Needs Wants and Demands: Marketing Concept

Needs Wants and Demands: Marketing Concept

To begin with, needs, wants and demands are tied. We, humans, have infinite wants and
demands.

When the feeling of deprivation emerges and our mind requires something, we call it needs.
Now, let’s have an in-depth discussion about all three of them.

Needs
The easiest explanation of the concept “needs” is the basic human requirements like shelter,
clothe, food, water, etc.
These are essential for human beings to survive.
If we take the topic further, other needs are education, healthcare, insurance, pension, etc.
Basically, things that we can associate with “needs” don’t require a boost because these are the
products and services people always buy (for example, people who are into home security,
always purchase Arlo or Arlo Pro Security Cameras).
Though, don’t feel relieved if you’re planning to promote a product or a service that falls under
the “needs” category.
In the 21st century, thousands of brands are promoting the same products and services from
the needs category.
In other words, there are thousands of competitors trying to sell the same things you are.
In addition, needs aren’t only physical. Needs can be a social thing, for example, social class,
belonging to a certain society and need of self-expression.
Wants
This is quite different from needs.
Wants aren’t permanent and it regularly changes.
As time passes, people and location change, wants change accordingly.
Wants aren’t essential for humans to survive, but it’s associated with needs.
For example, if we always manage to satisfy our wants, it transforms into a need.
Demands
Let’s discard the boring explanation process and start with an example.
There are two options, you either buy a Samsung’s or Apple’s product.
Though, the prices are really different. The Samsung’s phone costs $150 and the Apple’s iPhone
$780.
We’d prefer to purchase the Apple product, but the question is, can we?
If we, financially, are strong enough and can allow ourselves to buy a $780 iPhone, it means
that we’ve transformed our want/need into a demand.
So, the key difference between wants and demand is desire. Consequently, for people, who can
afford a desirable product are transforming their wants into demands.
In other words, if a customer is willing and able to buy a need or a want, it means that
they have a demand for that need or a want.
Bottom Line
To say it frankly, needs wants and demands are an essential component of a marketing
strategy. It helps the marketing department to decide, whether a product effectively sells or
not.
Similarities: It’s easy to point out similarities between goods and services. Notable few are as
follows:
 As for a good, a service also needs to have a wide assortment in their offerings. A biscuit
has to be made available in different flavors and price ranges. Similarly, an airline also
has offerings like economy class or business class. This falls under the category
of Product.
 Like a good has a price, a service also has some price attached to it. If you want to sell a
biscuit you have to set a price for it. Same is the case with a seat in an airline. This falls
under the Price category.
 A good and a service is to be made available to the end consumer through different
channels. Again, a biscuit is sold through different channels like local stores, e-comm
websites, modern retail etc. so that the product is easily available to the targeted
masses. Similarly, a seat in an airline is sold through various channels like online travel
websites, direct from airport etc. This highlights the need for a
robust Distribution system in both the cases.
 The last and most obvious similarity is the need to promote both the things. It is
because the end customer should be aware of the existence and benefits offered by the
product or the service in question. This calls for an effective Promotion strategy in both
the cases.
Differences: The differences in the marketing of goods and services arise due to the following
special attributes of a service:
 Intangibility: One can’t touch or feel the services provided by an Airline.
 Perishability: Once an plane takes off with some empty seats, those seats can never be
refilled (Hence some flights lower the prices at the very end).
 Variability: A quality of service varies from flight to flight and replication is almost
impossible.
 Simultaneous production and consumption: One has to use the services offered
instantaneously as they can’t be stored for future use.
The words “client”, “customer” and “consumer” are often confused for one another and used
interchangeably (especially the first two terms). Many businesses don’t distinguish between the
three and don’t really need to either.
However, if you launched a startup or if you’ve been running a small business, and need to
plan/determine your business goals and growth, then it’s useful to know the difference. Let’s
start with (paraphrased) dictionary definitions:
 Client
Someone who uses the professional services of an individual or company. (Archaic
definitions include a dependent or someone under the protection of somebody else.)
 Customer
A person who buys goods or services from a business (which includes shops).
 Consumer
Someone who buys good and services for their personal use; or someone who eats or
uses something.
So what are the connotations of each?
Clients
A “client” implies a long-standing relationship as well as the purchase of services, solutions,

advice, etc., from (for example) law firms, marketing agencies and health care. These services
and solutions can be personalized and customized for the client.
Businesses should generally aim for clients above all, because with those come ongoing
business, loyalty, referrals, brand ambassadors and so forth. Usually a client relationship is
deeper, requires more involvement, and is more fruitful.
Customers
A “customer” suggests a one-time sale – like buying something from a grocery store,

restaurant, amusement park, etc. However there can be “repeat” customers. It’s usually only
focused on an economic exchange: the purchase of goods/products for a fixed price.
Consumers
Consumers are usually thought of as the end user – the person who actually uses the product or
service. So what’s the difference between a customer and consumer? A mother who purchases
diapers from a store is a customer, but her baby (who’ll use the product) is the consumer.
Consumer is more impersonal and often refers to the use of technological products and services
(paid or not).
Difference between transaction and exchange
A transaction is an agreement between a buyer and a seller to exchangesomething of value. ...

It's a transaction between you and the online store despite the fact that you haven't received
your order nor you've made any payment as yet

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Needs Wants and Demands: Marketing Concept

These are essential for human beings to survive.

Wants aren’t permanent and it regularly changes.

As time passes, people and location change, wants change accordingly.

 Intangibility: One can’t touch or feel the services provided by an Airline.

A “client” implies a long-standing relationship as well as the purchase of services, solutions,

A “customer” suggests a one-time sale – like buying something from a grocery store,

Difference between transaction and exchange

A transaction is an agreement between a buyer and a seller to exchangesomething of value. ...

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