The core concepts of marketing comprises of the following: 1) Need Want and Demand 2) Product and Services
3) Value, Cost and Satisfaction 4)Exchange, Transactions and Relationships 5)Markets 6)Marketing and Marketers
Out of the above six, we will discuss the impact of need, want and demand on marketing. Let us first understand each of these terminologies:
What is Need?
Need is a state of felt deprivation of some generic satisfaction arising out of human condition. It indicates a perceived lack of something. It brings about awareness in human being that there is something that is required but not in possession. Need generally comprise of the physical and social needs. Food clothing and shelter are categorized as need for human beings.
What are Wants?
Want is specifically a desire to have a possession of something. It is the specific satisfier of the ultimate need. It is generally shaped by culture and personality. When you feel hungry, you want to go to a good restaurant instead of having the canteen food. The fulfillment of your hunger through food is your need however; your choice to go to a good restaurant is your need.
Wants become demand when it is associated with the purchasing power. If you have a good budget to go to a restaurant for lunch, you demand to go to a 5 star hotel. You would not compromise on your preference since you have a good buying power. The demand for a given product is thus a function of need, wants and the purchasing power.
The Product and Services that you see flourishing in the market is not because of the need or want but because of the demand of it.
Marketing generally comprises of satisfying the human need and wants through its various products and services. Markets are only generated when there is a need and want for something. These are the two raw factors that govern a market. Out of the two, want is something that is given more importance in marketing since need can be limited but wants are limited and varying. This gives marketing an opportunity to produce different products and services.
What is Demand?
Demand is something which has the most influencing effect on marketing. Demand is associated with the purchasing power. So, marketing will be more effective if the potential consumers have the willingness/desire of something with the ability to buy the same.