. Demand, together with supply, determines
the particular prices of products and also the volume of products that changes hands in a very
market. Desire is the key difference between demand and needs. If a person can afford
everything then his demands become his need.

Conclusion

I did my best to make sure that you understand the most vital concepts of marketing which
act as a base all time for any decision, policy or strategy. I hope you had an enriching read
throughout. If you wanted to learn about Marketing, business strategies or some case study
Full MBA course would be great choice for all of you.

Navdeep Yadav
Complete MBA course: Marketing and business Strategy