NEEDS, WANTS AND

DEMAND
Presented by:
Ravi Sonakia Roll no. 7
Pratik Sharma Roll no. 19
NEEDS

 Definition: A Need is a basic requirement that an individual

wishes to satisfy.
Maslow's Self-Actualization

Hierarchy of
Needs Esteem

Belonging

Safety

Physiological
 Basic Human Needs
 Food
 Air
 Water
 Clothing
 Sex

PHYSIOLOGICAL NEEDS
 Safety and Security
 Protection
 Health

SAFETY NEEDS
 Love and Belonging
 Affection
 Acceptance
SOCIAL NEEDS  Inclusion
 Esteem
ESTEEM NEEDS  Self-Respect
 Self-Esteem
 Respected by Others
SELF-ACTUALIZATION
 Achieve full potential
 Fulfillment
 TYPES OF NEEDS (ACCORDING PHILIP
KOTLER AND KEVIN LANE
KELLER.MARKETING MANAGEMENT,
TWELFTH EDITION)

 1. Stated needs (the customer wants an inexpensive car).

 2. Real needs (the customer wants a car who operating cost, not its initial
price, is low).
 3. Unstated needs (the customer expects good service from the dealer).
 CONT…

 4. Delight needs (the customer would like the dealer to

include an onboard navigation system).
 5. Secret needs (the customer wants to be seen by friends as
a savvy consumer).
DO MARKETERS CREATE NEEDS?
 No, marketing does not create needs.
 Marketing’s role in all of this is to look for places where
there is a gap between what people need and the types of
products and services available.
WANTS
 Wants are the form human
needs take as they are shaped
by culture and individual
personality.
 For Example,

Any person can stay in a small house with less luxuries to cover himself,
but he ‘wish’ to settle in a luxurious big house. Shelter require a roof &
walls so called as home, but as he goes for luxury & choose for a
mansion or bunglows.
NEED WANT
 FACTORS SHAPING WANTS

 External factors:
1) Cultural Factors
2) Social Factors
 Internal Factors:
1) Personal Factors
2) Psychological Factors
 Cultural Factors
1) Culture
2) Sub-culture
3) Social Class
 Social Factors
1) Reference groups
2) Family
3) Role & Statuses
 Personal Factors
1) Age and Stage in Life Cycle
2) Occupation
3) Economic Circumstances
4) Lifestyle
5) Personality and Self-Concept
 Psychological Factors
1) Motivation
2) Learning
3) Perception
4) Beliefs & Attitudes
NEEDS V/S WANTS
CONT…
 Whilst customer needs are broad, customer wants are usually quite
narrow.
 Wants are marketed by marketers in such a way that everyone feel these
wants should be mandatory part of life.
 Need- something you have to have
Want -something you would like to have
 Our needs are relatively few, even from birth.
CONT…
 Consumers typically accept the costs associated with filling needs as
inescapable, even though they may complain about high prices, low
quality or poor service.
 When filling their wants, however, they become more demanding, and
tend to shop around, analyzing the benefits of purchasing from one
supplier versus another.
 Branding becomes critical at that juncture, in order to establish an
advantage over the competition.
NEEDS V/S WANTS IN CONTEXT OF
SAVING
 Spend Your Money on Doing Things Rather Than Owning Things
 In fact, a recent study at the University of California at Berkeley found
that people primarily motivated by the love of their work grow
dissatisfied as they begin to make more money.
 Spendthrifts are confused psychologically between “Needs” and
“Wants”.
DEMAND
 Demand is want backed by buying power.
 Not all wants translate to Demand as resources are limited.
 It is more important that the marketer determine if a demand exists,
rather than a need.
 Some marketers attempt to create a demand, by creating the perception
of a need.
TYPES OF DEMAND
 Individual demand
 Market demand
 Joint demand
 Composite demand
 Competitive demand
 Derived demand
 Variation in demand
 Changes in demand
 Giffen goods
 Direct demand
DEMAND STATES AND MARKETING
TASKS
 Negative Demand → Counter Marketing
 No Demand → Stimulus
 Latent Demand → Developing
 Declining Demand → Remarketing
 Irregular Demand → Synchro-marketing
 Full Demand → Maintain Marketing
 Overfull Demand → Demarketing
BIBLIOGRAPHY
 www.indiastudychannel.com
 www.businessdictionary.com
 www.mbaknol.com
 wiki.answers.com
 www.jeffcanham.com
 www.eco.mpg.de
 www.springerlink.com
 www.wikipedia.com
 www.referenceforbusiness.com
 www.consumerismcommentary.com
 www.accumulatingmoney.com
 www.brainmass.com
 www.sayeconomy.com
 www.mba-tutorials.com
 www.morningstarmultimedia.com
 http://frugalliving.about.com
 www.helium.com
 http://blogs.sun.com/byuan/entry/co
re_concepts_of_marketing_needs
 www.soopertutorials.com
 Thank you
For watching