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01-Need Want, Demand

Marketing is the process of communicating the value of a product or service to customers, focusing on understanding needs, wants, and demand to create long-term relationships. It involves identifying target markets, managing customer relationships, and influencing consumer behavior through the 4 P's: Product, Promotion, Price, and Place. Additionally, effective marketing management requires recognizing different states of demand and addressing both stated and unstated customer needs to enhance satisfaction and drive exchanges.

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22 views5 pages

01-Need Want, Demand

Marketing is the process of communicating the value of a product or service to customers, focusing on understanding needs, wants, and demand to create long-term relationships. It involves identifying target markets, managing customer relationships, and influencing consumer behavior through the 4 P's: Product, Promotion, Price, and Place. Additionally, effective marketing management requires recognizing different states of demand and addressing both stated and unstated customer needs to enhance satisfaction and drive exchanges.

Uploaded by

Owin Rage
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Basics Of Marketing

NEED,WANT, DEMAND
Marketing Definition :-
Marketing is the process of communicating the value of a product or service to customers, for the
purpose of selling that product or service.
Marketing can be looked at as an organizational function and a set of processes for creating,
delivering and communicating value to customers, and customer relationship management that
also benefits the organization. Marketing is the science of choosing target markets through
market analysis and market segmentation, as well as understanding consumer behavior and
providing superior customer value. From a societal point of view, marketing is the link between
a society's material requirements and its economic patterns of response. Marketing satisfies these
needs and wants through exchange processes and building long term relationships
Marketing Management is a social and managerial process by which individuals or firms obtain
what they need or want through creating, offering, exchanging products of value with each other.

NEED/ WANT/ DEMAND:


Need: It is state of deprivation of some basic satisfaction. eg.- food, clothing, safety, shelter.
Want: Desire for specific satisfier of need. eg.- Indians needs food – wants paneer tikka/
tandoori chicken. Americans needs food- wants hamburger/ French fries.
Demand: Want for a specific product backed up by ability and willingness to buy. eg.- Need –
transportation.
Want – Car (say, Mercedes)……but able to buy only Maruti. Therefore, demand is for Maruti.
Marketers cannot create needs. Needs preexists. Marketers can influence wants. This is done in
combination with societal influencers.
Demand influenced by making product :
 APPROPRIATE
 ATTRACTIVE
 APPROACHABLE/ AFFORDABLE
 AVAILABLE EASILY
To target consumers (4 P’s) – Product/ Promotion/ Price/ Place
(2) PRODUCTS- GOODS/ SERVICES/ PLACE.
Product is anything that can satisfy need/ want.
Product component-
1. Physical Good.
2. Service.
3. Idea.
eg. Fast food- burger/ pizza.
Physical Good – material eaten.
Service – purchase of raw material/ cooking
Idea – speed of computer/ processing power.
Importance of product lies in
 Owning them (minor)
 Obtaining them (major).
Hence, products are really a via- media for services.
Hence, in marketing, focus is on providing/ satisfying service rather than providing products.
Marketing Myopia: Focus on products rather than on customer needs.
(3) VALUE/ COST/ SATISFACTION:
 Decision for purchase made based on value/ cost satisfaction delivered by product/
offering.
 Product fulfills/ satisfies Need/ Want.
 Value is products capacity to satisfy needs/ wants as per consumer’s perception or
estimation.
 Each product would have a cost/ price elements attached to it.
Eg. – Travel from city A to city B.
Need – to reach B ( from A)
Method/ Products- Rail/ air/ road or train/ plane.
Satisfaction – Estimated in terms of time lead & travel comfort.
VALUE- Products capacity to satisfy.
COST- Price of each products.
(4) EXCHANGE/ TRANSACTION:
To satisfy need/ want, people may obtain the product through
 Self Production
 By force or coercion
 Begging
 Exchange
EXCHANGE: – The act/ process of obtaining a desired product from someone by offering
something in return. For exchange potential to exist, the following conditions must be fulfilled.
1. There must be at least two parties.
2. Each party has something of value for other party.
3. Each party is capable of communication & delivery
4. Each party is free to accept/ reject the exchange offer.
5. Each party believes it is appropriate to deal with the other party.
TRANSACTION: – Event that happens at the end of an exchange. Exchange is a process
towards an agreement. When agreement is reached, we say a transaction has taken place.
a) Barter transaction.
b) Monetary Transaction.
1. At least two things of value.
2. Condition agreed upon.
3. Time of agreement.
4. Place of agreement.
5. May have legal system for compliance.
Proof of transaction is BILL/ INVOICE.
TRANSFER: – It is one way. Hence, differ from Transaction.
NEGOTIATION: – Process of trying to arrive at mutually agreeable terms.
Negotiation may lead to
 Transaction
 Decision not to Transaction
(5) RELATIONSHIP/ NETWORKING:
Relationship marketing:- It’s a pattern of building long term satisfying relationship with
customers, suppliers, distributors in order to retain their long term performances and business.
Achieved through promise and delivery of
 high quality
 good service
 fair pricing, over a period of time.
Outcome of Relationship Marketing is a MARKETING NETWORK.
MARKETING NETWORK: It is made up of the company and its customers, employees,
suppliers, distributors, advertisement agencies, retailers, research & development with whom it
has built mutually profitable business relationship.
Competition is between whole network for market share and NOT between companies alone.
(6) MARKET:
A market consists of all potential customers sharing particular need/ want who may be willing
and able to engage in exchange to satisfy need/ want.
Market Size = fn (Number of people who have need/ want; have resources that interestothers,
willing or able to offer these resources in exchange for whatthey want).
In Marketing terms: Sellers – called as “INDUSTRY”.
Buyers – referred to in a group as “MARKET”.
Types of Markets:
1. Resource Market,
2. Manufacturing Market,
3. Intermediary Market,
4. Consumer Market,
5. Government market.
(7) MARKETERS/ PROSPECTS:
Working with markets to actualize potential exchanges for the purpose of satisfying needs and
wants.
One party seeks the exchange more actively, called as “ Marketer”, and the other party is called
“Prospect”.
Prospect is someone whom marketer identifies as potentially willing and able to engage in
exchange.
Marketer may be seller or buyer. Most of time, marketer is seller.
A marketer is a company serving a market in the face of competition.
Marketing Management takes place when at least one party to a potential exchange thinks about
the means of achieving desired responses from other parties.
AMA- American Marketing Association.
It defines marketing management as the process of planning & executing the conception of
pricing, promotion, distribution of goods, services, ideas to create exchanges that satisfy
individual and organizational goals.
n Can be practiced in any market.
n Task of marketing management is to influence the level, timing, composition of demand in a
way that will help the organization to achieve its objective. Hence, marketing management is
essentially demand management.
States of “DEMAND” could be:
 Negative demand – Major market dislikes product, hence try to avoid. eg.- injections.
 No Demand – Constant unaware and uninterested in product. eg.- segway.
 Latent Demand – Need exists, not fulfilled by current products. eg.- ATM, mobile.
 Declining demand – Demand decreases over period of time. eg.- pagers, scooters.
 Irregular Demand – Seasonally. eg.- fans, raincoat.
 Full Demand – Good volume of business. eg.- tooth paste, most of FMCG items.
 Overfull Demand – Demand greater than ability to handle. eg.- VSNL sim card.
 Unwholesome Demand – Unwholesome product. eg.- cigarettes, narcotic drugs
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Understanding customer needs and wants is not always simple. Some customer have needs of
which they are not fully conscious, or they cannot articulate these needs or they use words that
require some interpretation. What does it means when the customer asks for a ‘powerful’
lawnmower, a fast lathe an “attractive” bathing suit, or a ‘restful’ hotels?

The market must probe further. We can distinguish among five types of needs:
1. Stated needs (the customer wants an inexpensive car.)
2. Real needs (the customer wants a car whose operating cost, not its initial price, is low).
3. Unstated needs (the customer expects goods service from the dealer).
4. Delight needs (The customer would like the dealer to include an on board navigation
system).
5. Secrets needs (the customer wants friends to see him as a savvy consumer)

Responding only to the stated need may the shortchange the customer. Many consumer do not
know what they wants in a product. Consumer did not know much about cellular phones when
they were first introduced and Nokia and Ericsson fought to shape consumer perception of them.
Simply giving customer what they wants isn’t enough any more – to gain an edge companies
must help to customer learn what they want.

Needs, Wants and Demand representsthe language of marketing. They come under the core concept of
marketing. They plays important role in marketing management. Because, by the help of these factors
the marketing manager solves the problems related to marketing appeared in business organization.

Needs: Needs exist in the individual. They describe basic human requirements. They indicate a state of
felt deprivation. Marketing does not create needs. They exist in the individuals automatically with the
follow of time. Different people have different needs some of them are as follows:
• Physical needs: This types of need is related to food, clothing and shelter.
• Safety needs: Under this need, people want protection from physical harm and economic threat.
• Social needs: Under this need, they want love, friendship and belongingness.
• Ego needs: Under this need, they want status recognition and self-esteem.
• Self development needs: They want knowledge, achievement and creativity.

Wants: They are specific satisfiers of needs. Specific products satisfy wants. Marketing influences wants
by offering various products. Wants are unlimited. Resources are limited. Customers want high value
and satisfaction for money.

Demand: They are wants for specific products. They are backed by ability and willingness to buy. Wants
backed by money and willingness to spend the money become demand.

Place Of Need Want ,Demand In Marketing

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