ENTREPRENEURSHIP

Governor Pack Road, Baguio City, Philippines 2600

Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section: HUMSS 12
Email: [email protected]; Website: www.uc-bcf.edu.ph

MODULE 4 – ENTREP Subject Teacher:

THE CONCEPTS OF NEEDS, WANTS, AND Branding

Learning Objectives:
At the end of this module, the learners are expected to:
a. differentiate needs from wants and
b. identify the commonly used branding strategy.

Once an entrepreneur fails in satisfying the needs and wants of the target consumers better
than the competitors the other elements of the marketing mix will definitely lose their significant value.
This module will focus on helping entrepreneurs identify and properly position a product or service.

NEEDS and WANTS

The term needs refers to the things that a person must have in order to survive. These include
food, clothing, and shelter among others. On the other hand, wants refers to the things that a person
must have in order to be happy, comfortable, and satisfied. As an entrepreneur, you must produce
and sell a product that will satisfy both needs and wants of the consumers.
In the theory of Abraham Maslows’s Hierarchy of Needs, it is shown that human needs are
classified into five levels. This theory will help you determine the particular needs of the target
customers.

i. The first level of Maslow's pyramid is Physiology.

Physiology is getting your basic needs fulfilled. This means that you have food to eat
and air to breathe. On the business side of it would be a manager giving the new
employee you just hired a base salary, so that they will be able to provide food for
them to eat.
ii. The second level is Safety and Security. It consists of having a roof over your head and
clothing on your body. In the business world this would mean having a pension plan in place
to secure you in the future. In this level, people should not have to worry about money and if
they are going to lose their job or not.
iii. The third level of the pyramid is Belongingness/Social. Belongingness is the need for love and
acceptance. This basically means that people have friends and people that make them

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 ENTREPRENEURSHIP
Governor Pack Road, Baguio City, Philippines 2600
Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section: HUMSS 12
Email: [email protected]; Website: www.uc-bcf.edu.ph

MODULE 4 – ENTREP Subject Teacher:

want to wake up for in the morning. In the business work this looks like have friendly work
environment where everyone feels needed and heard.
iv. The fourth level is Esteem. Esteem deals with the self, having a great self-image and self-
respect. It basically means that you know who you are and that you like who you have
become. In the business world it means that you have reached the level that you now have
a job title. Within that job title it adds a level of pride for you and your job.
v. The last level of Maslow's pyramid is Self-Actualization. Self-Actualization is the level that we
all should want to reach. At this point in the pyramid you have come to know who you are
and have accepted it. It is different than esteem by realizing that there is still room to grow
with Self-Actualization, esteem is just coming to know who you are and being okay with it. In
the business world it looks like having a challenging job, not to the point that you do not think
you are able to do your job, but you love the challenges that come with your job.

It may appear that self-actualization is the terminal point of all needs because upon reaching
it, there are no other needs to be met. However, in the field of Economics, it is strongly stated that the
human beings have insatiable needs and wants.
The theory of hierarchy of needs does not carry any value to you as a future entrepreneur if
you simply memorize the different levels of human needs. The theory provides you with a sound basis
for determining the kind or type of products to produce and sell.

BRANDING
Producing a general product may not be beneficial or favorable to the business. It may not be
able to create a competitive product position in the minds of the consumers, It becomes a must,
therefore that you give a specific name to your product, make a product that is distinct and different
in terms of attributes, beliefs, benefits and value from your competitors. Thus, branding is imperative.
Brand names play a significant role in positioning of the product. Brand refers to the name,
design, color, symbol, quality, features, or a combination of these elements that make the product
separate and distinct from others.
Consumers sometimes become more familiar with the brand name than with the product
itself. They position the brand, and not the product, at the back of their minds. The tendency is that
the consumers directly equate the product with the brand. The entrepreneur must exercise extra
care about this behavior of the consumers. For an instance, people say “pampers” instead of
diapers; “coke” instead of soda; “colgate” instead of toothpaste; “Xerox” instead of photocopy. This
only confirms that the consumers are unconsciously affirming that the brand name has been
positioned in their minds regardless of other available brands form competitors.
Branding has been considered as another marketing strategy of product positioning. The
brand carries the attributes, benefits, and even values of the product. It communicates to the
customers the relevant information about the product. It provides the specific perspective of the
product to the consumers.
Brand Name
Brand names influence the buying decision of the consumers that is why the entrepreneur
must define a clear and effective branding strategy, so that the product remains competitive in the
market, the basic concept in effective and competitive branding strategy is to “build a strong
brand”.

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 ENTREPRENEURSHIP
Governor Pack Road, Baguio City, Philippines 2600
Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section: HUMSS 12
Email: [email protected]; Website: www.uc-bcf.edu.ph

MODULE 4 – ENTREP Subject Teacher:

Now, what is the best brand name for a product? The term “best” indicates that the brand
name can easily attract the attention of the target consumers, influence them, and lead them to
buy the product.
Though there are no standard procedures int eh formulation of the best brand name, the
following approaches may be of great help:
1. Review carefully the attributes, benefits, and values of the product.
2. Evaluate the consumers in the target market.
3. Analyze the proposed marketing strategies.
4. List the possible brand names by considering the first three steps.
5. Limit the brand name to two words.
6. Check the internet if the chosen brand name already exists.

Branding Strategy
Branding Strategy starts with the formulation of a brand name for the single product that the
business intends to make. The situation becomes more complicated when the business starts to offer
an additional product. Though most entrepreneurial endeavors engaged in manufacturing start with
a single product, they eventually add a new product line in response to the new entrepreneurial
opportunities. When this happens, the entrepreneur is torn whether all the products carry one brand
name or will each carry a distinct and separate brand name.
Businesses existing in situations like this adopt two branding strategies, namely umbrella brand
approach and house brand approach.
UMBRELLA BRAND APPROACH of branding names supports that all products of the business
carry the same brand. The various product lines are not differentiated from each other from the
perspective of the brand name.
The umbrella brand strategy helps the business introduce new product lines more easily and
receive a similar favorable response from the consumers who appreciated the company’s other
products. However, in case one of the products is rated poorly by the consumers for any reason, the
other products with the same brand will likewise be affected. It may be difficult to introduce a new
product once the brand has been damaged already. Toyota for an instance suffered this problem
when the issue on Toyota Montero came to light.
In the HOUSE BRAND APPROACH, every product of the same business has a separate brand
name that distinguishes it from the rest of the company’s products. For example, Procter & Gamble
Philippines, Inc. has applied the house brand approach in providing brand names to its various
product lines such as Joy, Tide, Downy, Pampers, Pantene, among others.

Branding Extension Strategy

The level or degree of the consumer’s perceptions or reactions to a brand is technically known
as brand equity. When the level is high or when the perception of the consumers is favorable to the
brand, the brand equity is considered positive. This indicates that the product has a strong brand
name in the market. The reverse scenario happens when the brand equity is considered negative.
Entrepreneurial ventures with high positive brand equity are capitalizing or leveraging on such
concept. This branding strategy is usually called branding extension strategy

Generally, there are two approached in branding extension strategies, namely, line extension
approach and product extension approach. In the LINE EXTENSION APPROACH, the existing product
has been modified or altered resulting in a new product or more products without eliminating the
original product. The new additional product must be within the same category.
The change or modification may be in form of flavor, ingredients, mechanical parts, size, or
usage. Usually, it is due to the existence of a new promising target that the existing product is
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 ENTREPRENEURSHIP
Governor Pack Road, Baguio City, Philippines 2600
Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section: HUMSS 12
Email: [email protected]; Website: www.uc-bcf.edu.ph

MODULE 4 – ENTREP Subject Teacher:

modified. For an example, the Bear Brand milk products now include the variations like sterilized milk,
full cream evaporated milk, pasteurized milk, and low-fat milk. Since the different varieties of the
product line are definitely competing against each other in the market, the entrepreneur must make
sure that each product offers considerable benefits to the target consumers.
On the other hand, in the PRODUCT EXTENSION APPROACH, a new product carries the brand
name in a new category. The new or added product appears to be totally different from the old or
existing product line.
For example, General Electric Company, most commonly known as GE, provides one brand
name to all of its products under the different categories, such as refrigerators, freezers, oven,
dishwashers, air conditioners among others. Each category offers various models of products.

References:
BAL 338.04
Kuratko, D. (2012). Entrepreneurship: An Introduction. Pasig City: Cengage Learning Asia
K9654
2012 Pte. Ltd.
BAL 658.421 Batisan, R. (2016). Entrepreneurship. Makati City: Diwa Learning Systems Inc
B3208
2016

BAL 658.421
Aduana, N. (2016). Entrepreneurship in Philippine Setting. Quezon City: C&E Publishing,
B3208
2016 Inc.

Kotler, P., & Armstrong, G. (2013) Principles of marketing (14th ed.). Harlow, England:
Pearson Education Ltd.

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