Needs Wants and Demands

Definition:

Need, Want, Demand seem to be very closely related words, however, they all differ with respect to their meaning.

Need - Necessity. Something that is required to survive or to sustain. For example, food, water, shelter, NOW INTERNET also, etc. An extended part of needs today have become education and healthcare. Generally, the products which fall under the needs category of products do not require a push. Instead, the customer buys it themselves. But in today's tough and competitive world, so many brands have come up with the same offerings satisfying the needs of the customer, that even the “needs category product” has to be pushed in the customer's mind.

Example of needs category products/sectors – Agriculture sector, Real Estate (land always appreciates), FMCG, etc.

Want - Desires. Things without which we can survive, but we need them for higher satisfaction. Wants are not a mandatory part of life.

For example, I want the iPhone 11S, though I can do without it. Android MI Note 7 also fulfills my Needs perfectly well. 

Another example could be we need to take a bath every day. But I am sure you take bath with the best soaps. You don't need a good smelling soap, but you will definitely use it because it is your want. 

Another example could be an Indian in Kolkatta needs food but he wants Fish Currey Rice. Similarly, a man in Peshawar also needs food but he wants Kebabs with Afghani Nans.

(Human wants are unlimited! As one want is satisfied, a new one is created.)

Demand - Willing and able to buy. Things that you want to buy/consume and your pocket allows its consumption, i.e you can afford it, thus you demand that thing. When an individual wants something which is premium, but he also has the ability to buy it, then these wants are converted to demands. The basic difference between wants and demands is desire. A customer may desire something but he may not be able to fulfill his desire.

For example, I have Rs. 1000 in my pocket and I want to see a movie whose ticket is worth Rs 500 since I want it and I can afford it, I demand a movie ticket.

Example of demands – Cruises, BMW’s, 5-star hotels.

Knowing More of Demands:

• The products which can create demand are premium products and high priced
• Customer willingness is very high towards the purchase of these products
• Customer’s income levels decide whether they buy the product or not
• A product cannot create sales effectively when the buying power of the customer is not supported
• Ability to buy can convert the wants into demands
• Marketers should take production and supply decisions according to the market demand only.