- Needs and Wants: The satisfaction of buyers’ needs is at the heart of a market economy, and is the core theme of Marketing. To put it more simply, a need is a feeling of being deprived of something desirable.
Wants are somewhat different. While needs are basic to human beings, (since nobody ever needs to tell us that we need to feel hungry, thirsty, etc.) wants are not. Later in our life when we become part of various informal and formal groups (family, friends, school, club, workplace, etc) we develop the concepts of friendship social approval, beauty, and so on. These are our acquired needs.
Wants exist for those objects that can potentially satisfy a need. A visually impaired person can either wear spectacles, contact lenses, or now he can go in for corrective surgery.
- Product / Service: If we use marketing parlance a product is anything that can satisfy our needs and wants. That is, it could be a physical object, or a service, or an idea which can be offered to a potential user for adoption / practice / consumption. By studying consumer buying behaviour companies can identify needs that can be met by offering a suitable product. Incidentally, a customized product is one, which is made according to individual customer’s specifications.
- Exchange: A marketer makes an offer because he hopes that the buyer will accept it. And in turn the buyer will give something of value to the marketer. Whether or not an exchange will take place would therefore depend on a match/ mismatch between the gain (the satisfaction receivable) and the sacrifice (the price payable) in customer perception.