Dr. Robert Lahm
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Needs and Wants
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Marketing is based on “needs” and “wants”
Some basic needs include food, clothing, and shelter
– but is that all there is to it?
No. Let’s take clothing for example – you are all
wearing brands.
What are the brands you are wearing?
More importantly (for marketers), why did you
select those brands? Was it the “look” (to be stylish),
or the features (pockets, Velcro), or the price, or
some other reason (utilitarian – keeps you cool or
warm relative to the weather)?
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Needs and Wants
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Wants distinguish specific attributes of a product or
service.
We mentioned food. Do you want just any food?
“You can live on it”: bread, rice, pork (but some cultures
prohibit certain foods).
Describe your ideal meal.
Is it fast to prepare? Is it prepared for you? How much
does it cost? Is it quick? Does it really matter all that
much, if you are health conscious, and watching your
diet?
What are the diet plan commercials really selling
(regaining your looks)?
Story about “just put the food in the bag” (I don’t care to
taste it).
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Without purchasing power (the ability to
actually buy) a “want” never becomes a
demand.
You may want a Mercedes. Everyone in this
room may want one, too.
But, market “demand” can only occur if a
sufficient number of customers – with the
ability to pay – and the willingness to do so,
exists.
(Story about “qualifying” customers for real
estate; 4SaleByWeb.com)
One overly enterprising “entrepreneur,” a glass
window installer, was recently in the news.
He created demand. How?
By cruising the streets and breaking out the
storefront windows of prospects.
He would even call them from nearby, using his
cell phone, and let them know that they could
have their broken glass replaced.
(He’s now in trouble with the law).
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A product (synonymous with service in this
discussion thus far) presents a “solution” that
may in fact (or may claim to) satisfy a need or
want.
If enough customers have the ability and
willingness to purchase the “solution” that a
product or service offers, then it can be said
that there is demand.
In one sense, a product is a “bundle of
benefits” (if you are developing yours
effectively).
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Entrepreneurial Marketing must start with identifying
problems, and creating solutions.
Simple, right?
No – not so fast!
I have a solution for all those individuals who want
that Mercedes: jogging shoes.
They’re cheaper than a Mercedes, better for you healthwise, fashionable, comfortable, and they’ll get you
where you are going.
Why do you not like my solution? What’s so great
about a car? It only takes you from “point A to point
B,” just like the shoes.
(Discussion about benefits of cars, generally, and
Mercedes cars, specifically.)
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Products and services are typically “sized-up”
by consumers as they consider whether or not
their needs and wants might be satisfied, and
how well.
In choosing an automobile, what is are the
most important considerations for you?
Let’s try some basic features (and benefits):
Speed, gas mileage, number of doors,
reliability, cost of ownership (list as many as
you can).
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I’d like to sell you a soft drink.
The problem is, I really don’t
have a container for you.
Can’t you just drink it (and not
gripe)?
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What’s so important about that
package?
Why do we want to buy a product
“new in a factory sealed box”?
 What comes in the box?
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Product offerings typically involve physical
goods themselves, services delivered with
those goods, and “ideas.”
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At a restaurant, the entrepreneur may sell: “goods”
(burgers and fries);
“services” (a place to eat, food is cooked for you);
And the “idea.”
What’s the “idea” at a fast food restaurant” (Duh –
speed!) What about Cracker Barrel? What about the
“Heart Attack Grill?”
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Customers expect a level of product and performance
that is consistent with explicit and implicit propositions
conveyed through product claims.
For instance, what do you expect from any copy
machine?
The “delight” factor may be created by unexpected (or
understated) acts of superior – differentiated – service.
With a car, for example, including a manual, mats,
touch-up paint, a spare key, a road map, and a picnic
basket (with a coupon for a “to go” meal) would be an
excellent way for a car retailer to provide “extras” by
throwing them in (most dealers are too short-sighted to
do this).
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Many times, a customer or client may state a need,
but may actually be “wanting” a solution.
Home Depot sells drills, in many sizes and
configurations.
When a customer visits the store, the stated need
may be, “I’m looking for a drill.”
What is the real need?
The business that offers the best solution,
considering many factors is the best company (in
some cases, that may even include a referral to
another business that can do a better job in
meeting a customer’s needs).
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Al Ries and Jack Trout wrote the marketing
classic, Positioning - The Battle for Your Mind
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(a good summary, here)
Information overload was a key premise of the
authors’ work.
Brands must cut through the mental clutter to
attain a unique “position,” in the mind of the
consumer:
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“Positioning is not what you do to a product. Positioning
is what you do to the mind of the prospect. That is, you
position the product in the mind of the prospect.”
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Strategies for positioning:
Strengthen an existing brand; While Hertz was thought
of as the world’s largest car rental agency, Avis
cleverly took a different (and unique) position: “We’re
number two, we try harder.”
Search for and claim a new and unoccupied position:
light beer, lemon dish soap, gold, platinum, or titanium
credit cards, (food that’s very, very bad for you!).
Hint: try the game of “opposites.”
Hint #2: Focus on a core strength, such as fastest,
cheapest, most expensive, exclusive (e.g., members
only), reliable (guaranteed for life is the brand
positioning of Craftsman tools from Sears), friendliest
service.
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Marlboro was originally a “woman’s cigarette” (“Mild
as May”)
Stolichnaya Vodka repositioned other brands, such as
Smirnoff and Wolfschmidt, by highlighting their
origins in the U.S. and using an authenticity appeal for
its own brand: “Stolichnaya is different. It is Russian.”
Wendy’s attacked consumers’ perceptions about other
bigger hamburger chains with one of the most famous
commercials of all time: “Where’s the beef?”
Charmin positioned its brand as being “Squeezably
soft!”
FedEx changed the entire shipping business with a
reliability and speed promise: “When it absolutely,
positively has to be there overnight.”