Marketing Management I - Needs, Wants, Demands and Desires (2024)

Needs, Wants, Demands and Desires

In marketing, understanding the concepts of needs, wants, demands, and desires is important because they help businesses identify and meet customer needs effectively. Here are the definitions of each term:

• Needs: Needs are the basic requirements for human survival such as food, shelter, and clothing. They are considered a primary motivator for consumers as they are essential to sustain life.
• Wants: Wants are desires or aspirations that go beyond basic human needs. For example, a person may need food to survive, but they may want a specific type of food or brand. Wants are often influenced by social and cultural factors and can vary greatly from person to person.
• Demands: Demands refer to the willingness and ability of customers to purchase a product or service. It represents the economic desire for a product or service backed by the ability to pay for it.
• Desires: Desires are strong wishes or wants that often arise from the social or cultural context of an individual. They may not be essential, but they are compelling motivators for consumption.

In marketing, understanding the differences between needs, wants, demands, and desires is important because it helps businesses identify and meet customer needs effectively. By understanding what motivates customers, companies can tailor their products and services to meet those needs and ultimately generate demand for their offerings. Additionally, understanding the differences between these concepts can help businesses identify opportunities to create new products or services that fulfill customers' desires or wants in innovative ways.

Here are some examples to help illustrate the differences between needs, wants, demands, and desires:

• Need: A person needs shelter to survive. This is a basic human need.
• Want: A person may want a house with a swimming pool and a large backyard. This is a desire that goes beyond the basic need for shelter.
• Demand: A person who is able and willing to pay for a house with a swimming pool and a large backyard is demonstrating demand for this type of property.
• Desire: A person may desire a luxury car, even though they do not need it for basic transportation. This desire may be driven by social status or personal preference.

Another example could be:

• Need: A person needs food to survive. This is a basic human need.
• Want: A person may want to eat sushi for dinner. This is a desire that goes beyond the basic need for food.
• Demand: A person who is able and willing to pay for sushi is demonstrating demand for this type of food.
• Desire: A person may desire to eat at a Michelin-starred restaurant, even though it may be more expensive than other options. This desire may be driven by the desire for a unique dining experience or to impress others.

Types of needs

In marketing, needs are classified into different types based on their nature and characteristics. Here are the main types of needs:

• Stated needs: Stated needs are the needs that customers express or state when asked about their requirements. For example, a customer may state that they need a laptop for work purposes.
• Real needs: Real needs are the underlying needs that customers have, even if they are not consciously aware of them. For example, a customer who wants a laptop for work purposes may actually need a portable device with a long battery life that can handle heavy processing tasks.
• Unstated needs: Unstated needs are the needs that customers may not be aware of, but which can be inferred through observation and analysis. For example, a customer who buys a laptop may have an unstated need for a high level of security to protect their work-related data.
• Delight needs: Delight needs are the needs that go beyond the basic requirements and can provide customers with a positive emotional experience. For example, a customer may delight in a laptop that has a sleek design or personalized features that enhance their experience.
• Secret needs: Secret needs are the needs that are hidden or subconscious desires that individuals may have, but may not consciously express or be aware of. These needs may be based on emotions, personal values, or aspirations, and may not be related to any specific product or service. Understanding and tapping into secret needs can be a powerful marketing strategy for businesses, as it allows them to appeal to customers on a deeper emotional level. For example, a luxury car company may use marketing messages that tap into the secret need for status and social recognition, even though the customer may not be consciously aware of these desires.

By understanding the different types of needs, businesses can develop products and services that better meet the needs of their customers. This can result in greater customer satisfaction and loyalty, as well as increased sales and profitability.

States of a demand

In marketing, demand can be classified into different states based on the level of desire or willingness to buy a product or service. Here are the main states of demand:

• Negative Demand - This refers to a situation where consumers actively avoid or dislike a product or service, even when they need it. For example, many people have negative demand for cigarettes due to their harmful effects on health.
• Nonexistent Demand - This refers to a situation where there is no demand for a product or service because it is either not needed or not known to exist. For example, there may be no demand for a product that is not relevant to consumers or is not marketed effectively.
• Latent Demand - This refers to a situation where consumers have a need or desire for a product or service, but are not currently aware of it or are unable to fulfill it. For example, a person who has never heard of a particular brand of smartphone may have latent demand for it once they become aware of its features.
• Declining Demand - This refers to a situation where the demand for a product or service is decreasing over time. For example, the demand for traditional print media has declined in recent years due to the growth of digital media.
• Irregular Demand - This refers to a situation where the demand for a product or service is fluctuating or seasonal. For example, the demand for air conditioners is typically higher in the summer months and lower in the winter months.
• Full Demand - This refers to a situation where the demand for a product or service is equal to the available supply. For example, a popular restaurant may have full demand during peak hours when all of its tables are occupied.
• Overfull Demand - This refers to a situation where the demand for a product or service exceeds the available supply. For example, a limited edition product that is highly sought after may have overfull demand, resulting in long waiting lists or even riots.
• Unwholesome Demand - This refers to a situation where the demand for a product or service is considered harmful or unethical. For example, there may be unwholesome demand for illegal drugs or counterfeit goods.