Needs -Human needs are
the basic requirements and include food clothing and shelter. Without
these humans cannot survive. An extended part of needs today has become
education and healthcare. Generally, the products which fall under the needs category
of products do not require a push. Instead the customer buys it
themselves. But in todays tough and competitive world, so many brands
have come up with the same offering satisfying the needs of the
customer, that even the “needs category product” has to be pushed in the
customers mind.
Example of needs category products / sectors – Agriculture sector, Real Estate (land always appreciates), FMCG, etc.
Wants – Wants are a
step ahead of needs and are largely dependent on the needs of humans
themselves. For example, you need to take a bath. But i am sure you take
baths with the best soaps. Thus Wants are not mandatory part of life.
You DONT need a good smelling soap. But you will definitely use it
because it is your want. In the above image, the baby needs milk but it
WANTS candy
Example of wants category products / sectors – Hospitality industry, Electronics, Consumer Durables etc, FMCG, etc.
Demands – You might
want a BMW or a Mercedes for a car. You might want to go for a cruise.
But can you actually buy a BMW or go on a cruise? You can provided you
have the ability to buy a BMW or go on a cruise. Thus a step
ahead of wants is demands. When an individual wants something which is
premium, but he also has the ability to buy it, then these wants are
converted to demands. The basic difference between wants and demands is
desire. A customer may desire something but he may not be able to
fulfill his desire.
Example of demands – Cruises, BMW’s, 5 star hotels etc.
The needs wants and demands are a very
important component of marketing because they help the marketer decide
the products which he needs to offer in the market. Thus the flow is
like this.
Market >> Identify needs wants and demands >> Offer products to satisfy either needs wants or demands.
