Core Concepts of Marketing:Needs,Wants

Needs,Wants and Demands

NeedsNeed refers to something that is deep-rooted in an individual’s personality. How individuals go about satisfying that need will be conditioned by the cultural values of the society which they belong to. So in some cultures the need for self-fulfillment may be satisfied by a religious penance,while other societies may seek it through a development of their creative talents.

WantsWants are the options to satisfy a specific need. They are desire for specific satisfiers to meet specific need. Needs are limited, but wants are many; for every need, there are many wants. Marketer can influence wants, not needs. He concentrates on creating and satisfying wants.

DemandDemand is the want for specific products that are backed by the ability and willingness to buy them. Wants become demands when supported by purchasing power. The marketer must not only be interested in knowing how people may want their product but also how many actually have the purchasing power to purchase. The concept demands refers to the quality of a good or service that consumers are willing and able to purchase at various prices dealing a period of time.

Product

Product can also be referred as a bundle of satisfaction, physical and psychological both. Product includes core product , product-related features , and product-related services. So, tangible product is a package of services or benefits. Marketer should consider product benefits and services, instead of product itself.

Marketer can satisfy needs and wants of the target consumers by product. It can be broadly defined as anything that can be offered to someone to satisfy a need or want. Product includes both good and service. Normally, product is taken as tangible object, for example, pen, television set, bread, book, etc.

However, importance lies in service rendered by the product. People are not interested just owning or possessing products, but the services rendered by them.

Utility

 Utility means overall capacity of product to satisfy need and want. It is a guiding concept to choose the product. Every product has varying degree of utility. As per level of utility, products can be ranked from the most need-satisfying to the least need-satisfying. Utility is the consumer’s estimate of the product’s overall capacity to satisfy his/her needs. Buyer purchases such a product, which has more utility. Utility is, thus, the strength of product to satisfy a particular need. Marketing is an activity that creates following utilities.

  • Form Utility
  • Time Utility
  • Place Utility
  • Ownership Utility

Market, Marketing, Marketer, and Prospect

Market: It consists of all potential customers sharing a particular need or want who might be willing and able to engage in exchange to satisfy this need or want.

Marketing: It is social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging product and value with others.

Marketer:  He is one who seeks one or more prospects (buyers) to engage in an exchange. Here, seller can be marketer as he wants other to engage in an exchange. Normally, company or business unit can be said as marketer.

Prospect: It is someone to whom the marketer identifies as potentially willing and able to engage in the exchange. Generally, consumer or customer who buys product from a company for satisfying his needs or wants can be said as the prospect.