Understanding Customer Needs for Marketing Purposes

4.1 Introduction

In this module, we look at one area that is perhaps the most important part of your entire approach to marketing: understanding the needs of your customers. This is something that every company should do because it allows you to tailor your services or products in such a way to attract more potential customers from the outset. Remember, more customers will mean more turnover which increases the chances of your business being a success.

4.2 The Difference Between Need and Want in a Customer

When trying to understand your customers, it is important to recognise the two basic reasons why they will come to your company to use your services or buy your products - they either have a need for your services/products or they want them. Yet these are two very different concepts that have to be examined. In the most basic of terms, a 'need' is often referred to as when you have a product or service that is solving a problem that an individual has at any given time. For example A plumber will serve a need in an individual when they have a burst pipe as they need to have it repaired. A clothes shop can serve a need when an individual needs a certain outfit or item of clothing for a specific reason, such as an official engagement.

The theory here is that your marketing should show that you can supply them with what they need within the market that you are in. Being able to thoroughly satisfy that need will make you stand out from the crowd and help to attract that section of the market. At the same time, there is also an objective to create a want in the customer. This is very different to them believing that they need something, even if they themselves are not aware of this fact. A want is more akin to something that we crave. Reflect how you feel when you see an advert for a product on television that you are drawn to and want to buy it. You had no actual need for that product until you saw the marketing for it, yet suddenly things have changed i.e. instead of needing it, you actually now want the product. This is a very powerful tool for businesses to have at their disposal with regards to their marketing.

So the difference between the two aspects is as follows:

*A need tends to be when you are able to solve a problem that they have.

*A want is when you create a desire for something that is more of an indulgence.

*A need and a want are equally as powerful even though they are different things.

That really is the difference between the two aspects broken down into their most basic explanations, but one thing that is extremely important is the understanding that you are required to target both aspects in your business and do not simply ignore one over the other. It is important to remember that there are some customers that need your products or services for whatever reason and there are some customers that want your products or services often due to the need for something else.

4.3 How to Identify Those Needs

The difference between the need and the want for a product or service is very easy to understand, but it does require you to be able to correctly identify those needs or wants in order to tailor your marketing to them. In doing so, you will provide yourself with every opportunity to create the perfect marketing message and thus you stand a good chance of boosting your turnover and general awareness of your business, which is the aim of all marketers. To identify those needs or wants, you must look at your business from a neutral perspective.

*What is it about your business that is attractive to customers?

*What is it about your products or services that will make people want or need to get in touch with you?

*Do you solve a problem and provide a solution?

*Do you have products that excite people or are akin to some kind of desire?

*Are you sure there is a real market for your business before you begin?

In other words, to identify the needs or wants of your potential customers it is important that you come to terms with your business and fully understand what you offer. Often those closest to the business become so fixated upon what they do that they cannot see the bigger picture, and that is where there is an issue. You may well believe that you have the best service or product on the market but, if you do not understand what makes other people tick, there is every chance that you are misunderstanding the market, which could spell disaster. In order to fully identify the needs or wants you have to study your market.

*Is it big enough?

*Is there enough demand for what you do?

*Does your target market actually exist or is what you are offering priced correctly (too expensive or too cheap) and thus people do not trust in it?

*Is your potential market the correct market that wants what you have to offer? Is there a need for it?

For example.

Think of it this way: If you are selling high quality and expensive products, then you would not focus your attention on a poor area as there would be neither a need nor a want for what you are offering. However, if you change location, you could reap rewards. Spend enough time looking at where you plan on positioning yourself and look at the competition to see how well they are doing, as that can tell you everything you need to know about your market. Is there any competition? If not, then why not? As you can see, there are many questions to ask yourself when it comes to identifying the needs or wants of your market.

FACT

4 times as many customers would rather watch a video about a product than read about it.

Source: hubspot.com

4.4 How to Interpret That Information for Marketing Purposes

As we have just taken you through the way in which you identify the needs or wants of your customers, it makes sense for you to begin to learn how you take that information and use it to your advantage for marketing purposes. That information will be the crux of how you go about positioning your business and how you create your marketing strategy, because playing to those needs will help your business seem more appealing to customers. What is the result of this? Your business will be more attractive and prospective customers will be more likely to take action, which is what you are looking for.

The key to interpreting the information is to understand what drives customers to come to you in the first place and this is where the concept of market research comes into play. We will discuss the importance of research elsewhere in the course, but, at this point, it suffices to say that you must understand the pull that your business has on your potential customers, in order to formulate your marketing strategy.

Alternatively, if you find that your marketing is making no difference whatsoever, then it means that you have interpreted this information incorrectly, and further action is needed. It is at this point that a number of business owners or people involved in marketing mistakenly give up, as they believe that the business is failing. In actual fact, in most instances, it is not the business but rather the marketing approach that is the problem. People looking to market a business are often guilty of rushing into things and creating plans without giving them enough thought.

This is something to be avoided at all costs because of the money and wasted time that could be involved if you do not study your market and give proper consideration to ideas before implementation. Remember all the questions mentioned earlier in this module? If you do not have the answers to all of these questions, then our advice is that you are not yet ready to progress to the next step.

4.5 The Difference it Makes to Your Business

Having a better understanding of your customers and their needs or wants helps you to create a plan that matches this information perfectly. With those points and, as a result, your marketing strategies should then be more productive than ever before. However, it still requires you to do the groundwork and to put things into action because, without this, you will not progress your business.

At the same time, you have to be aware that knowing to whom you are marketing, as well as the kind of things for which they are actively looking will put you in such a good position that it makes it harder for you to make mistakes, even though it is still entirely possible. Importantly, thanks to your ability to create the perfect marketing strategy for your company, you are far more likely to be able to increase your turnover, which is the entire point of marketing. However, the extent to which this makes a difference will always depends on how much effort you put into your marketing activities.

MODULE SUMMARY

In this module, we focused on being able to understand the difference between the needs and wants of customers, as well as how to correctly identify both aspects to help create the perfect marketing strategy for your company. However, even though you are now in a better position to identify these key points, there is still some work for you to do and aspects of marketing to learn before you are able to go ahead and put your strategy into action. In the next module, we will take you through how to get to grasp the marketing environment and how to come out ahead of your direct competition.