September 19, 2014

Needs wants and demands

Needs wants and demands Needs wants and demands2

Needs wants and demands are a part of basic marketing principles. Though they are 3 simple worlds, they hold a very complex meaning behind them along with a huge differentiation factor. In fact, A product can be differentiated on the basis of whether it satisfies a customers needs, wants or demands. Each of them is discussed in detail in this article

Needs -Human needs are the basic requirements and include food clothing and shelter. Without these humans cannot survive. An extended part of needs today has become education and healthcare. Generally, the products which fall under the needs category of products do not require a push. Instead the customer buys it themselves. But in todays tough and competitive world, so many brands have come up with the same offering satisfying the needs of the customer, that even the “needs category product” has to be pushed in the customers mind.

Example of needs category products / sectors – Agriculture sector, Real Estate (land always appreciates), FMCG, etc.

Wants – Wants are a step ahead of needs and are largely dependent on the needs of humans themselves. For example, you need to take a bath. But i am sure you take baths with the best soaps. Thus Wants are not mandatory part of life. You DONT need a good smelling soap. But you will definitely use it because it is your want. In the above image, the baby needs milk but it WANTS candy :)

Example of wants category products / sectors – Hospitality industry, Electronics, Consumer Durables etc, FMCG, etc.

Demands – You might want a BMW or a Mercedes for a car. You might want to go for a cruise. But can you actually buy a BMW or go on a cruise? You can provided you have the ability to buy a BMW or go on a cruise. Thus a step ahead of wants is demands. When an individual wants something which is premium, but he also has the ability to buy it, then these wants are converted to demands. The basic difference between wants and demands is desire. A customer may desire something but he may not be able to fulfill his desire.

Example of demands – Cruises, BMW’s, 5 star hotels etc.

The needs wants and demands are a very important component of marketing because they help the marketer decide the products which he needs to offer in the market. Thus the flow is like this.

Market >> Identify needs wants and demands >> Offer products to satisfy either needs wants or demands.

Hitesh Bhasin

Hitesh Bhasin

Admin at Marketing91
I love writing about marketing and advertising. How did you like the post? Kindly send me you suggestions and post ideas via Feedback or you can also Follow us on Email and get daily marketing updates.
Hitesh Bhasin
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I love writing about marketing and advertising. How did you like the post? Kindly send me you suggestions and post ideas via Feedback or you can also Follow us on Email and get daily marketing updates.

Comments

  1. Narendra says:

    Need, want and Demands This is easiest Concept
    Here we take Small sentence

    Think, suppose you are trusty then your Need is WATER because it’s basic Requirement
    But You Want COLD Water and if your Demand “COLD WATER WITH ICE CREAM”

  2. its very easy to understand…

  3. SYED M RAFIQUE HASHMI says:

    Its really easy to understand

  4. SYED M RAFIQUE HASHMI says:

    Its good

  5. nice work

  6. salman usmani says:

    very simple language….its really easy to undestand…n good examples

  7. FAYAZ HUSSAIN CHANDIO says:

    nice work with most suitable example every one can easily understand that what is need want and demand….

  8. Abul Hashem says:

    Easy to understand. Its very useful.

  9. if a person wants to purchase computer for last six months and now he has enough money and power to purchase then his need becomes?
    need
    demand
    necessity
    want

    with explanation

    • Hitesh Bhasin says:

      It is still a need. But the computer he is going to buy will become a type of demand. Say he buys a ACER computer. It is a want. Because the laptops of Acer is good. But say if he wants to buy an ALIENWARE laptop or a McAIR – It becomes a desire. Because he is accumulating money, he wont be able to buy an Alienware laptop which costs 1 lakh and above. Thus, the alienware is a desire and an acer is a want. The laptop is in no ways a need because he can go to cyber cafe’s and complete his work. Or if it was a need, he neednt wait for 6 months.
      Hope this explains the concept :)

Trackbacks

  1. The Marketing Concept says:

    [...] the strategic decisions made by the company are taken keeping the customer in mind. Especially the needs wants and demands of the customers. A holistic approach is taken with the whole orgnization striving to make the [...]

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