Customer Needs, Wants & Demands

• Basic human requirements

Needs • Physical—food, clothing, warmth, safety

• Social—belonging and affection
• Individual—knowledge and self-expression

• Form that needs take as they are shaped

Wants by culture and individual personality

Demands • Wants backed by buying power

De Realization Direction

W De
fici Ne
an Backed by ma
en ed buying power

t nd
cy
• Examples
• I need food but want fish and chips
• I need a place to live but want a flat
• I need a vacation but want to go to Naran
• I need education but want to pursue BBA
• I need clothing but want designer clothes.
 Product Utilities

• Form
• Place
• Time
• Information
• Possession
 Types of needs
• Stated – inexpensive car, zinger

• Real – What the stated need actually means

low operating cost, quench hunger

• Unstated – good service
• Delight – navigation system, free bottle/fries

• Secret – Needs that the customer does not express,

often intangible in nature
 Offerings & Brands
• Value proposition – a set of benefits that are offered to
customers to satisfy their needs.
• Offering – a combination of products, services, information
& experiences.
• Brand – a brand is a “name, term, sign, symbol, or design, or a
combination of them, intended to identify the goods and services of
one seller or group of sellers and to differentiate them from those of
competition.”
 Value & Satisfaction
• Value is the sum of perceived benefits & costs
to customers.
• It is a combination of quality, service and price
(qsp).

• Satisfaction reflects a person’s judgements of

a products performance in relationship to
expectations.
 Customer satisfaction

• Performance < Expectation = Dissatisfied 

• Performance = Expectation = Satisfied

• Performance > Expectation = Delighted 

 Marketing Channels
• Communication Channels deliver & receive messages
from target buyers. e.g. TV, billboards, internet,
appearance of retail store & website etc.

• Distribution Channels are used to display, sell or

deliver the product or service to the buyer. e.g.
distributors, wholesalers, retailers & agents.

• Service Channels are used to carry out transactions

with potential buyers. e.g. warehouses,
transportation, banks etc.
 Supply chain
• It is a longer channel stretching from raw
materials to components to final products.
 New Consumer Capabilities
• A substantial increase in buying power
• A greater variety of available goods and services

• A great amount of information about practically anything

• Greater ease in interacting and placing and receiving orders
• An ability to compare notes on products and services

• An amplified voice to influence public opinion

Company orientations/History of Marketing
• Production concept – consumers will prefer
products that are widely available & inexpensive.
• Product concept – consumers will favour the
products that offer the most quality, performance
or innovative features.
• Selling concept – organizations must undertake
an aggressive selling & promotion effort.
• Marketing concept – find the right product for
your customers.
• Relationship Concept – keep the customer for life
Holistic Marketing
• Relationship Marketing aims to build mutually
satisfying long term relationships with key
customers to earn & retain their business.

• Integrated Marketing entails devising marketing

activities & assemble fully integrated marketing
programs to create, communicate & deliver value
for consumers.

• Internal marketing is the task of hiring, training,

and motivating able employees who want to serve
customers well.
Socially responsible marketing
 is a marketing philosophy that
a company should take into consideration
what is in the best interest of society in the
present and long term.