Chapter Number Three Demand Stipulations Modular: Afjal Hossain, Assistant Professor, Department of Marketing, PSTU Kenneth K. Clow & Donald Baack “Integrated Advertising, Promotions and MCs” 2nd ed.

Customer Needs, Wants, and Demands States of deprivation Physical—food, clothing, warmth, safety Social—belonging and affection Individual—knowledge and self-expression Want Form that human needs take as they are shaped by culture and individual personality Demand Human wants backed by buying power

Definition of Need & Want Needs are the felt of deprivation. Ex: When A wo/man feels hungry then s/he needs food. On the other hand, when needs are backed by society then these are called wants. Ex: All foods are not acceptable by our society i.e. heroine, beer etc. Human wants and needs are countless in number and are derived from many complex forces. Habit, custom, conformity, and distinctiveness are among these sources.

Nature of Habits Habit is a quality in a person that helps him to perform an act well or poorly in relation to his nature or actions. It is acquired by repetition, and shows itself in facility of performance or in decreased power of resistance. In deciding on the marketing mix, it is important to know what the buying habits of the consumers are: Why do they buy a product? Where do they purchase it? How do they want to buy it? Do they want to pay cash, or do they have the habit of buying on credit? Do they want a 30-day open credit account, or do they want to buy it on an installment basis? Are they willing to make a substantial down payment? Do they want to buy the product in a drugstore or a supermarket? Will they see our advertisement on television? Do they read the daily newspaper? Will they see the advertisement in the morning or afternoon newspaper?

Definition of Market Demand Market demand is the whole schedule of the quantities of any product which consumers will purchase at different prices during a stated time period. The two components which make up this demand are: Desire and Purchasing power

Definition of Demand Stipulation Advertising has generally thought of the consumer in terms of who buys what, for what purpose, at what price, and at what store. While a company devotes a portion of its advertising budget to educate the public about its labor policy or to encourage people to give to the Agriculture Fund, the principal objective of most advertising programs is: to develop, to maintain, and to increase the demand ( or potential demand) for the product (s) involved.

Types of Market Demand Depending on the conditions surrounding the product, the consumer and the market, there are two broad types of consumer demand that advertising attempts to stimulate. These are: primary demand and selective demand.

Types of Market Demand Primary Demand: When Advertising designed to create demand for a type of product then it is called primary demand. This type of demand tells the potential customer how basic needs can be satisfied by advertising. For example, advertising explains the comfort of cool air during the hot summer months by: how much healthier the consumer will be if s/he has cool air in his/her home how much more work members of the family will be able to produce Here The advertisement is attempting to show the want-satisfying qualities.

Types of Market Demand Selective demand: Selective adverting is the demand for a particular brand or style or model of a type of product. The advertising usually would do this by pointing out those features of the brand that enable to fulfill the customers’ desires or needs better than any others on the market.

Inherent Drives and Impulses Our wants are inherent and deep-seated. They can be either positive or negative. They may lead on the one hand to the motivation to buy a product, while, at the same time, be the reason for our not buying the product. They may lead to the motive to be first, or provide the reason why we refuse to be an innovator.   The following drives can be considered for making a purchase: Necessities Happiness Sex Security Recognition and Emulation.

Inherent Drives and Impulses Necessities: To sustain, life is the first or the basic stimuli, because man must satisfy his needs for food, clothing, shelter, and health in order to exist. Needs and tastes may differ between people in the same social stratum, but the drive for minimum necessities is so great that man generally will give up other demands in order to get these essentials.

Inherent Drives and Impulses Happiness It is an inherent drive with which each of us is endowed. Every perfectly designed item of nature strains for this fulfillment. It is the common ground on which all human desires, all human ambitions meet. The salesman trying to meet his quota, the engineer building a bridge, the baseball player hoping to improve his batting average, the wife preparing the meal for her family - all are seeking happiness.

Inherent Drives and Impulses Sex The transitions from birth through the various age cycles characterized by departure from organized school life, home protection, and adolescent friendships into the adult world of life influence the individual’s response to this drive.   During the first phases of the adult cycle, the focus of the drive will be on marriage and family life in which there will take place vivid changes.

Inherent Drives and Impulses Security Security will differ by the degree to which a particular person may think he needs it. Some men are more temperate than others. Some interpret: security on the basis of an abundance of money. it is the essence of an intellectual independence that can be achieved only by the spirit.  

Inherent Drives and Impulses Recognition This drive is for recognition because people are very much alike and desire to be recognized for what they have accomplished. They want to be given credit for their good ideas, and They are disturbed when the ideas are ignored.  

Inherent Drives and Impulses Emulation Emulation is one usually classified as the desire to equal or excel others. Generally, the others whom we wish to equal or excel are those in our own group.   In fact, some men even dissipate personal fortunes in an attempt to gain the esteem of their fellow man. A picture in a newspaper of a person who is taking a trip of some kind.