THE CONCEPT OF NEEDS, WANTS, AND BRANDING NEEDS

AND WANTS
 All human beings, whether rich or poor, have needs and wants. In the parlance
of economics, it is only in human needs and wants that rich and poor share a
common ground. The term "NEEDS" refers to the things that a person must
have in order to survive. These include food, Clothing and shelter, among
others the term "WANTS" refers to the things that a person must have in order
to be happy, comfortable and satisfied.

 Therefore, as an entrepreneur, you must produce and sell a product that will
satisfy both the needs and wants of the consumers.

 In the theory of hierarchy of needs, Abraham Maslow postulates than human

needs are classified into five levels.

 This theory will help the entrepreneurs in determining the particular needs of
the target consumers.
 Needs are fulfilled level by level
Self
Actualization

Self-esteem

Social
Safety
Physiological
 1. PHYSIOLOGICAL NEED - include food, clothing, shelter, water and sleep.
They are generally known as the basic needs.

 2. SAFETY NEEDS - These include physical safety and financial safety.

 3. SOCIAL NEEDS - These include the need for friends, acceptance and love or
belonging, which are all viewed from the perspective of social groups.

 4. SELF-ESTEEM - These include the need for respect, recognition, and honor
by the local community or by the Filipino people in general. The need to become
popular or well-known is the very essence of self-esteem.

 5. SELF-ACTUALIZATION - This need is satisfied when people have finally

realized their "ULTIMATE DREAM" For example finally wins in the elections.
BRANDING
 As a future entrepreneur, picture your product without a brand
name, displayed on the shelves of various malls and groceries
competing with other product with brand names.
 “BRAND” refers to the name, design, color, symbol quality,
features, or a combination of these elements that make from
similar products of the competitors.
BRAND NAME
 Almost everything in the market today is already branded. The
brand may have started from the time the product is produced,
planted or harvested. Brand Names influence the buying decision
of the consumers.

BRANDING STRATEGY
 States with the formulation of a brand name for the first single
product that the business intends to make. The situation becomes
more complicated when the business starts to offer an additional
product.
UMBRELLA BRAND APPROACH
 In the umbrella brand approach of branding names, all products of the business carry the same
brand name.

 The umbrella brand strategy helps the business introduces new product line more easily and receive
a similar favorable response from the consumers who appreciated the company's other products.

HOUSE BRAND APPROACH

 In the house Brand Approach, every product of the same business has a separate name that
distinguishes it from the rest of the company’s product

 The consumers may not even be aware that the different products are produced by the same
business.

BRANDING EXTENSION STRATEGY

 The level or degree of the consumers perceptions or reactions to a brand is technically known as
"BRAND EQUITY". When the level is high or when the perception of the consumers is favorable
to the brand, the brand equity is considered positive. This indicates that the product has strong
brand name in the market.
There are two approaches in Branding extension strategies, namely,
LINE EXTENTION APPROACH AND PRODUCT EXTENTION APPROACH.

LINE EXTENTION APPROACH

 In the line extension approach, the existing product has been modified or altered
resulting in a new product or more products without eliminating the original product.
 The new additional product must be within the same category.
 The change or modification may be in the form of flavor, ingredients, mechanical
parts, size or usage.
 Since the different varieties of the product line are definitely competing against each
other in the market, the entrepreneur must sure that each product offers considerable
benefits to the target consumers.

PRODUCT EXTENTION APPROACH

 In the product extension approach, a new product carries the brand name in a new
category. The new or added appears to be totally different from the old or existing
product line.
Thank you
Have a nice
day