Impact on consumers and the formation of needs for a product or service in the market is one of the key tasks of marketing. Demand means the need to consume goods and services in specific market conditions.
Market demand concept
Demand is one of the key market indicators, it denotes the need, which is supported by the real purchasing power of the population. The demand for products arises due to the formed needs of buyers. After all, every person, under the influence of certain factors, is forced to acquire something.
According to D. Traut's book "22 Immutable Laws of Marketing", marketing is not a battle of products, but a battle of perceptions.
The most popular in marketing is Maslow's theory, according to which the following levels of needs are distinguished, which motivate a person to take action:
- physiological needs of consumers (basic);
- needs for providing comfort;
- social needs;
- needs for self-esteem;
- needs for self-realization and self-expression.
Each product (or service) that is sold on the market is aimed at meeting certain needs and has value (utility) for buyers. Marketing distinguishes between the concepts of total and marginal utility. Marginal utility expresses the degree of customer satisfaction that occurs after all the goods have been consumed.
In every market, the law of diminishing marginal utility is implemented. Its essence lies in the fact that each subsequent unit of goods brings the consumer less satisfaction than the previous one.
Classification of market needs
In its most general form, the following groups of needs can be distinguished:
1. Natural need - is formed under the influence of the natural needs of a person. The choice is based on the traditions and habits of the given cultural environment. The influence of the manufacturer (or seller) on the needs in this case is not significant. However, producers can create such natural needs themselves. For example, shaping the demand for dairy products, making their consumption traditional.
2. Forced need arises if the goods are acquired forcibly. For example, this type includes the purchase of prescription drugs.
3. Stimulated demand is formed under the influence of producers (sellers). Any purchase decision-making process begins with the formation of a need for a product and its awareness. Only then follows the search for information about the product, selection and comparison of options, and finally, the purchase itself. The choice of a particular product in this case depends on the effectiveness of communications with the consumer on the part of the manufacturer.
The first thing to start with a market research is to determine the needs of consumers. Moreover, it is advisable to do this taking into account their segmentation. Typically, such criteria are gender, age, lifestyle, economic and social status. This segmented approach allows you to identify the needs of the target audience, which the seller is targeting, and to pursue a more effective targeted marketing policy.
In marketing, it is customary to distinguish between buyers and consumers. Buyers are people who make a purchase directly. Consumers are a broader concept that implies market participants who satisfy their needs.
For a comprehensive study of needs, the following parameters are analyzed:
- purchase motives;
- the most important properties of the product and related parameters (for example, service);
- the desired final result from using the product;
- consumer problems that they would like to solve with the product;
- immediate willingness to buy goods;
- the conditions under which the consumer will buy the product (price, proximity to home, etc.).
Based on the research carried out, a portrait of buyers is created, which forms the basis of the marketing communications model.
