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17/10/2015 03:38:01 PM

NEED-WANT-DEMAND

a. A need occurs when a person feels (Internal) deprived of something (out of balance) physiologically or psychologically.

1) marketing does not create the need for a product. It exists already.

2) assessing consumer needs requires listening carefully to prospective consumers.

3) Maslow’s Hierarchy of Needs: Abraham H. Maslow felt as though conditioning theories did not adequately acapture the complexity of human behavior. In a 1943 paper called A Theory of Human Motivation, Maslow presented the idea that human actions are directed toward goal attainment. Any given behavior could satisfy several functions at the same time; for instance, going to a pub could satisfy one’s needs for self-esteem and for social interaction. Maslow’s Hierarchy of Needs has often been represented in a hierarchial pyramid with five levels. The four levels (lower-order needs) are considered physiological needs, while the top level is considered growth needs. The lower level needs need to be satisfied before higher-order needs can influence behavior. 

                         ·        Self-actualization – morality, creativity, problem solving, etc.

·        Esteem – includes confidence, self-esteem, achievement, respect, etc.

·        Belongingness – includes love, friendship, intimacy, family, etc.

·        Safety – includes security of environment, employment, resources, health, property, etc.

·        Physiological – includes air, food, water, sex, sleep, other factors towards homeostasis, etc.

b. A want is a learned response to a need-satisfier (External) that is shaped by a person's knowledge, culture, and individual personality.(e.g in marketing. usually in the form of a product that has been promoted).

c. Demand is function of the potential consumers that make up a MARKET, which is people with the desire(WANT) and with the ability to buy (PRICE/PLACE) a specified product. The relationship could be described by the following Cause-Effect Flow:

A product failure may arise when there are not enough consumers willing to buy a product from a firm at a price that gives it enough profit to justify continuing to produce it (INSUFFICIENT DEMAND).