2: Core marketing concepts (needs, wants, demands, value)

Core Marketing Concepts: Needs, Wants, Demands & Value

Understanding the fundamental concepts of needs, wants, demands, and value is essential for grasping the very purpose of marketing. These elements form the bedrock upon which all marketing strategies and activities are built, focusing on fulfilling human requirements and creating mutually beneficial exchanges.

Needs

Needs represent the basic human necessities required for survival and well-being. These are innate states of felt deprivation and are not created by marketers. Abraham Maslow's hierarchy categorizes them as:

• Physiological (food, water, shelter)
• Safety (security, protection)
• Social (belonging, love)
• Esteem (recognition, status)
• Self-actualization (achieving full potential)

Needs are universal and fundamental; marketing identifies and addresses them but does not invent them. For example, the need for sustenance is inherent.

Wants

Wants are the culturally and individually shaped expressions of how those needs are satisfied. While a need might be hunger (physiological), a want could be a specific type of food – a hamburger, sushi, or a vegan wrap. Wants are heavily influenced by:

• Societal norms
• Cultural background
• Personal experiences
• Individual personality

Marketers play a significant role in shaping wants through communication, branding, and product development, offering specific solutions to fulfill underlying needs in appealing ways.

Demands

Demands emerge when wants are backed by purchasing power. It's the consumer's ability and willingness to pay for a specific product or service that satisfies their want. A person might want a luxury car, but only if they have the financial resources does that want become an effective demand. Marketers analyze demand to understand market size and potential, focusing efforts on converting wants into demands among target audiences with the necessary resources.

Value

Value is the customer's estimation of a product's overall capacity to satisfy their needs and wants. It's a subjective assessment comparing the perceived benefits received against the perceived costs incurred (monetary price, time, effort, risk). Customers seek to maximize value – they choose the option they believe offers the greatest benefit-to-cost ratio. Marketers aim to build customer perceived value through the value proposition: the unique set of benefits (functional, emotional, social) they promise to deliver to meet the customer's needs better than competitors. Creating superior value is central to building strong customer relationships and achieving competitive advantage.