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CH 1 Lesson 7 Needs, Wants, and Demands

This document discusses different types of market demand and how to measure them. It defines market demand, primary demand, and selective demand. It also defines potential demand, latent demand, and current demand. Potential demand exists when customers have the means to purchase a product but no product exists to meet their needs. Latent demand exists when desired products are unavailable or too expensive. Current demand can be measured through intent to purchase surveys. The document also discusses the concepts of utility, value, and satisfaction in relation to customers and products. It provides tips for marketers to ensure maximum customer value and satisfaction such as balancing quality and price while providing a consistent customer experience.

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529 views27 pages

CH 1 Lesson 7 Needs, Wants, and Demands

This document discusses different types of market demand and how to measure them. It defines market demand, primary demand, and selective demand. It also defines potential demand, latent demand, and current demand. Potential demand exists when customers have the means to purchase a product but no product exists to meet their needs. Latent demand exists when desired products are unavailable or too expensive. Current demand can be measured through intent to purchase surveys. The document also discusses the concepts of utility, value, and satisfaction in relation to customers and products. It provides tips for marketers to ensure maximum customer value and satisfaction such as balancing quality and price while providing a consistent customer experience.

Uploaded by

TJ gatmaitan
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 PPTX, PDF, TXT or read online on Scribd
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LESSON 7:

Needs, Wants, and Demands


MARKET DEMAND

is the total demand of all


potential customers for a specific
product/service over a specific
period in a specific market area.
MEASURING MARKET DEMAND

1.1 Primary Demand


1.2 Selective Demand
PRIMARY DEMAND

refers to the total demand for all


brands of a particular product or
service, aka total industry
demand.
SELECTIVE DEMAND

is the demand for a specific


brand of product or service.
MEASURING MARKET DEMAND

2.1 Potential Demand


2.2 Latent Demand
2.3 Current Demand
POTENTIAL DEMAND

 emerges when there is no demand


yet for a particular product/service,
but there exists a market with
sufficient financial capability to
purchase.
LATENT DEMAND

 results when customers in a market are


unable to satisfy specific desires because
no products/services exist in the market
that can satisfy them or when the
product/service is available, but is priced
beyond their reach.
In order to satisfy latent demand,
marketing organizations must:
 introduce goods currently unavailable that are
desired by customers
 influence and persuade customers to reallocate
their expenditures towards the company’s product
 offer credit, installment, or similar terms to make
the product affordable to customers.
CURRENT DEMAND

 refers to the number of people of a


particular market at present that would
actually purchase the product or service
offered. This can be measured through
“intent to buy” survey.
Utility, Value, and
Satisfaction
UTILITY

 refers to the total satisfaction consumers


can receive from the consumption of a
product or service.
VALUE

 refers to the value customers place on a


product or service.
SATISFACTION

 is the measure of how well customer


expectations from a purchased product or
service have been met.
To ensure maximum customer value and
satisfaction, marketers must:
 balance product or service quality and price
 establish consistency among product variability,
level of customer service, and efficiency
 create a buying atmosphere and deliver purchase
convenience
CLASS ACTIVITY
1. Form a group of 3. Make a simple product
plan for a beauty soap. Please be guided by
the following:
a. Conduct a market research by
interviewing ten young women aged 20
to 25 years old, the user of beauty soap.
b. Find out their needs, wants, and
expectations to the beauty soap they are
using.
CLASS ACTIVITY
Use the matrix below:
CLASS ACTIVITY
c. Based on the gathered information, formulate a product plan using
the guide below:

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