UNDERSTANDING THE MARKETPLACE AND CUSTOMER NEEDS
As a first step, marketers need to understand customer needs and wants and
the marketplace in which they operate. We examine five core customer and
marketplace concepts: (1) needs, wants, and demands; (2) market offerings
(products, services, and experiences); (3) value and satisfaction; (4) exchanges
and relationships; and (5) markets.
Customer Needs, Wants, and Demands
The most basic concept underlying marketing is that of human needs.
Human needs are states of felt deprivation. They include basic physical needs for
food, clothing, warmth, and safety; social needs for belonging and affection; and
individual needs for knowledge and self-expression. Marketers did not create
these needs; they are a basic part of the human makeup.
Wants are the form human needs take as they are shaped by culture and
individual personality. An American needs food but wants a Big Mac, fries, and a
soft drink. A person in Papua, New Guinea, needs food but wants taro, rice, yams,
and pork. Wants are shaped by one’s society and are described in terms of objects
that will satisfy those needs. When backed by buying power, wants become
demands. Given their wants and resources, people demand products and
services with benefits that add up to the most value and satisfaction. Companies
go to great lengths to learn about and understand customer needs, wants, and
demands. They conduct consumer research, analyze mountains of customer
data, and observe customers as they shop and interact, offline and online. People
at all levels of the company— including top management—stay close to
customers.
including top management—stay close to customers:5 Target’s energetic
CEO, Brian Cornell, makes regular unannounced visits to Target stores,
accompanied by local moms and loyal Target shoppers. Cornell likes nosing
around stores and getting a real feel for what’s going on. It gives him “great, genuine
feedback.” He and other Target executives even visit customers in their homes,
opening closet doors and poking around in cupboards to understand their product
choices and buying habits. Similarly, Boston Market CEO George Michel makes
frequent visits to company restaurants, working in the dining room and engaging
customers to learn about “the good, the bad, and the ugly.” He also stays
connected by reading customer messages on the Boston Market website and has
even cold-called customers for insights. “Being close to the customer is critically
important,” says Michel. “I get to learn what they value, what they appreciate.”
