Bang College of Business

MKT 3140: Intermediate Marketing Spring 2013

Assignment 1Does Marketing reflect or shape our needs and

wants?

Student: Yeraly Aidyn

ID: 20112481

Submission Date: 30september, 2014

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Content

I. Introduction…………………………………………………………………............3

II. Factors that influence human

consumption…………………………………………3

1. Needs, wants and demands. Theory of Maslow…………………………………

3

2. Role of 4Ps of Marketing………………………………………………………...5

a) Product…………………………………………………………………………6

b) Price……………………………………………………………………………7

c) Place……………………………………………………………………………8

d) Promotion………………………………………………………………………8

3. Micro environmental factors……………………………………………………. 9

4. Macro environmental factors…………………………………………………….10

5. My needs, wants and demands…………………………………………………..11

6. Marketing reflects needs and

wants……………………………………………...12

2

7. Marketing shapes needs and wants………………………………………………13

III. Conclusion…………………………………………………………………………..18

IV. References…………………………………………………………………………..20

In this world, there might be different factors that

can change ways of our lives. Majority of people considers

that the factors that change our lives should be considered

as an important part of a new developed generation. Today,

the world is so developed even any little factor might

influence on our consumption. Now, I want to pay attend on

factor that enormously changes minds of people immediately.

The marketing is a real function of a new world that plays

an important role in order to affect on needs, wants and

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demands of people. In order to understand these three

concepts, we need to deeply know about each of them. There

were a lot of people who wanted and did researches about

human needs, wants and demands. Exactly, they tried to give

an examples how these three concepts occurs on human`s mind

one by one. One of the main psychologists, who made a real

job in his life is Abraham Maslow (1908-1970). A.Maslow had

developed theory of human needs in 1943 in order to show for

people how the needs come in order to satisfy people`

wishes. Actually, the human being is an interesting creation

in this world, who always searches something in order to get

100% satisfaction to start firstly from basic needs that we

face everyday. However, after realizing our needs, we come

to from his life. In order to understand our needs and

wants, how they come to our minds we need our wants, after

all that we meet with demands. Therefore, it is not

impossible to say that these three concepts have connection

with each other. We can claim that they have connections but

they really differentiate with each other

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Needs, wants and demands: Needs is our (human) basic

requirements in order to live in this world. We can require

everything in order to survive in this life. If we look

through theory of Maslow, we can understand that the levels

of this theory created properly.

Table 1

1. Physiological needs - air, food, drink, shelter,

warmth, sex, sleep.

2. Safety needs - protection from elements, security,

order, law, limits, and stability.

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3. Social needs – love, work group, family, affection,

relationships.

4. Esteem needs - self-esteem, achievement, mastery,

independence, status, dominance, prestige, managerial

responsibility.

5. Self-Actualization needs - realizing personal

potential, self-fulfillment, seeking personal growth and

peak experiences

The behaviors of people are different as their needs.

Individuals behaviors are basically goal orientated and

drive differ. According to C.Ifedili (2012), needs are

deficiencies, which come into action to satisfy them. Also,

he claims that needs of human beings are unlimited and

insatiable, but the resources to satisfy their needs limited

and cannot be endless. If you deeply pay attend on his

opinion, we can clarify that the theory of Maslow gives

supporting information for his opinion. As I understood, the

needs come to person from basic situations. For example, if

we consider psychological needs, they are air, water, food

and sleep. These are basic needs that we require everyday in

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our life, but no one stopped only on these needs. Basically,

humans go further and further to achieve other needs such as

safety, love, respect and so on. Therefore, Maslow claimed

on his theory that when person reached first step of his

needs, he goes up to the next step to satisfy his other

wishes. There is a simple example of psychological needs,

people can need water, car, home, food, entertainment and

etc. Time by time, when we specify our needs into one object

we need decide which of type of needs we actually prefer.

After that in order to satisfy our wishes needs becomes our

wants. Simple example, someone is very hungry, and his need

might be food. Before buying food, he might want a specific

food, for instance “Turkish Doner” without onion and

cucumbers. And this is considered as wants of people, when

they decide to eat “Turkish Doner”. The last key concept of

marketing is demand. “There is always a heavy demand for

fresh mediocrity. In every generation the least cultivated

taste has the largest appetite” (P.Gauguin, 2010). If you

really pay attend on this quote, person can understand that

people performance always high. However, not every person

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can allow himself to have everything which he wanted. If we

back to our example, doner in Abay avenue is expensive than

in Tole bi. Therefore, people who cannot buy doner for

higher prices should go to Tole bi street in order to get

their needs. This is an example of demand that not all

people can satisfy their needs with demands that they cannot

allow for themselves. Therefore needs can be the same, but

the demands can be different.

Role of 4Ps of Marketing

In the marketing sphere, we know that we have 4Ps that

directly have connection with consumers. These 4Ps of

marketing are product, price, place and promotion. They

really influence on human consumption differently from each

other. In order to understand deeply how they influence on

human consumption I want to explain each of them by using

the chart which is below.

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If you look to this chart, you can understand that these 4Ps

makes a real influence on human`s mind. How? The first of

all, on this chart you see that all of them are connected

with target consumer. Target consumer means group of people

who interested in ways that can help them to reach their

needs. Now, I am going to define you how these 4Ps affect on

our consumption starting from product.

Product: Firstly, before producing something, producers

use to know what kind of products the market actually needs.

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It is very important to identify it because different types

of products affect differently on consumptions of consumers.

That can help for suppliers to influence on human

consumptions on a right way by attracting them to need and

buy exactly their products. Secondly, every product in order

to be the first on people` needs should meet with the

requirements of consumers. Attitudes of every person are

different and their requirements coincided rarely with each

other. Therefore, identifying perceptions of consumers is a

significant part of marketing in order to get needs, wants

and demands of them. Otherwise, consumers will reject and

cannot reach their needs; also firms cannot make profits by

selling their products. So, it is understandable that no one

gains from not fully made analysis about needs of consumers.

There is only one conclusion; it is creating right products

for right consumers. Meeting the demands of people means

producing right products which will meet the requirements of

consumers. In order to understand how to meet the needs of

people and influence on their consumption, companies should

think about branding, designing, packaging and serving

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people in a way that the consumers prefer. Thus, meeting the

demand of people means creating a new product for customers`

needs that they can buy it, and with the full desire will

satisfy with the product. (R.Westbrook, 1987). Moreover, it

is important to know views of customers to the product. If

the same product exists in the market, customers will not

buy it and its also bad for the firm too because they will

not generate profit. Therefore, if the product will not meet

consumers’ expectations, it cannot satisfy their needs in

any way. There are many ways to influence on human

consumption, by organizing a good service with product which

will fit in the market. In order to do this, basically

producers should care about that, because they should ask

themselves how they can influence on consumers to sell their

products for them. One more thing, even if the products fit

in the market, there is a risk that some people will not but

them? There arises question why? Today, majority of people

concentrates firstly on quality of product, and then they

will turn on some things such design and sale services. It

means that even the launch of right products fit in the

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market, it can fail by other several reasons. The next thing

that can influence on consumers it is price that producers

charge for products.

Price: One of the sensitive factors that have direct

relationship between consumers and producers is price of the

product. Charging a right price that consumers can allow

themselves is one of the hardest decisions that managers

ever make. If we talk about market in Kazakhstan, it is true

that majority of our citizens runs to buy products with

lower prices. However, sometimes it is not like that,

because some consumers care about quality, warranty, design

and marketing features. Therefore, it is significant to set

up prices with taking into consideration other factors that

might affect on behaviors of consumers. Honestly, in order

to generate profits with selling a lot of amounts of

products to consumers, every firm needs to review

psychologies of the people. For example, supermarket “Green”

uses a really good way to attract people, the tagline which

supports their pricing strategy and which they use in their

advertising, sound like: “Only we offer the lowest prices in

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the city!” It really influences on minds of people, because

every person wants to buy their needs as possible as at

lower prices.

Place: The third P is important part of marketing mix,

which is considered on human’s mind on every day. It is not

so hard to prove that place plays a big role on consumer’s

consumptions. Every person looks for ways in order to find

an easy and comfortable place where they can pick up their

needs. If we take Almaty city as an example, we know that a

lot of business centers are located in the centre of Almaty

or in other word in South-East part of the city. Therefore,

the majority of people are working in that region. It is

understandable that at the end of their jobs, they want to

buy something to their homes while returning. All we know

that it is hard to return to home in this city, if there is

a big traffic jam. Taking into consideration this situation,

people want to buy something from the nearest stores. It

means that locations of the stores should be comfortable not

for the producers, in contrast it should be located in place

which consumers can reach easily.

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Promotion: The aim of promotion can be considered like a

connection between consumer and supplier. Actually, the

sales promotion takes more percentage of marketing budget.

The reason of that it can give quick results with a high

volume of sales. There are a lot of types of promotion, but

it is not important to take them into consideration, because

from my point of view the general idea of promotion to

attract on consumers, and change their views about products.

Majority of firms attract their consumers by giving them

discounts on products. It really gives advantages, however

sometimes deep discounts harmful for companies. According

to J. Mattern (2007), the recent analysis showed that

discounts effect on consumptions of people, but 20% or

greater discounts hurt brands, and people immediately stop

their needs on that product. Therefore, consumptions of

human can change suddenly, if there are effects of

marketing mix promotions.

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Despite the factors that I mentioned above, there are other

two significant factors which have huge influences on

consumers. As you can see on this chart, there are two main

factors which are important on firm’s strategy. The reason

of talking about these two factors is that every firm’s

marketing decision can have huge effects on consumers.

Microenvironment: Indeed, this factor has a deep

connection to customer than macroenvironmental factor. On

the above chart, it is written that microenvironment

consists from company, supplier, intermediaries, customer,

publics and competitors. All of these parts have

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relationship with each other; each of them depends on their

well developed structures. In order to influence on human

consumption, these factors should be developed on a right

structure with an analyzed conclusion. According to

A.Anderson (n.d), more than 50% of companies` well beings

often depend on this factors. It is obvious that not

developed intermediaries, lack of information about

competitors, negative words of publics can immediately

destroy the reputation of company, and then, it will give

huge effects on consumer. Honestly, today people run to that

company or shop which has reputation in the market. Even, as

an example, we can talk about clothes that students of KIMEP

wear. As I know, young people often want to buy clothes from

that shop which has a really well known brand among other

shops. Now, the mall which is called “MEGA” has different

types of famous brands. Usually, students of KIMEP go to

there in order to do shopping. However, the prices are

relatively expensive than in other places. As a big market

in Almaty city, we have bazaar which has everything in its

market. The name of bazaar is “Baraholka”. If we compare

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prices of Baraholka with prices of MEGA, we can calculate a

huge difference. The final point of this example is that,

students know that prices are different in these markets,

but they often want to buy their needs in MEGA. The reason

of that it has a good reputation than Baraholka, therefore

it changes their views, and their minds always say that they

need to wear a real brand, not Chinese one. However,

majority of brands made in China, and they can always make

the same brands as an Italy, France, UK and USA.

Macroenvironment: The last level of factors that might

influence on human consumption is macroenviroment level.

This level consists from demographic, economic, cultural,

natural, technological and political parts. Obviously, it is

a broad factor that can change a human consumption from

different sides. As an example of macroenvironmental

influences, I want to talk about fast-food service which is

located in Almaty. The Hardees is the one of the best fast

food services in the world. Before entering to the market of

Kazakhstan, they overcame different barriers. Usually, when

you want to open business in emerging markets, without any

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doubt you will face some kind of problems. Basically, they

analyzed genders, ages, interests, economic level and other

parts of country. Now, this service is generating a lot

profits due to their correct analysis. As we know, young

people always want to eat quickly as it possible. Due to

quick services, Hardees met requirements of its customers.

And majority of young people go to eat products of Hardees.

From the cultural point, the lack thing of Hardees is that

they focused on young people, but adults do not prefer fast-

food products. By the reason of that they did not influence

on consumptions of adults. If we talk about economic level,

their choice was right about choosing cities where they can

open their services. Almaty is the largest city in

Kazakhstan and the salaries of people are higher than other

regions. Due to their incomes, they can allow themselves to

buy products of Hardees. The prices of fast-foods are not so

expensive; it is likely the same with the prices of other

cafes. Usually people compare prices, and for them it is

more comfortable to eat in Hardees, where the service is

organized quickly. Moreover, they took into consideration

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even religions of people. Majority of citizens are Muslim,

and they do not eat meats of pork. If you go abroad, we can

find on services of Hardees, products with pork meat.

Therefore, the change in their meat products influenced on

consumers, because if they sell products with pork,

obviously they will lose their customers in Kazakhstan. As

products and technologies are more complex, people always

care about their safety. Today, Hardees is considered this

part of marcoenvironment in a right way, and they use new

technologies where they can keep their products without

damages.

My needs, wants and demands:

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In order to make a deep understanding of influences on

human consumption, I want to give my own examples. As a

human being, majority of my needs are the same with the

needs of others. Firstly, I want to talk how the

macroenvironmental factors influenced on my needs, exactly

cultural ones. In summer 2012, I was in United States by

program “Work and Travel”. In USA, I was worked in

restaurant; exactly I helped to my chief(boss) to prepare

ingredients for meals. There were a lot of tasty foods,

which I wanted to taste. Unfortunately, due to my culture

and religion, I did not do that. Why? Because in the

composition of sauces, meals were pork and wine; and in the

tasty cakes were beer with wine. Therefore, I did not meet

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my satisfaction on meals of my chief. By the reason of that

in order to satisfy my needs and wants, sometimes I prepared

for myself. Another example from my life is about choosing

to my grandmother a little present. When I returned to

Kazakhstan from USA, I wanted to buy presents for all my

family members. There was only one problem when I choose to

buy for my grandmother necklace. I really needed that

present for her, and it met my wants, I satisfied with the

quality of that product. However, the size of that present

was narrow for grandmother. Therefore, I decided to look

thought other shops with the hope to find relevant one. So,

by time to time, I was in different shops, and in one of

them, I found what I looked for. It was really beautiful,

and I was ready to buy it. However, when I knew the price of

that one, I immediately cancelled my order, because I could

not allow for three thousands of dollars to buy necklace.

After that, I could not meet my needs, wants and demands.

Therefore, I changed my mind about that present, instead of

necklace; I decided to buy for her another present. So, it

means that all people faces such kind of problems with

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needs, wants and demands. Different factors really influence

on human consumption in different ways. Some people can get

satisfaction; other ones will cancel or reject their needs

on some products.

Marketing reflects needs and wants: I agree with the claim

of professor that “marketing merely reflects needs and wants

of people” (C.Kourti, 2007). Everyday, we see how the

marketing changes lives of people. Today, a lot of people

consider doing some business in order to earn money. But,

how? Majority of them go to business schools in order to get

some knowledge about finance and accounting. It is right

choice to study on this filed, however, some of them often

forget that in order to generate profits they need to know

deeply about marketing. Why? because only due to marketing

fields, businessmen can attract their customers, and change

their minds about products. In order to make it more

clearly, let’s take as an example case with the mobiles of

Samsung. Today, all we know that the products of this

company a well-known and take the first place in the market.

This was happened in recent years that the products of

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Samsung are more useful for people. From my point of view,

this company reached its reputation due to well organized

marketing structure. Before this time in the market we had a

good organized company which is called Nokia. Unfortunately,

now, Nokia lost its reputation and place in the market, and

Samsung replaced it in previous years. According to this

information, I can claim that the a new technology,

innovation, advertising and design of Samsung changed human

consumptions. All of the factors that were used by Samsung

company are the factors of marketing. It means that

marketing reflects the needs and wants of people in any way.

Marketing shapes needs and wants: Today, the meaning of

shape is that changes due to someone’s actions that

influence on your needs and wants. The way of living in this

world changed in recent years. Due to core concepts of

marketing, majority of people agree that marketing shapes

our needs and wants. From my point of view, the basic needs

of people are not changed, but the lives of people are so

interesting, they start to require other additional needs.

As an example, I want to talk about case from my real life.

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I have a little brother, who is studying at school.

Recently, I was in my hometown, where I really recognized

that the needs of people are really changing. I just

considered the situation that how my brother did his

hometask. When I was a school boy, honestly I never used

internet for my home works. I often concentrated to

accomplish my tasks by using books. It was really

interesting that you need to read different books and

materials in order to make your work in a right way. Now,

the technology is so developed, pupils just find information

in few minutes from the internet. Usually, my brother uses

this system of doing homeworks. It means that he had a basic

need like me(when I was pupil), but the difference is that

he used a new technology which is considered as an

additional needs of pupil. I think that the internet is the

additional need of pupil which is developed by founders.

Obviously, there is a role of marketing too, it is like a

macroenviromental new technology factor. If we look deeply

to situations in our lives, we really can recognize that the

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marketing shapes our needs and wants by giving us new

changes which we can use to reach our goals in easy way.

So to continuing our point, after company identifies

what customer needs and want, takes into consideration

factors that influence human consumption, company creates

offerings. However there is an argument between two ideas –

whether marketing reflects what people need and want or

shapes human needs and wants. I think both concepts are

true.

Today one of the main tools in attracting customers is

advertising. And companies can create the need in product by

hiring famous person to shoot in advertisement. Today it is

one of the main told in advertising. Ordinary customers are

attracted by celebrities promoting the product and it can

make them to buy it.

Another way how marketing shape needs is the use of words

“free” or “2 for 1” and so on. It is so because people are

becoming more price-conscious. And when you see such

advertisement, you buy even unnecessary product because you

think that in future it will cost more.

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For example, recently I saw an advertisement of case for

Iphone that stated “10 cases for 10 $”. I understood that

ordinary price is 10 $ for 1 case. But this offer attracted

with discount and I bought it even I already had cases for

Iphone. Today people are becoming more obsessed with

discounts and reduced prices. One of the possible reasons

could be the recent economic crisis and the following

economic instability in some countries. For instance, today

Greece and Spain have economic problems that are expressed

in inability to pay people their salaries. So it could be

the signal for marketers to establish reduced prices in

these countries.

In Kazakhstan, such strategy of reducing prices is also

actual. For example, stores like Technodom and Sulpak

compete with each other by continuously reducing prices on

products. So both companies may create and shape the need

and want in the minds of customers. Both firms often

demonstrate the reduced price against original priced being

crossed out on the label.

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Also Ramstore shapes customer needs and wants by noticing

people attention in Ramstore magazine with line “discount is

available and it will end soon”. Consequently, visitors

believe that they could obtain some product for less right

now than later. So people often make impulsive purchases.

Sometimes, they buy the things they were not going to

purchase.

Such impulsive purchases also take place in shopping centers

like Mega or Aport. Bootiques in shopping centers always

offer big 50% to 70% discounts at the end of the seasons

that helps them to get rid of previous collections.

Customers again want to obtain good-branded fashionable

apparel because it is cheap now.

Also some firms shape needs by offering upgraded products,

especially technological. For instance, Apple and Samsung

almost every year launch new type of its Iphone and Galaxy.

But these new versions do not differ very much from previous

versions. So people just pay more money for almost the phone

that is similar to old version. I don’t think that new

design of phone will add a lot to the price.

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Another point of view is also applied. Marketing reflects

customers needs and wants. Before launching products,

companies make research concerning customers – segmentation.

After studying customer characteristics, they position their

products in accordance with factors like demographical,

social, psychological, cultural, economic, and etc. Such

firms offer products after they know age distribution in the

area, population, ethnicity, presence of different

nationalities, income distribution and so on.

Then companies build relationships by offering quality

products, additional services, wide assortment, charging

reasonable prices, updating the assortment. In general, such

companies adopt marketing concept – paying high attention to

knowing customer needs and wants. These helps building and

maintaining strong customer relationships which I believe is

the most important aspect in marketing.

Some companies are successful because they offer people what

they really need and want. For example, some stores

specialize only on one type of products or service – they

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operate the niche. It helps to work with not so big group of

customers and successfully satisfy them.

Citizens of Almaty and Astana like visiting shopping centers

such as Mega, Aport, and Khan Shatyr. Because of time

necessary for shopping process, people need the place where

they can relax. So we can see food courts like worldwide

KFC, Burger King, Hardee’s and also local Assorti, Sushi

bars, Pizza cafes; also small coffee bars. These firms

operate in order to satisfy people basic need for food.

Visitors also can just sit and relax there even without

having a lunch.

In big shopping centers it is hard for adults to walk with

children for along time. Centers know it and they offer some

kind of playgrounds where parents can leave they children

without a fear that children can be lost.

Also the concept of 4 Cs and 4 Ps supports the idea that

marketing reflects customer needs and wants.

1. Customer needs and wants – Product. At first customer

needs and wants have to be identified and studied and then

product is offered.

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2. Cost to satisfy – Price. At first it is important to

consider costs for company and then charge price.

3. Convenience to buy – Place. It is important to identify

tools that will make purchase convenient. For example,

delivery system or opportunity to pay with various tools

(cards, cash, and checks).

4. Communication – Promotion. It is better to communicate

with customers than only promote and advertise to them. For

example, advising customers a help during the purchase,

smiling to them, greeting; listening to their complaints

Conclusion: In the conclusion of my thoughts, I want to

briefly reanalyze all of the arguments above. Basically,

there is no person who does not have needs and wants. I am

sure that today all people have certain needs which they

want to achieve or get. As I wrote, the needs are basic

things which we want in order to survive in this life. Due

to my analysis about core concepts of marketing and its

influences on human consumption, I can say that marketing

reflects and shapes needs and wants of people. There is no

doubt that marketing significantly changes the lives of

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people. Just imagine, the lives of people in rural areas are

not the same with lives of people in cities, because there

is a role of marketing. In big cities, always we have lots

of advertisements, new technologies and so on. All of these

due to marketing, it really attracts people` view with 100%.

Microenvironmental and macroinvironmental factors of

marketing cover the entire situation which person faces in

his life. Cultural, demographic, natural, technologic and

economical influences are factors that often occur in our

lives. Without marketing, there is no business, no

suppliers, no consumers, no money, and then no honey.

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2. Gauguin, P. ( 2010). Quotes about needs, wants and demands.

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