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ASSESSING CONSUMER NEEDS

The first objective in marketing is assessing the needs of prospective consumers. Sound simple? Well, its not. In the abstract, assessing needs looks easy, but when you get down to the specifics of marketing, problems crop up.

Some Product Disasters With much fanfare, Radio Corporation of America (RCA) introduced its SelectaVision Videodisc player to the world in the late 1970s. Polaroid, flushed with the success of its instant still-photography business, introduced Polavision (Question 2, Figure 1-1) as the first instant home movie in 1978. Similarly, Federal Express first ballyhooed its ZapMail, a 2-hour electronic mail service available throughout the United States, in 1984.

All these firms quietly dropped or redirected these products a short time after their introduction, with RCA losing over $600 million on its venture, Polaroid losing $170 million, and Federal Express losing $200 million.

These are three of the best-known product disasters in recent U.S. history, but thousands of lesser-known products fail in the marketplace every year. One major reason is that in each case the firm miscalculates consumers wants and needs for these products. In the RCA Videodisc case, American consumers wanted to record TV programs, something videocassette recorders (VCRs) could do but Videodisc machines could not. They didnt want instant movies as much as they wanted instant still pictures, and Polavision failed in the consumer market. Today, of course, consumers are showing their electric home movies on their VCRs. ZapMail failed because of lack of demand, at least partly because major potential customers were buying their own facsimile machines.

The solution to preventing such product failures seems embarrassingly obvious. First, find out what consumers need and want. Second, produce what they do need and want and dont produce what they dont need and want. This is much more difficult than it sounds, as shown by Kenner Parker Toys, Inc. Many of its consumers are 6 years old, so Kenner Parker marketing researchers are sent to observe unobtrusively how children play with toys and see what they like and dont like about them. As shown in the Marketing Action Memo, this research has helped spawn some tremendously successful toys: Play-Doh, Care Bears, and X-Wing Fighters. Research on Strawberry Shortcake (shown at right), one of Kenner Parkers products, uncovered a difficult request: a special fragrance for the doll that would last for years without being hazardous to the children playing with it. Kenner Parker marketing executives asked their chemists to solve the problem, which required mixing 2000 ingredients that were nontoxic both separately and in combination.

Its frequently very difficult to get a precise reading on what consumers want and need when they are confronted with revolutionary ideas for new products. Right after World War II, International Business Machines (IBM) asked one of the most prestigious management consulting firms in the United States to estimate the total future market for all electronic computers for all business, scientific, engineering, and government uses (Question 3, Figure 1-1). The answer was less than 10! Fortunately, key IBM executives disagreed, so IBM started building electronic computers anyway. Where would IBM be today if it had assumed the market estimate was correct? Most of the firms that bought computers 5 years after the market study had not actually recognized they were prospective buyers because they had no understanding of what computers could do for them: they didnt recognize their own need for faster information processing.

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8. Consumer needs and consumer wants Should marketing try to satisfy consumer needs or consumer wants? The answer is both! Heated debates rage over this qnestion, and a persons position in the debate usually depends on the definitions of needs and wants and the amount of freedom given to prospective customers to make their own buying decisions.

A need occurs when a person feels physiologically deprived of basic necessitiess like food, clothing, and shelter. A want is a felt need that is shaped by a persons knowledge, culture, and personality. So if you feel hungry, you have developed a basic need and desire to eat something. Lets say you then want to eat an apple or a candy bar because, based on your past experience and personality, you know these will satisfy your hunger need. Effective marketing, in the form of creating an awareness of good products at convenient locations, can clearly shape a persons wants.

An issue is whether marketing manipulates prospective customers to buy the wrong thingssay a bad candy bar rather than a good apple to satisfy hunger pangs. This does occur in a free society, and marketing tries to influence what we buy. The question which then arises is: At what point do we want government and society to step in to protect consumers? Most Americans would say they want government to protect us from harmful drugs and unsafe cars, but not from candy bars and soft drinks. The issue is not clearcut, which is why legal and social issues are central to marketing. Because even psychologists and economists still debate the exact meanings of need and want, we shall avoid the semantic arguments and use the terms interchangeably in the rest of the book.

As shown in Figure 1-3, assessing needs involves looking carefully at prospective customers, whether they are children buying M & Ms candy, adults buying Calvin Klein jeans, or firms buying Xerox photocopying machines. The principal activity of a firms marketing department is to carefully scrutinize the consumers to understand what they need.





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