Needs,wants and demands are the basic and core concept of marketing. It is essential that marketers understand and grasp concept in order to offer the right products and services to the customers.
What are Needs?
Needs are the basic requirements of human being.Marketers have to do less efforts to determine needs of customer. Needs are not created by marketers because its already exist in nature. Food, shelter and cloths are the examples of needs.
What are Wants?
Wants are the desired which are not necessary for survival of human beings. Marketers play active role to create wants by customizing needs. For example, Many people want to have BMW car but most of them don’t have enough money to purchase it. An American can eat food but want to eat burger and French fries.
What are Demands?
Wants that are backed by purchasing power or money is called demands. Many people wants to have expensive car, house and cloths but only few are able to buy it. Organization can generate healthy revenues and profits by finding out the niche markets having strong purchasing power.