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Ideas for Demand Segmentation based on the Total Need for a Product
Jacob George, Financial Consultant, India
Traditionally, marketers have been interested in cracking demand by making more sales using tools like increased sales force, increased visibility and by direct marketing tools. These have been instrumental in increasing the bottom lines of most of the organizations.
A backward integration of the same demand would arise into need generation.
A simple difference between the need and the demand for a product or service is that DEMAND has to be backed by the ability to actually buy, whereas NEED only requires the willingness to buy the product or service.
For example, a beggar dreaming for air travel can be considered as a case of need: though he dreams of it (willingness), he doesn't have the money (ability) to pay for it. In such cases of need without demand, marketers are not interested.
Now comes the case of a businessman aspiring for air travel. He posesses both mentioned ingredients, ability as well as willingness. And marketers are interested here since that creates demand. Cracking demand as per your wish is the job of marketing people.
Now the question is, can you crack demand also from the point of need generation? Can we segment the total available demand in a given market?
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Need Generation and Necesity for SegmentationUduakobong Sunday, Management Consultant, Nigeria Marketers can create different kinds of options and interest for people who have means/ability and needs. Some prospects have to be persuaded to use certain products and services.
The importance to segment the total available demand can not be over-emphasized, because even though many people could have the same kind of need, their ability might vary a lot.
Segmentation would ensure that every person's need is met relative to his/her means / ability / disposition. |
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