Needs as the Motivation for Buying Products

Consumers buy products because of needs that requires satisfaction. Need is what
propels buyers to buy a product. Every need must be satisfied by a specific product. Knowing
the needs of the market is highly important in order for them become loyal and even stewards
of companies that they love and support due to the products that a valued company creates. A
famous determinant of human needs is the Maslow’s Hierarchy of Needs.

The Maslow’s Hierarchy of Needs

Physiological Needs - This is the first stage in the Maslow’s Hierarchy of Needs. Basic needs
are the requirements for human existence. If these requirements are not met, the human body
cannot function properly.Physiological needs are the most vital and therefore should be met
first.
Examples include air, water, and food as requirements for survival in all animals,
including humans. Clothing and shelter provide necessary protection. While maintaining an
adequate birth rate shapes the intensity of the human sexual instinct, sexual competition may
also shape said instinct.
Safety needs - The second stage in the Maslow’s Hierarchy of Needs. Once physiological
needs are satisfied, safety needs take precedence and dictates behavior.
Example, in the absence of physical safety, people may experience post-traumatic
stress disorder or trauma. Safety needs include personal security, financial security, health and
wellbeing, safety net against accidents and illness and their adverse impacts.
Social Needs - Third stage in the Maslow's Hierarchy of Needs, also known as the stage for
love and belongingness.
Esteem Needs - The fourth stage of the Maslow's Hierarchy of Needs. Once basic needs have
been satisfied, esteem needs becomes essential to an individual. Once an individual
have adequately met their need for love and belonging, they can begin to cultivate positive
feelings of self-worth and self-esteem.
These needs include:
✔ Self esteem
✔ Respect
✔ Achievement
✔ Confidence
✔ Recognition
✔ Accomplishment
Self-actualization Needs - The fifth and the last stage of Maslow's Hierarchy, it is the highest
level of the Maslow’s hierarchy. This level pertains to what a person’s optimum potential is and
realizing that potential.
THE MASLOW’S HIERARCHY OF NEEDS

D. PRODUCT AND SERVICES

1. What are Products and Services?
“"A product is a tangible item that is put on the market for acquisition, attention, or
consumption, while a service is an intangible item, which arises from the output of one or
more individuals. Although it seems like the main distinction between the two concepts is
founded on their tangibility, that is not always the case. In most cases services are
intangible, but products are not always tangible.”
 Product marketing Service marketing

Product marketing refers to the process Service marketing implies the

in which the marketing activities are marketing of economic activities,
aligned to promote and sell a specific offered by the business to its
product for a particular segment. clients for adequate
consideration.
Meaning
Marketing mix 4 P’s 7 P’s

Sells Value Relationship

Who comes to Products come to customers Customers come to service

whom?
It is neither owned nor transferred
It can be owned and resold to another to another party.
Transfer party.
Services cannot be returned after
they are rendered.
Returnability Products can be returned.
They are tangible, so customer can see
and touch it, before coming to the buying
decision.
They are intangible, so it is difficult
Tangibility to promote services.
Product and the company producing it, Service cannot be separated from
are separable. its provider.
Separability
Products cannot be customized as per Services vary from person to
requirements. person; they can be customized.
Customization
They are non-imagery and do not
receive quick response from
customers.
They are imagery and hence, receive
Imagery quick response from customers.
Quality of a product can be easily Quality of service is not
measured. measurable.
Quality comparison

2. Sources of Business Ideas

Business ideas are thoughts that when implemented can lead to income
generalization. Entrepreneurs first come up with ideas from different sources that should
lead them to starting a well-planned business.
Here are some of the sources of business ideas:
1. Surveys - Business ideas can be generated from surveys. Through this type of data
generation method, entrepreneurs will have awareness of what customers are
looking for and therefore an opportunity of a business to innovate based on the
responder’s answers.
2. Training - This is probably the most home-based business. For example, there are
seminar that conducts how to cook, bake, handcraft, and even repair things.
Institutions such as NegoEskwela and TESDA are some of the country’s institution
that offers short courses and trainings for aspiring entrepreneurs.
3. Experience - Probably the best and effective source of business idea is from
experience. This can be from work or even at school. As they say experience is the
best teacher, which means that good things as well as mistakes from experience
can be valuable factors in creating and growing a business.
4. Hobbies - This can be a good business idea because it is something that an
entrepreneur is fond of doing and can enjoy while doing the business. Most car
enthusiasts for example create business out of their own hobby as a way for them to
enjoy while they operate their business.
5. Talents - A talent is something that can be innate in a person, or that has been
honed for years.
Someone’s talent can be a good idea for business because like a hobby, it is
something that can be enjoyed, and entrepreneur will not have the feeling of
working while doing it. For example, a talented musician who has a passion of
teaching and sharing his or her craft can teach and start a talent school that help
potential musician and artists improved their gift.
6. Market Gaps - Also known as “niche”, spotting a gap in the market can also form a
great business idea. A market gap can mean an important area in the market that is
not occupied and therefore is can be filled with product to satisfy the market.
7. Events - A business can also be created through attending events in which new
ideas are exchanged. It is also a venue where people with similar interests gather
and where the birth of new business can happen.
8. Media - An idea can also come from the media. Reading magazines, newspapers
and such published materials that contain business related issues can help one
bring about.
 Product Life Cycle

3. Life Cycle Through the Stages

1. At the Introduction stage the product comes to the market and the business looks to
get a foothold on the sales ladder by:

 Establishing branding and assuring the market of the quality of the new product.

 An initial low pricing policy to get into the market, though with little competition, price
may be high initially to recoup development costs.

 Selection of a distribution model to get the product onto the market.

 Promotion of the product through aiming it at specific target groups such as online
forums.

2. After successful Introduction comes the Growth stage. This will look to take
developments at the first stage up to another level by:
  Maintaining the quality of the product and adding any extra services or support that
becomes obvious during introduction.

 Keeping the price at a good level to maintain sales growth.

 Increasing distribution and sourcing new, faster ways of getting the product onto the
shelves.

 Marketing campaigns aimed at a broader audience and at growing market share for
the product.

3. With growth established, Maturity is the next stage of the life cycle. The business deals
with this by:

 Adding features that will make the product differ from the inevitable competitors that
enter the market.

 Cutting price to counter competition.

 Revising distribution channels and using incentives to encourage stores to stock the
original product in preference to newcomers.

 New promotions that aim to show differences between products.

4. When the Decline happens, the business will consider:

 Keeping the product on the market but adding or removing features or finding new
uses for it.

 Reducing costs and production and keeping it just for a niche segment of the market.

 Discontinuing the product or selling the production rights to another company.