Needs, Wants, and Demands

In simple Bangla, these terms translate to প্রয়োজন (Need), চাওয়া (Want), and চাহিদা (Demand). While they may seem similar in Bangla, they carry distinct meanings in marketing. A marketer must understand these differences to design effective strategies and decide what, where, and how to market a product.

Needs are the essential things a person feels deprived of to live or survive—these can be physical, psychological, or social.

For example, when you're hungry, you need food; for shelter, you need housing.

The basic human needs for survival include food, clothing, and shelter, but needs are not limited to these. Humans have evolved beyond just surviving. As a result, needs have also expanded and evolved.

Abraham Maslow categorized human needs into five levels, known as Maslow’s Hierarchy of Needs:

Physiological Needs:

Basic survival needs like food, clothing, shelter, water, etc.

Safety Needs:

Needs for physical, familial, social, and financial security.

Social Needs:

Needs for love, affection, friendship, and a sense of belonging.

Esteem Needs:

Needs for respect, recognition, and status—people want to stand out.

Self-Actualization:

The desire for personal growth and leaving a legacy through one's work, even after death.

Marketing Perspective on Needs

Marketers categorize needs into five more nuanced types:

Stated Needs:

What people say they want—e.g., "I need a laptop."

Real Needs:

The actual reason behind the stated need—e.g., for video editing or gaming.

Unstated Needs:

Expected additional services—e.g., after-sales service for the laptop.

Delight Needs:

Extras that make customers happy—e.g., getting a free gift with a laptop.

Secret Needs:

Hidden desires—e.g., wanting a MacBook for social prestige over another brand.

A marketer must understand these layers of need, analyze the customer’s psychology, and accordingly design the product and marketing strategy.

Does a Marketer Create Needs?

A marketer cannot create needs but can influence wants.

Needs are fulfilled through wants. Wants give us satisfaction. Human wants are limitless. Consumers are willing to exchange money for satisfaction.

Example:

You need to write, so you need a pen. But your want might be a high-quality pen.

You need shoes, but your want might be a durable pair.

Wants are influenced by environment, society, culture, thoughts, and reality.

Cultural differences affect wants. For instance, wedding attire in Western countries is different from South Asia, and even within regions, there are variations. So anyone starting a wedding clothing business must understand the local culture and preferences.

Marketers try to influence wants.

Example:

You're thirsty. You could drink water or coconut water.

But due to soft drink advertising, you choose soda, believing it will refresh you. That’s marketing influencing your want.

When a person has purchasing power and wants something, it becomes a demand.

Demand is closely tied to affordability.

Example:

Many people want an iPhone, but only those who can afford it create real demand. For others, it remains a desire.

In business, demand exists only when the consumer has the ability to pay.

If we say a product has high demand, it means many people can afford to buy it.

Marketers assess purchasing power and determine their target customers accordingly.

Example:

Apple doesn't try to sell iPhones to everyone—only to a niche.

On the other hand, MI designs affordable phones targeting the mass market.

Negative Demand:

Product or service is needed but people don’t want it—e.g., regular dental visits.

Declining Demand:

Decreasing over time—e.g., typewriters.

Irregular Demand:

Seasonal or time-bound—e.g., umbrellas, blankets.

Unwholesome Demand:

Harmful but highly desired—e.g., drugs.

Full Demand:

Consistent and steady—e.g., daily essentials.

Non-existent Demand:

Product/service exists but people are unaware—e.g., new technologies or courses.

Latent Demand:

People have needs, but current products don’t satisfy them—e.g., smartphones replacing feature phones.

Overfull Demand:

When demand exceeds production capacity.

A marketer's biggest challenge is to:

• Understand customer needs
• Define or influence wants
• Convert wants into demand for the product

Sometimes people aren't even aware of their needs. Marketers must educate the customer about those needs before selling.

Most people in Dhaka eat roti for breakfast.

• Roti = Need
• High-quality wheat roti = Want
• Packaged wheat brands promoting safety and quality = turning want into Demand

People want to keep money safe, so they choose banks.

• Need = security
• Want = trust in banks
• Demand = banks offer schemes, increase customer confidence, and earn deposits

Busy people use social media to maintain connections.

• Need = social communication
• Want = easy tools like Facebook/Twitter
• Demand = widespread internet makes it achievable

For social status, people buy luxury items.

• Once needs and wants are met, people seek prestige
• Rolex, iPhone = for those who can afford their desires → creates demand

Marketers cannot create needs, but they can influence how you fulfill them.

Example:

You’re hungry (need), you could eat rice or bread. But you see a KFC ad and choose to eat fried chicken. That’s marketing influencing your want.

Another example:

You need toothpaste.

Which brand you buy depends on how marketers influence you—with price, quality, or benefits. herefore, depending on what is said or which aspect is emphasized to you, a marketer can influence your decision-making. That is why in marketing, understanding the difference between needs, wants, and demands is extremely important.

• Need is what a person feels is lacking in order to survive—these can be physical, mental, or social.
• Want is how a person expresses the desire to fulfill a need, and this is influenced by culture, environment, and individual preferences.
• Demand arises when a person not only wants something but also has the purchasing power to acquire it.

A marketer must understand:

• What are the real needs of their target customers?
• How those needs transform into wants based on cultural or individual factors.
• Who among those people has the ability (financial power) to fulfill those wants—thus turning them into actual demand.

Once these are clearly identified, a marketer can:

• Design the product to fulfill those needs/wants.
• Plan marketing strategies to appeal to those with actual purchasing power.
• Influence consumer wants by aligning with their desires, emotions, and aspirations.