What is a need in marketing

Business Management Lexicon - Marketing

The prerequisite for the emergence of demand are the needs of the consumers. The need is an economic variable that requires purchasing power. Since this is not always available to the desired extent or is falling, the specific demand is often less than the need.

The need depends on the following factors:

  • individual needs and urgency of individual preferences,

  • respective goods prices,

  • disposable income,

  • economic expectations of economic agents,

  • Influencing consumers through advertising media, etc.

Demand in the economic sense is therefore only that part of the needs that economic agents can and want to satisfy with the means available to them. Only then does the demand take effect on the market and trigger corresponding demand with purchasing power.

Economically, the development of demand, which changes due to changes in consumer habits, values ​​and concepts of utility, etc., is of great importance. For example, a lower demand for consumer goods can have a negative impact on the demand for production goods and thus affect the economy. The suppliers of consumer goods will then invest less for their part due to the weak sales and thus demand less production goods.