The 'marketing concept' proposes
that in order to satisfy the organizational objectives, an organization should
anticipate the needs and wants of potential consumers and satisfy them more
effectively than its competitors. This concept originated from Adam Smith's
book The Wealth of Nations, but would not become widely used
until nearly 200 years later.[
Marketing and Marketing Concepts are
directly related.
Given the centrality of customer
needs and wants in marketing, a rich understanding of these concepts is
essential
Needs: Something necessary for people to live a healthy, stable
and safe life. When needs remain unfulfilled, there is a clear adverse outcome:
a dysfunction or death. Needs can be objective and physical, such as the need
for food, water and shelter; or subjective and psychological, such as the need
to belong to a family or social group and the need for self-esteem.
Wants: Something that is desired, wished for or aspired to. Wants
are not essential for basic survival and are often shaped by culture or
peer-groups.
Demands: When needs and wants are backed by the ability to pay, they have the potential to become economic demands.
Marketing research, conducted for
the purpose of new product development or product improvement, is often
concerned with identifying the consumer's unmet needs. Customer needs
are central to market segmentation which is concerned with dividing markets
into distinct groups of buyers on the basis of "distinct needs,
characteristics, or behaviors who might require separate products or marketing
mixes." Needs-based segmentation (also known as benefit segmentation)
"places the customers' desires at the forefront of how a company designs
and markets products or services." Although needs-based segmentation is
difficult to do in practice, has been proved to be one of the most effective
ways to segment a market. In addition, a great deal of advertising and promotion
is designed to show how a given product's benefits meet the customer's needs,
wants or expectations in a unique way.
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