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Friday 7 September 2018

Needs And Wants And The Exchange Process


   The over riding goal of marketers is to satisfy consumers' unfufiled needs and wants. To this end marketers must recognize and understand consumers' needs and wants, and determine the appropriate way to satisfy them. Even though need and wants are sometimes used interchangeably, they do not mean the same thing in economic terms. A need is something we lack but which is necessary for our physical or physiological well-being.  A want is less ethical to us than a need. A want is something which we lack, but which is not a necessity. We would like to have it because it's desirable or useful to us in order to improve our well-being. Wants are variegated expression of needs.

    Human needs are basic and limited in number, while human wants are not basic and are unlimited in number. Example wants are owner- occupier accommodation in the G.R.A (government reserved area) part of the town, a plate of fried rice at Genesis Restaurant, a sport wear and a university degree obtained through a distant education program.  While our basic needs can be met by any generic product that solves a particular problem, our wants are usually met through products that yield additional or variegated degrees of professional satisfaction in solving the same problem. For example, For example, while all a thirsty person needs is water, his want may be a bottle of Diet Coke.

     In practice, people do not usually differentiate between their needs and wants if they are the same. A thirsty person in a hot afternoon may see a cold bottle of Lima Cola as  the solution to his problem.  A celebrity may see a visit to RAYA RESTAURANT as a necessity whenever he wants to have his lunch outside the home. By seeing his wants and needs  and expressing his needs in terms of want-satisfying products, the consumer is this pushed to actively look for the means of getting the particular product the will meet his personal degree of satisfaction. The practice of marketing subscribes to this tendency. Marketers usually design their products in varieties of brand or forms (rather than in generic forms) and offer them to meet consumers' needs. This means that marketers try to meet consumers'needs by offering them want-satisfying products and the want-satisfying products are promoted to meet or fill the needs of the consumers. In day to day activity therefore marketers use the words needs and wants as if they are synonymous. People have three options for the satisfaction of their needs when they cannot produce the needed goods by themselves, these are by begging coercion and exchange. Begging involves supplication and requesting arms or favour from someone who has what one lacks. Borrowing without the payment of interest is a form of begging. The beggar is at the mercy of the begged coercion has to do with obtaining obtaining something from another person by force or without his free consent. The one obtaining the product dose so by forcing the owner to part with it. Coercion is illegal, because it often involves cheating. Exchange involves giving something of value in order to receive another.  Exchange is essentially marketer's means of providing satisfaction to people's needs. Exchange is a superior to begging and coercion, because because it ensures that something of value is giving to both parties, in making exchange transaction are satisfied.

For exchange to take place, certain conditions must be satisfied. These are as follows:

1.  Two parties must be involved. These are the seller and the buyer. The more active of the two parties is the marketer who seeks the other party  (customer).

2.   Each party must have something of value to present to the other .this ensures mutual satisfaction.

3.   Each party must be actively desire to deal with the other.

4.   Each party must have considered it worthwhile or beneficial to deal with the other.

5.   Each Party should be free to accept or reject the other's offer.

6. Each Party should be capable of delivering his offer and accepting the other's.

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