Needs, Wants, and Demands in Marketing Strategy

Compare and contrast customer needs, wants, and demands. Describe the need versus the want for the following products: McDonald's, Sony TV, Nestle Water, iPod, Pizza Hut, Nike, and Rolex.

Understanding Needs, Wants, and Demands

1. Needs: The most basic concept underlying marketing is the satisfaction of needs. These include basic physical needs for food, clothing, warmth, and safety; social needs for belonging; and individual needs for knowledge and self-expression. These are states of felt deprivation.
2. Wants: Human needs as they are shaped by culture and individual personality. For example, while everyone needs food, individuals want different dishes to fulfill their hunger. People in India may want spicy rice, while people in Kuwait may want regular rice. Wants are shaped by one’s society and are described in terms of objects that will satisfy needs.
3. Demands: Wants become demands when backed by buying power. Given their wants and resources, people demand products with benefits that provide the most value and satisfaction.

Examples of Consumer Needs vs. Wants

• McDonald's or Pizza Hut: There is a physical need for food. While the consumer is hungry, they want a burger or a pizza as their specific need satisfier.
• Sony TV: The need is the psychological requirement to stay updated on international news and entertainment.
• Nestle Water: There is a physical need for hydration. The individual is thirsty and needs water, but specifically wants Nestle brand water.
• Nike and Rolex: For Nike, the need is a physical requirement for athletic shoes. For Rolex, the need is to know the time, but the want is a luxury watch for status or quality.
• iPod: The need is likely for entertainment or individual self-expression.

Defining Market Offerings

Market offerings are a combination of products, services, information, or experiences offered to a market to satisfy a need or want. They are not limited to physical products; they also include services and other entities, such as persons, places, information, and ideas.

What is Marketing Myopia?

Sellers who are so taken with their products that they focus only on existing wants and lose sight of underlying customer needs suffer from "marketing myopia."

The Concept of Exchange in Marketing

Exchange is the act of obtaining a desired object from someone by offering something in return. Marketers aim to build strong relationships by consistently delivering superior customer value.