Marketing definition is based on three main terms needs, wants and demands these terms sometimes create some confusion in readers mind. This tutorials will discuss the needs, wants and demands in detail to making things easy.
Human needs are states of felt deprivation.Needs are the basic requirements of human being, without these basic requirements like food, cloths and shelter no one can live life in this world. The extended form of needs are health and education which for sure every on basic need in today’s world but they come after food,cloths and shelter. Marketers play no role in creating needs, they are natural default requirements of every human being. Organization already know the needs there is no requirement for any research work to develop product which covers the needs of human beings.
Wants are the form human needs take as they are shaped by culture and individual personality. Wants are marketed by marketers in such a way that everyone feel these wants should be mandatory part of life. We can take the examples of telephone, Internet, different variety of foods and clothing these all come under umbrella of human wants.
Any person can eat food to feed himself, but he want to eat fast food, fried rice and Chinese food. Cloths are required for a person to cover himself but we can see people wearing jeans, suit just because of culture influence.
Demand is want backed by buying power, human being have unlimited wants but resource are limited in the world. Its not possible that each human being get the desire things in the world. Wants are wishes of human, buying power will convert these wants to demand.
Willingness to buy BMW is want but if you have the buying power then it becomes demand.
Manager and marketers always focus on people wants and demands to do that they conduct in depth research using number of different tools such as surveys, interviews, observation and others. That’s the reason CEO of huge company like Wal-Mart visit store to have a check on customer, talk to them, observe them to understand their needs and Wants.