Customer Needs & Wants (AQA GCSE Business)

Identifying Needs & Wants

• Marketing helps a business identify the needs and wants of its customers

  • It involves finding out about the

    • Variety and quality of goods and services that customers want

    • Prices they are willing to pay

    • Promotional techniques that may persuade them to make repeated purchases

    • Convenience factors, including where and how they want to purchase products

    • After-sales services they expect

• Businesses that successfully identify and then satisfy customer needs 

  • Compete more effectively than rival businesses, often on factors other than price

    • This means they are likely to make a profit

  • Create products that meet customers' precise desires

    • This can lead to customer loyalty and positive word-of-mouth advertising

  • Keep up-to-date with changing tastes and preferences

    • They can offer new or varied features, such as sizes, colours and styles, required by different customers

      • This can provide a competitive advantage over rivals

  • Increase sales

    • The positive reputation gained by satisfying customers leads to increased recognition

      • Customers often feel confident enough to buy from well-known brands

    • Appropriate pricing, including special offers, can attract customers to a brand

  • Avoid costly mistakes

    • Developing an inappropriate marketing mix may mean products have to be withdrawn or cause reputational damage

Typical Customer Needs and Wants

Satisfying Needs & Wants

• Businesses that successfully identify customers' needs and wants are in a good position to satisfy them

• Satisfied customers are likely to remain loyal to a business

  • They will return time and again to buy its products

  • They often recommend products to friends and family and leave positive reviews online

• As well as meeting customers' expectations on price, retail businesses satisfy customers in a range of ways:

Diagram: How Retail Businesses Satisfy Customers

Popular retail businesses satisfy customers in a range of ways, including good quality, adequate stock levels, convenient locations and relevant offers

• Well-stocked retail stores that are in a convenient location and are pleasant environments in which to shop are likely to appeal to customers

• Effective online shopping experiences, including prompt delivery and easy returns and replacements, will encourage customers to return time and again to a retail website

• Consumers value knowledgeable staff that provide good customer service, especially when customers are making complex purchases and can advise on special offers