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EXPLORING
CONSUMER NEEDS
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Prof. S. Ramesh Kumar
Associate Professor of Marketing,
Indian Institute of Management Bangalore
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Marketers
in recent times have realised the importance of marketing
orientation, and this is being reflected in the application
of marketing mix elements. Consumer needs are fundamental
to the formulation of any marketing strategy, from developing
a communication plan to offering a discount sale. It may be
worthwhile to explore the intricate aspects of consumer
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behaviour which focus on ‘consumer needs’. These
concepts enable marketers to analyse the applicability of
strategies planned by them.Recognising consumer needs
Need at a fundamental level is a ‘state of deprivation’.
In today’s marketing context, however, the meaning of
the word ‘need’ is very broadbased and could include
anything from buying a value-based detergent to aspiring for
a designer outfit which has an aura of prestige. In any situation,
the task of the marketer is to recognize two basic states
of the consumer psyche which will have relevance to his or
her needs—the actual state and the desired state.
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| Actual
State |
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Contributing
Factors |
| An
urban nuclear family |
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Husband
and wife working, |
| struggling
to cope with |
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different
timings, problem |
| washing
clothes |
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of
getting reliable maids, etc |
| Desired
State |
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| Washing
Machines |
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non-dependance
on outside |
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help,
anytime and easy usage, |
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dependable,
reasonably good |
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washing |
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| Examples
of brands which have succeeded by highlightingthe
desired state |
| Brand |
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Communication
on |
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'desired
state' |
| l
Maggi |
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Convenience
of preparingfast food |
| l
Dabur Chywanprash |
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Long-term
health |
| l
Surf Excel, |
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Clean
clothes |
| Microshine
Ariel |
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ecognition
of these two states leads to the recognition of the need.
The discrepancy between the two states helps the marketer
to focus on consumer needs. Two decades ago, the actual and
desired states may not have existed with regard to washing
machines (though, even today, the penetration of washing machines
is not high). Recognising the ‘need states’ (the
two states) helps the marketer to also know if the timing
is right for a specific product. If there is no discrepancy
reflected (among the states) by consumers, the marketer may
have to either wait for the product to be launched or create
awareness about the actual state and desired state.
Actual
and desired states—certain considerations:
Research could provide insights into the specific aspects
of ‘states’.
A desired state need not necessarily involve a very specific
benefit (as stated earlier). When there is a proliferation
of brands or when two strong brands compete strongly in
a non-durable market (eg Coke Vs Pepsi), the desired state
could just be an extension of the brand personality. Pepsi’s
recent commercial, involving a well-known celebrity, projects
a ‘young, popular, lively’ state which could be
associated with the desired state. Though a soft drink is
not a habitual product for most people (except maybe a small
cross-section), the association of the demand could trigger
off ‘the desired state’ whenever the consumer
feels a need for a soft drink. Liril, Raymond and Videocon
(the ‘Supermarket’ refrigerator model commercial)
are examples of marketing communication which have made
a good attempt to create a ‘desired state’ by
combining functional and/or emotional benefits.
Problem
recognition and ‘uncommon’ product or service
categories
‘Uncommon’ product/service categoriesefer
to product or service categories which may not be in the
mindset of consumers on a day-to-day count. These include
insurance services, antiseptic lotions, air-fresheners,
raincoats and after-sales service contracts for household
appliances and electronic equipment (especially when reliable
service is difficult to obtain). New India and United India
in the insurance sector are currently projecting these needs
through TV commercials. Antiseptic lotion is not a frequently
bought item and brands can trigger ‘need recognition’
by point-of-purchase posters.
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After-sales
service is an area which offers wide scope for marketers to
leave a lasting impression on consumers, but this is unfortunately
an area where a number of companies fail to deliver the goods.
Brochures are provided by almost all reputed brands of televisions,
fridges, carsand other durables. Brands could also |
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provide additional information on types and conditions of breakdown
(number of hours of usage, types of major and minor breakdown)
to create awareness of specific problems so that consumers are
able to visualize these situations and recognise the problems.
This would also motivate the consumers to interact more frequently
with the marketers (dealers or manufacturers).
Types of problems that consumers experience
As a sequential approach, analysing consumer states leads to
types of problems which consumers experience. While the ‘states’
help in recognising problems, may be useful to marketers in
the identification of problems. |
| Examples
of brands which are attempting to create
awareness on ‘actual state’ of consumers |
| Brand |
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Communication
on |
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'desired
state' |
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Unit Trust |
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'Cars
can be bought on instalments, not children's
education' was the theme
emphasising that an instalment
plan cannot cover certain
important expenditures |
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BPL (fully automatic machine)- |
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Different
degrees of soiling on clothes |
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Early campaignsof Colgate |
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Bad
breath as a social barrier |
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After-sales
service is an area which offers
wide scope for marketers to leave a lasting impression
on consumers, but this is unfortunately
an area where a number of companies
fail to deliver the goods
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| Problems
can be classified into active and inactive problems. An
active problem is one which the consumer is aware of and
an inactive problem is one which he or she is not aware
of. Ceasefire, the mini fire extinguisher brand, created
awareness about problems associated with different kinds
of fire. It brought out the fact that different kinds
of fires require different gases. This is an inactive
problem. A brand of electric shaver could create awareness
about the negative aspects of conventional blade-based
shaving and activate a ‘problem’ that is inactive
for many men. An active problem involves convincing consumers
about the superior nature of the brand. When consumers
were very much aware of the increasing costs of petrol,
Hero Honda convinced them of its superior offering.
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Consumers’
priority and nature of recognised problems
How consumers respond to the strategies of ‘actual’
and ‘desired’ states would depend on two important
factors:
1. The magnitude of discrepancy between the desired and actual
stats: A new dimension to scooter brands is the introduction
of the four-stroke scooter. If fuel consumption is a vital
evaluation criterion of a prospective consumer (maybe even
in the replacement market), the ‘desired state’
in terms of fuel economy should be significantly higher in
a four-stroke scooter for the consumer to consider the new
offering, especially given the fact that the updated version
of the product will cost a few thousands more than conventional
scooters. The magnitude aspect becomes important when brands
offer new benefits to gain an edge over competing brands.
2. The relative importance of the problem: A consumer owning
a two-wheeler may like to own a car which may be his ‘desired
state’ of satisfying a ‘transport’ need. But
given the ‘priority hierarchy’ in the mind of the
onsumer, he may attach very little importance to buying a
car. In the Indian context, generic competition (where the
purchasing power of consumers competes for a number of categories)
is an important aspect. While the consumer may be interested
in several product categories, he may prioritise television
as a priority buying item. The consumer durables could make
use of this aspect by creating ‘an immediacy of purchase’
around specific products. The microwave oven is one category
which has been around for almost a decade, and this approach
may be very applicable to it (though the benefits of the product
may not be sufficient to create an impending desire to own
it).
Actual
and desired states are dynamic
Marketers should note that the ‘states’ regarding
needs are not static. As individuals go through family life-cycle
stages, differing earning capacities and lifestyles, the states
keep changing and this is one of the reasons why marketers
offer an updated productline to hold on to loyal buyers. The
entry of Raymonds into readymades (Park Avenue) and updated
models of Maruti are examples of catering to changing ‘desired
states’ apart from competing with new brands. It is essentialto
have a ‘pioneering lead’ to cater to changing ‘desired
states’. Park Avenue entered readymade wear much before
other brands. LML Vespa marched ahead of Bajaj to cater to
the changing ‘desired states’ of consumers.
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| ‘Product
analysis’ is a technique which could be used by marketers
to identify the ‘problem recognition’ aspects concerning
consumers. It involves researching how consumers purchase or
use a product. For example, |
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toothpastes
(like shampoos), are now being offered in sachets. However,
consumers, after having used the paste, may want to store it
to be used on a later occasion—so Close-up has introduced
sachets with a cap. Similarly, the process of using medicinal
drops for the eyes and ears has often posed problems for consumers
in terms of breaking the nozzle of the container, finding a
dropper which could be used or just making a puncture on the
container from where the medicine can flow. Norfloxacin is a
brand which offers a built-in mechanism with which consumers
can easily break the nozzle. Another example is readymade wear
brands which offer different kinds of fits from which consumers
can choose.
As brand differentiation becomes a difficult proposition to
achieve over a period of time, brands will be forced to concentrate
on exploring consumer needs. |
| Examples
of product categories where brands could create
awareness on actual states |
| Brand |
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Communication
on |
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'desired
state' |
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Air-purifier |
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Ill-effects
of polluted air |
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Home Computers |
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Importance
of computers in
future (for children) |
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Cooking ranges |
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Timeliness,
simultaneous
cooking (BPL is currently doing this) |
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References
1. G. C. Burner and R. J. Pomazal
‘Problem Recognition, The Crucial FirstStage of the Consumer
Decision Process’, Journal of Consumer Marketing, Winter
1988, pp 53-632. Henry Assael, ‘Consumer Behaviour and
marketing Action’, Kent 1987
3. J.C. Moven, ‘Beyond Consumer Decision Making’,
Journal of Consumer Marketing, 198, pp 15-25
4. David Loudon and Albert J. Della Betta, ‘Consumer Behaviour—Concepts
and Applications’, McGraw-Hill, 1988
5. S. Ramesh Kumar, ‘Marketing Nuggets—Conceptual
Dimensions in Marketing’, Vikas, 1998 |
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