Principles of marketing

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Introduction

marketing need want

The world has changed. Today when you go to the street you see a lot of things: supermarkets, hypermarkets, groceries, and people with different haircuts, style, dressed differently girls and boys and sometimes even funny looked guys with a lot of tattoo. If you go to the restaurant, you will see vegetarians, one individual order beef, others seafood or exotic foods. There are people who prefer to go to the mountains and others prefer to relax in disco club. Why do people do that? What drive people to choose to bungee-jump off a bridge or compete on reality shows, whereas others spend their leisure time playing a tennis or gardening? According to Solomon M., motivation refers to the processes that lead people to behave as they do. It occurs when a need is aroused that the consumer wishes to satisfy. (Solomon M.R (2013). This need creates a state of tension that leads the consumer to attempt to reduce or eliminate it. It is important for marketers to recognize that products can satisfy a range of consumer needs. For the beginning of my essay I would like to start with answering to the questions what are needs, wants and demands and how we can differentiate them from each other? Then, I will observe Maslow's hierarchy from the bottom to the top. I will also try to analyze the situation in Kazakhstan and match «Maslow's needs» to the Wants of person and the ability to create Demand for them.

1. Needs

Needs are states of felt deprivation (lack of something), it is the things that we require in order to feel a part of community and achieve good welfare. We are born with a need for certain elements. For example: food, water, air, health, safety and security. According to Kotler (2012), «needs are the basic human requirements». (Kotler, P., 2012) According to the Solomon M.R we distinguish biogenic psychogenic and utilitarian needs. Biogenic needs are basic needs which are necessary to survive for human beings. Psychogenic need is a need for power, status and affiliation. Physchogenic needs reflect the influence of culture and their effect on behavior is different from one environment to another. Utilitarian needs are subjective and experimental. It focuses on the products that meet our needs for excitement, self-confidence, fantasy in order to escape from routine aspects of life. (Solomon M.R, 2007). There are also other many kinds of needs, like: stated, unstated, real, and etc. Psychogenic need itself consist of 20 needs. In case of needs, we have also distinguished 3 classes of variables that influence consumer behavior. They are: stimulus, response, and intervening variables. Stimulus variables cause the sensory entrance to consumers, while response variables produce resulting mental or physical reactions of individuals (for example, the act of purchasing a product or forming attitudes about a product/service) who are influenced by the stimulus variables. Intervening variables make influence the effect of stimulus variables on consumer's response. Intermediate variables are internal and include values, mood, knowledge, perceptions, attitudes, motivation, training, and unconscious variables such as intelligence, memory, process, and genetics (Bednall & Kanuk 1999; Goulding 2006; Lawson et al 1996)

There are Stimulus variables can be extrinsic or intrinsic, for example stimulation of consumption may arise as a result of (Goulding 2006):

· Biological needs (the need to eat to satisfy our hunger).

· Utility needs (the need to purchase a washing machine to help our daily chores, the need for a car for daily travel to the workplace etc).

· Aspirational needs (the desire to acquire a degree to secure a better paid job etc.).

· Personal «wants» (induced by past experience, by exposure to information/media advertising).

· Fiction: fantasy (romance).

· Personal motives (acquiring new skills or knowledge etc.).

· Hedonism (pleasure seeking)

Socio-cultural environments and marketing activities (especially brand influence) influence consumption (Bednall & Kanuk 1999; Saren 2006) as do new products/services to markets. Technological developments can take the world by storm (like the Sony Walkman) while others failed or lie dormant and then grow explosively on rediscovery (like the fax machine). Often, most new products/services achieve slow market penetration at first, and then their adoption grows more quickly, but later slows again (S-curve pattern). (Seward, 2009)

2. Hierarchy of Maslow

Physchologist Abraham Maslow explained why people are driven by particular needs at particular times. He developed a theory of personality that has consist of 5 levels of basic needs. Beyond these needs, higher levels of needs exist. According to him, person should satisfy his or her basic needs, before specific ones. Maslow's basic needs are as follows:

· Physiological Needs: oxygen, food, water

· Safety Needs: security, protection

· Needs of Love, Affection, and Belongingness: family, friendship

· Needs for Esteem: respect from others, self-respect, self-confident

· Needs for Self-Actualization: self development, realization

Physiological needs are biological needs. It consist of needs for oxygen, water, and a relatively constant body temperature. They are basic needs because if a person were deprived of all needs, the physiological one may come for satisfaction of human being. This needs create the biggest area for marketing and marketers to satisfy all these physiological needs of people. For example, I want to eat, and different restaurants like King Burger, KFC may satisfy me.

Safety Needs: When all physiological needs are satisfied and are no longer controlling thoughts and behaviors, the need for safety may arise. Examples of safety needs can be life during the peaceful time, with no war; live in a wealthy and peaceful family with no domestic violence and financial problems, so you can be sure that you don't have to worry about where to get food, clothes and shelter; to have a good well-paid job, in order to feel safe;

Needs for Love, Affection and Belongingness: After satisfaction of physiological and safety needs next comes needs for belongingness. Due to Maslow people seek to overcome the feelings of loneliness and alienation. By the way, According to Solomon M.R, many Asian cultures value belongingness needs more highly than self-esteem needs. For example, for me needs for love can be good relationship with my family, then with friends and boyfriend, satisfaction with the relationship with co-workers, group mates.

Needs for Esteem: When the first three needs are satisfied, self-esteem becomes dominant, which means that people need high-level of self-respect, and respect from others. It makes people to be self-confident and valuable as a person in the world. For example, in my case it will be graduation from the Kimep with good grades and getting a high salary job.

Needs for Self-Actualization

Self-actualization needs come after all foregoing needs. Abraham Maslow describes it as becoming master of what person can do or was born to do. For example, I am good in mathematics, so in the future I will become a good specialist in financial sphere.

3. Wants

Wants are the form that needs take as they are shaped by culture and individual personality, it is those things that we would like to have or do or things that we desire. Examples of wants include: traveling overseas, owning car or house, having private health insurance and getting a high-paid job. To differentiate wants from the needs we can by taking simple example from the daily activity. For example, I take a shower every day by using flavored soap which I buy it from the shop as the best one. In this simple example, to take a shower is my need, because it is mandatory part of our life. My want is to use best soap, although I can use any soap I will definitely use that one, which smells good. The same thing we can say about children who choose chocolate instead of milk or something healthy. Basic human needs cannot be changed, but wants can be. The reason is that people may refuse from going to the restaurants, but they can not refuse to eat at all. That is why wants are basically finding a way to satisfy human needs. The passage of time needs remain constant and wants changes. Because if consumer buy only white bread during some period of time, maybe, after some time he will decide to grow thin and start to buy brown tommy. That is why it is very important for marketers to define wants of customers and their preferences.

marketing need want

4. Demand

Demands are wants backed by buying power. The examples of demands are: Cruises, BMW's, 5 star hotels. Human being have unlimited wants but resource are limited in the world. It is possible that all of people desire to buy big houses and yachts, but it is not possible that each human being get the desire things in the world. Wants are wishes of human, buying power will convert these wants to demand. To understand better, let's take an example. I want to buy a big apartment, car and relax each summer in the Caribbean islands. But the main question: May I afford it? The main issue is the ability of the person to afford the thing which he desire. I wanted to study at KIMEP and live in my own flat, so my parents realized my wishes by paying money for my education and for my flat. It means that they converted my wants into demand. So, Demands depend on person's ability to pay, income, and can be defined as making person's wants to become true by person's or somebody else's money.

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