Need recognition is not only an important concept in consumer buying behavior but also in marketing. In this lesson, you’ll learn about need recognition and related marketing concepts.
What Is Need Recognition?
Need recognition is the first step in consumer buying behavior and is also called problem identification.
It occurs when a consumer discovers an unmet need that must be fulfilled.Let’s take a moment and discuss the conceptual difference between a need and a want, since the distinction has important implications for marketing. A need is a specific requirement you have to live and function in society. Needs can be physiological, personal, or socio-economic.
Examples of needs include food, shelter, transportation, wealth, power, and social status. A want, on the other hand, is a means by which needs are satisfied. A steak fulfills the need for food, a house fulfills the need for shelter, a car fulfills your transportation needs, investment products can provide you wealth, and some products indicate power and status.
Relevance for Marketing
Marketing is centered around determining needs and developing, promoting, and distributing products and services that fulfill them.The marketing process involves several steps revolving around needs:
- First, marketers will try to identify needs through marketing research.
- Next, marketers will develop products and services that meet consumer needs according to consumer preferences – consumer wants.
- Third, the promotion phase begins where you try to induce consumers to purchase the product or service by demonstrating that it meets their needs according to their preferences. In other words, you try to convince them your product is what they want to fulfill their particular need.
- Finally, you arrange for the distribution of the product or services. Without proper need recognition during the first step, your product or service is probably doomed to fail.
Need recognition is an important concept to understand in marketing. It’s the first step in the consumer buying process where a consumer identifies an unmet need that has to be fulfilled. A need is something that a consumer needs to live and function, while a want is a means to fulfill the need.
Marketing is all about discovering unmet needs and developing products that meet the needs. If the product or services matches consumer preferences, the consumer will want it to serve his or her need. The steps in the marketing process include identifying needs, developing products or services that meet the needs, promoting them, and distributing them.