In this module, you will learn to define "marketing." We will explore consumer needs and see how marketing plays a role in value creation through researching and satisfying of these customer needs.
going to be launched, code name Ginger.
This device was built by an inventor known as Dean Kamen.
this invention is going to be bigger than the PC, bigger than the PC.
this will be to the car what the car was to the horse and buggy.
Hmm, so huge! In December 2001, Mr.
Kamen unveiled his human transporter called the Segway.
He predicted that he would sell 50,000, 50,000 in the first year.
the Segway used a system of gyroscopes to balance.
It used very small amounts of power, and it traveled about 12 miles an hour.
Kamen believed this invention would fill the gap between walking and using a car.
this device quickly found itself in difficulty.
a bit too fast to be used on sidewalks.
But too small, and riders were too exposed for it to be used on roadways.
In 2002, the Segway was tested by the US post office, and also Walt Disney company.
taking a spill while trying out a Segway in Maine, that was so funny.
Then, Segway was forced to recall all the scooters on the market.
Only 6,000 were sold at the time, not 50,000 like Kamen had predicted.
But 6,000 on the road.
because riders were getting injured from falling when the batteries ran low.
Segway mishaps, you would see the history of all these mishaps over time.
So, in 2009, Segway was acquired by a British businessman, James Heselden.
a man on a Segway plunge off a cliff into a river about 140 miles north of London.
Mr. Heselden's body was found next to his Segway.
In an ironic twist, he died while test riding a Segway. Sad, but true.
this great commercial success that Mr. Kamen had said it would be?
Remember, 50,000 sold in the first year.
The thing is, the Segway did not satisfy a need.
It was supposed to replace walking.
Replace it, or at least fill the gap between walking and riding a bike.
The need for that type of convenience did not exist.
The product, for all intents and purposes, failed.
Now, let's talk about what is marketing again.
to the definition of marketing - satisfying consumers needs profitability.
Let's examine some concepts underlying this definition.
First, let's talk about needs.
not the product they make.
they should sell the problem they solve, not the product they make.
This gets to the root of what marketing is about.
what benefits you provide, what need you satisfy.
A need is necessary to live a healthy life.
When a need isn't satisfied, there's usually an adverse outcome.
Needs could be objective, such as the need for food.
such as a need for self-esteem, self-esteem.
and physical need for food; subjective and psychological, self-esteem needs.
Another question we need to answer are, what are wants?
If needs are necessary to live a healthy life, then are wants necessary as well?
They're usually influenced by our experiences, our culture, our family, etc.
wants we desire to satisfy needs.
Let's examine the concept of wants in more detail by looking at our need for food.
Come with me, let's go visit a couple of restaurants.
We're here at Ambar restaurant.
It's a wonderful Indian restaurant in Champaign, it's in Champaign, right?
needs, and the fact that needs are universal, everyone has a need for food.
What differs, let me point that out, is wants, right?
So, I'm looking at this.
You guys have some great food here.
[LAUGH] >> [LAUGH] So, why come here?
Why come to an Indian restaurant?
>> Sometimes it reminds me of home.
>> It's about the taste for me, I like the spice.
I won't get that kind of spice at Subway, the spice I get here >> So, you wanted this food?
>> But did you have to eat this food in order to satisfy that need for hunger?
>> For me, when I crave food, when I'm like hungry, I don't think of a Subway sandwich.
>> is what comes to my mind.
So, unless I have it, I'm going to keep craving it.
I don't think I feel satisfied from it.
>> What is naan, by the way?
This is a portion of a naan, so a naan is pretty big.
It's supposed to be this size, and it's basically bread.
>> Okay. >> Basically, Indian bread.
I love naan, by the way.
And what about you, Shruti?
then I would want it once a week.
then it's the Indian, the food that I crave.
>> It satisfies your wants.
>> Yes. >> You want that food.
you get through Indian food, you just cannot have any through any other kind of food that you can have.
I can crave food, I can fill myself completely, but not be satisfied.
you might eat other food, but you would not be satisfied.
So, this truly satisfies you?
>> This is satisfying, this is something that makes me feel full.
>> Yeah. >> And happy.
Well, I am going to dig into some naan and some Indian food right now.
See you guys, naan for me.
because I'm going to a place called Golden Harbor.
It's a great Chinese restaurant to eat.
I have to go eat with some of the students there.
Right, you've heard of it, Golden Harbor?
>> No, not in the one year.
>> You're kidding me, what about you?
>> No, not in the one month I've been here.
I've saved some room, and I'm going to have some great Chinese food.
I wish you guys wanted it, it's obvious you don't.
But I'm going to go and enjoy myself some Chinese food.
So, let's go. Golden Harbor.
Well, we are here at Golden Harbor.
It's one of our Chinese restaurants, wonderful food, wonderful food.
pizza, but we all decided, you decided to come here.
Why did you want to come here, why not McDonald's?
>> As a student, I just feel that sometimes my life is very hectic.
but today, I want to enjoy this moment.
And I think the Chinese food is the food I can enjoy.
I want to share the Chinese food with you.
>> Okay, okay, the food you really enjoy.
Why would you want to, why here?
>> For me, I like so many different foods.
The Chinese food is my best one to eat.
>> It is the best, okay.
and with the class, about needs and so on, and the fact that hunger is a need.
It's a need that's shared by everyone.
but how the need is satisfied sometimes differ, sometimes it's different.
Why do you want to satisfy, why satisfied this need for food with Chinese food, why?
>> For me, it's all the feeling.
>> Yeah. >> Because I'm a homesick.
>> Yeah, so everytime I have this Chinese food.
>> I really think about my hometown, about my mother and my father.
>> Aw man, aw, jeez.
>> I think the reason is very simple, because I want Chinese food.
>> [LAUGH] You want it, easy.
>> Understand, burger, if I'm hungry, I'm okay with them.
But it doesn't mean I want them.
you don't need Chinese food to satisfy you, right?
But you want it, that's what you're saying.
that you're homesick, makes you feel like you're back home.
>> And you want it.
So, how you satisfy your needs would be what we call wants.
Illinois, Ambar and The Golden Harbor.
So, what does our experience at these two restaurants demonstrate?
geography, regardless of where you are, this need for food exist.
It's shared and common by everyone, me, you, my family, your family.
However, the way in which this need is satisfied varies.
the products you desire, are impacted by your experiences and your culture.
to satisfy those needs depends on the individual's culture and experiences.
Now, I want you to think about your own need for food, and how it's satisfied.
wants are more local and individual impacted by culture and experiences.
Let's dive into these concept of needs some more.
what other types of needs exists still, in addition to hunger?
What other types of needs exists?
Someone who attempted to answer this question was Abraham Maslow.
Maslow was born in Brooklyn, New York in 1908.
really pushed him to excel academically, you know that old immigrant zeal.
then he pursued multiple psychology degrees at the University of Wisconsin.
Maslow wanted to understand what motivates people.
that are unrelated to rewards or unconscious desires.
when one need is fulfilled, a person seeks to fulfill the next one, and so on.
some needs take precedence over others.
thirst before you satisfy your need for friendship and social interaction.
Maslow took this idea and developed his famous hierarchy of needs model.
It can be divided to basic or deficiency needs.
also growth needs, which are self-actualization needs.
are set to motivate people when they are met.
the longer the duration that they are denied.
the more hungry they'll become.
One must satisfy these lower level needs, as Maslow said.
They must satisfy them before progressing on to meet the higher level needs.
the highest level called self-actualization, self-actualization.
in a hierarchical fashion one after the other.
However, there have been criticisms of Maslow's hierarchy of needs.
this ranking of needs should be in this specific order.
fashion that Maslow said needs must be satisfied in, is not supported.
listed from physiological at the bottom, to moving up to self-actualization needs.
Maslow interviewed individuals that excelled in their respective fields.
rigorous scientific origins, and might not have applied to everyone.
research paper written by Louis Te, and Ed Diener.
needs as defined by Maslow do appear to be universal.
So, Maslow had identified diverse needs, and these exist.
That's a crucial contribution from Maslow.
to life satisfaction and enjoyment.