Need, Desire and Demand. The fundamental of marketing is understanding clearly difference among these three. Needs are basic requirements of life like food, shelter and clothes, safety etc. they can also be identified with Maslow's primary needs or needs at the bottom most level. This is the level which is bare minimum to spend the life. Desires on the other hand are wishlist items that any human has. The wishlist can be end less. While Saints advise human being to spend their lives on needs and remain away from desires, it is the desire of products and services that is keeping the marketing alive and relevant. Imagine if everyone in this world is satisfied with needs fullfillment, who would then buy luxury products. Let us undetstand this by an example- One needs to eat food two- three times a day to satisfy his physical requirements so that he remains healthy. One may, on the other hand desire, to eat 36 varieties of food everyday. one may need only a few set of clothes, but may desire to have 100's of pairs of designer clothes. The marketing is based on the premises that one is not satisfied by fullfilling his needs only, and would buy if right kind of marketing is done to provoke him to buy. Some marketeers go to an extent of saying that they are expected to make people desire more any more. The example for this can be new age products like Mobiles, Laptops, PDA's etc. Do you think that there was a need of these products at the first place, or have these products and their features created their place in the market.
Then, what is demand? what is the difference between need , desire and demand ? we didn't ponder over this. It is actually simpler now to understand demand. The desire backed by ability to pay is demand. Let us see by an example- My transportation needs can be served by Maruti 800, I may desire to buy BMW, or Merc BenZ. Should BMW or Merc BenZ consider me into their potential customer list as of now. The answer is obviously a big NO. Even if I have desire to buy BMW, i dont have ability to pay. hence I am not a potential customer to BMW or Merc BenZ.
Now look at one of the applications of this concept in modern world. The financing option or EMI for your purchase of home, LCD, or a luxury car is basically providing you ability to purchase to convert desire to demand. the companies are gaining two fold in this, one they are creating new demand for their products and earning a commission through financing companies(Some companies have started their own fiancing divisions).
Needless to say: You may have something interesting to tell us. I have actually left a concept, related to need, desire, and demand. I expect that from you guys.
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1 comment:
i think this blog is guud platform to share views.this is really nice way to explain the difference between need,desire and demand. i have a question that needs and desires are inherent.....desires can be increased or decreased by different marketing activities but can we touch needs or we can't do anything with need. as moslow says that need increases the moment our lifestyle changes but can need be influenced by the marketing activities.
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