Identifying Customer Needs and Wants

Introduction

• Importance of understanding customer needs and wants.
• Good products/services are not enough if customers don't feel the need or want them.

Needs vs. Wants

Needs

• Definition: Solve a problem (real or imaginary).
• Example: Hunger = need to eat.

Wants

• Definition: Emotional needs; desires for rational/irrational reasons.
• More powerful in selling than needs due to emotional pull.
• Example: Happiness from writing on a clean whiteboard.

Marketing Strategy

• Don't just focus on needs (e.g., "You need this whiteboard").
• Also address wants (e.g., emotional benefits like relief and happiness).
• Common emotions used in marketing: fear, anxiety, excitement.
  • Example: Home security companies use fear to market their products.

Steps to Identify Customer Needs and Wants

Step 1: Identify Your Customers

• Determining your ideal paying customers is crucial.
• Key questions to define your customers:
  1. Who are they?
     • For B2C: age, gender, race.
     • For B2B: what does their company sell and to whom?
  2. What do they do?
     • Occupation (blue-collar, professors, entrepreneurs).
  3. Why do they buy?
     • Insights into competitors’ products can reveal needs/wants.
  4. When do they buy?
     • Identify seasonal buying patterns.
  5. How are they buying it?
     • Online vs. offline purchase preferences.
  6. How much money do they have?
     • Important for pricing strategies.
  7. What makes them feel good about buying?
     • Emotional insights on satisfaction from your product/service or competitors'.
  8. What do they expect of you?
     • Fulfillment of needs and desires.

Step 2: Gain Insight into Customer Needs and Wants

• Regular Conversations:

  • Engage with customers to learn about their needs and wants.
  • Important to listen actively to their responses.

• Surveys and Feedback:

  • Utilize surveys to gather customer opinions on your products/services and competitors.
  • Crucial for identifying unmet needs or wants.

• Social Media Listening:

  • Monitor social media for customer discussions about needs and desires.
  • Tools to use:
    • Google Alerts: Receive notifications on specific keywords.
    • Mention: Tracks social media mentions and keywords.

Common Customer Needs

1. Functionality and features
2. Price
3. Time and convenience
4. Terms of service
5. Appearance
6. Design
7. Status and identity
8. Reliability and durability
9. Performance
10. Safety
11. Sustainability

Example: Henry Ford

• Customers may ask for what they think they want (e.g., faster horses).
• Ford innovated by introducing the automobile instead of faster horses—highlighting that customers may not always know what they need.

Conclusion

• Understanding customer needs and wants is essential for effective marketing.
• Engage with customers, ask questions, and monitor trends for deeper insights.
• Encourage feedback and interaction through comments or additional resources.