Needs. Wants and Demands

The most basic concept underlying marketing is that of human needs. A human
need is a state of felt deprivation. Humans have many complex needs. These include
basic physical needs for food, clothing, warmth and safety; social needs for
belonging and affection; and individual needs for knowledge and self-expression.
These needs are not invented by marketers, they are a basic part of the human
make-up. When a need is not satisfied, a person will do one of two things:
1. look for an object that will satisfy it; or
2. try to reduce the need.
People in industrial societies may try to find or develop objects that will satisfy
their desires. People in less developed societies may try to reduce their desires
and satisfy them with what is available.
Human wants are the form taken by human needs as they are shaped by
culture and individual personality. A hungry person in Bahrain may want a
vegetable eurry, mango chutney and lassi. A hungry person in Eindhoven may
want a ham and cheese roll, salad and a beer. A hungry person in Hong Kong may
want a bowl of noodles, char siu pork and jasmine tea. Wants are described in
terms of objects that will satisfy needs. As a society evolves, the wants of its
members expand. As people are exposed to more objects that arouse their
interest and desire, producers try to provide more want-satisfying products and
services.
People have narrow, basic needs (e.g. for food or shelter), but almost unlimited
wants. However, they also have limited resources. Thus they want to choose
products that provide the most satisfaction for their money. When backed by an
ability to pay - that is, buying power - wants become demands. Consumers view
products as bundles of benefits and choose products that give them the best
bundle for their money. Thus a Honda Civic means basic transportation, low price
and fuel economy. A Mercedes means comfort, luxury and status. Given their
wants and resources, people demand products with the benefits that add up to the
most satisfaction.
Outstanding marketing companies go to great lengths to learn about and
understand their customers' needs, wants and demands. They conduct consumer
research, focus groups and customer clinics. They analyze customer complaint,
inquiry, warranty and service data. They train salespeople to be on the look-out
for unfulfilled customer needs. They observe customers using their own and
competing products, and interview them in depth about their likes and dislikes.
Understanding customer needs, wants and demands in detail provides important
input for designing marketing strategies.