Marketing serves customers and each customer has different needs, wants and demands for themselves. It is the task of the marketer to differentiate them. To summarize, Needs are things that fulfill basic requirements. Wants can be for items that the customer wants but does not need. Demands are products that the buyer will go out of his way to purchase and pay for. In fact, A product can be differentiated on the basis of whether it satisfies a customer’s needs, wants or demands. Each of them is discussed in detail in this article
Table of Contents
What are 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.
What are 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 :)
What are 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.
Difference between Needs Wants and Demands
- A need is a basic survival requirement of Human beings. Example – Food, Shelter and others
- A want is based on an individual’s personality and culture and generally brings convenience. Example – A car or a bike
- A demand is a desire of the customer which is backed by buying power. Example a Super car or Luxury handbags.
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.
Here is a video by Marketing91 on Needs Wants and Demands.
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