NEEDS, WANTS AND DEMANDS

Today let’s discuss something which we normally talk but sometimes can’t make the difference of it i.e. Needs, Wants and Demands.

Needs are the basic requirements for human such as for air, food, water, clothing and shelter. Humans sometimes ask for the strong needs of recreation, education and entertainment.

These needs become Wants when directed to specific objects that might satisfy the need. A Bengali customer needs food but may want a fish curry, Dal with hot rice. A person in South India needs food but may want rice, Sāmbhar and curry. Our wants are shaped by our society.

Demands are wants for specific products backed by an ability to pay. Many people want a Mercedes; only a few can buy it. Companies must measure not only how many want their product but also how many are willing and will be able to pay for that product.

To make this easier to understand, let’s see below:

• I need to have rice to live – Needs 
  
  
• But I need to have Biryani – Wants 

  

  
  
• And I am able to have and want some specific Biryani like from Behrouz – Demands 

  

  
  

Markets don’t create needs: Needs pre-exist marketers. Marketers might promote the idea that a Mercedes satisfies a person’s need for social status.

Needs may be further distinguished in the below following types:

• Stated Needs - Customer wants an inexpensive car
• Real Needs – Customer wants a car whose operating cost, not initial price, is low like Alto
• Unstated needs – Customer expects a good service from dealer
• Delight Needs – Customer would like the dealer to add GPS system in the car
• Secret Needs – Customer wants friends to see him or her as a savvy consumer like to do some show off.

Responding only to the stated need may short change the customer. For an example customers did not know about tablet computers when it was launched but Apple worked hard to shape consumer's perceptions about them. To gain an edge, companies must help customers learn what they want.