Difference Between Needs, Wants and Demands

Needs, wants and demands are a basic part of the marketing principles. It helps a marketing department to decide whether a product effectively sells or not.

Needs

• Essential things for the survival of human beings. 
• Basic requirements like food, cloth, shelter etc. 
• Extended parts of needs today are insurance, pension, education, healthcare etc. 
• Things that we associate with ‘needs’ don’t require a boost because these are the products and services people always buy.
• It is not easy to promote products which come under the ‘needs’ category as there are thousands of brands promoting the same products and services from the needs category. 
• Do not require a PUSH.

Wants

• A product desired by a customer that is not required for people to survive. 
• Wants are not permanent and it regularly changes. As time changes, people and location change, wants change accordingly. 
• Wants are not essential for humans to survive, but it is associated with needs. 
• If we always manage to satisfy our wants, it transforms into a need. 
• Wants are shaped by one’s personality, culture, society and surroundings
• Eg: iPhone, music player, dryer, eating out, Pepsi, big screen TV, CCD etc. 

Demands

• If a customer is willing and able to buy a need or a want, it means that they have a demand for that need or want. 
• For people who can afford a desirable product are transforming their wants into demands. 
• The basic difference between wants and demands is desire. 
• Eg: Willingness to buy a BMW is a want, but if you have the buying power, then it becomes demand.