Marketing - Assesing value at different Need levels

What are Needs, Wants, Demands and Desires with respect to Marketing?

When learning marketing, we try to serve our solution (or value) to our target market at different levels of needs. I will be using definitions to elucidate my point about how they differ. Human being are satisfied with certain solutions to their problems because of how important it is to their physiology and psychology. 

Such as basic necessities of food, water, and shelter.  A need is essentially states of DEPRIVATION. When one is DEPRIVED of Nutrition, they need to address that issue otherwise they might, or most likely, DIE.

But in marketing, needs are not addressed right away. Here is an example. If I am hungry, I should ____. EAT you say? WROONGGG!!! Let us try again. If I am hungry, should I go down to the kitchen and start baking a cake? The result would be my wife waking up from the noise, coming downstairs with a baseball bat, and finally breaking my shins for causing her to be scared.

So then. If I am hungry........ (deeep breath). I need to SATISFY MY HUNGER. If I am driving down the highway at 100 Km/H and I am tired and feel sleepy, I need to sleep? Incorrect. I need to satisfy my fatigue.

How do I satisfy my Need(s). Remember, Needs are states of deprivation. You can have a look at Uncle Maslow's Triangle of Needs. (it's actually Hierarchy of Needs). We humans have different levels of Needs that need to be addressed. 

• I am hungry (level 1), I need to satisfy my hunger. (nutrition or patience)
• I am in danger (level 2), I need to satisfy my insecurity. (shelter or protection)
• I am lonely (level 3), I need to satisfy my loneliness. (company or companionship)
• I am insecure about myself (level 4), I need self-esteem or satisfy my insecurities.

You get the idea.

Then we move on to WANTS. Wants are Needs, but backed by Culture and Personality.
Hence, if I am hungry, I need to satisfy my hunger. Therefore, I WANT to eat a cheeseburger. Makes sense? Wants are depended on your culture, your upbringing, and the experiences that have shaped your preferences in life.

Simply put, wants are the INSTANCES of NEEDS. Need are a generic state.

Then we move on to DEMANDS. Demands are the consumers' purchasing power. But don't let this confuse you. In today's day and age, people don't simple purchase things rationally. If everyone were rational, who would buy expensive jewellery, sports cars, and useless gadgets like Apple I-Phones. 

Demands are more of an economic function and purchasing power is linked to disposable income. People do get loans as well linked to Interest Rates. Loans for a house (mortgage), for a car, for even micro-loans for renovation of their apartments, or buying a television set. They may not have the disposable income to spend at that moment, so they use financial services to address that need. 

But since we as humans are IRRATIONAL and buy goods or services that cannot be justified but simple to validate our feelings, ego, and FANTASIES, then the demands become also irrational. (for more on this, read Dan Ariely's Predictably Irrational).

When we listen to music, we imagine that we are dancing to it. When we watch a hero fall, we cry for them. When we see a beautiful woman, we hope to seduce her. All these are FANTASIES and some brands have addressed these PROBLEMS. 

People who desire to be more seductive, sexy, confident, or just be their best, use perfumes. They could have resorted to scented soaps and deodorants. But perfumes advertise imagery of fantasies. Most of you wear perfume to work, to college, and to a date. Perfumes are expensive. More so than deodorants. Hence, we try to justify our irrational purchase with our fantasy.

Therefore, the last piece is DESIRES. Desires are Irrational Demands backed by Fantasies. 

I hope this will add some wisdom to your marketing arsenal. Let me know if you wish to add anything to this.

Professor Baber Mirza

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