Maslows marketing theory

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Maslows marketing theory

  1. 1. MARKETING-UTOPIA MASLOWS HIERARCHY OF NEEDSAbraham Maslow developed a theory of personality that has influenced a number of differentfields, including education. This wide influence is due in part to the high level of practicality ofMaslows theory. This theory accurately describes many realities of personal experiences. Manypeople find they can understand what Maslow says. They can recognize some features of theirexperience or behavior which is true and identifiable but which they have never put into words.Maslow is a humanistic psychologist. Humanists do not believe that human beings are pushedand pulled by mechanical forces, either of stimuli and reinforcements (behaviorism) or ofunconscious instinctual impulses (psychoanalysis). Humanists focus upon potentials. Theybelieve that humans strive for an upper level of capabilities. Humans seek the frontiers ofcreativity, the highest reaches of consciousness and wisdom. This has been labeled "fullyfunctioning person", "healthy personality", or as Maslow calls this level, "self-actualizingperson."Maslow has set up a hierarchic theory of needs. All of his basic needs are instinctoid, equivalentof instincts in animals. Humans start with a very weak disposition that is then fashioned fully asthe person grows. If the environment is right, people will grow straight and beautiful, actualizingthe potentials they have inherited. If the environment is not "right" (and mostly it is not) they willnot grow tall and straight and beautiful. www.marketing-utopia.tk (bd.utopia@gmail.com)
  2. 2. MARKETING-UTOPIAMaslow has set up a hierarchy of five levels of basic needs. Beyond these needs, higher levels ofneeds exist. These include needs for understanding, esthetic appreciation and purely spiritualneeds. In the levels of the five basic needs, the person does not feel the second need until thedemands of the first have been satisfied, nor the third until the second has been satisfied, and soon. Maslows basic needs are as follows:Physiological Needs These are biological needs. They consist of needs for oxygen, food, water, and a relatively constant body temperature. They are the strongest needs because if a person were deprived of all needs, the physiological ones would come first in the persons search for satisfaction.Safety Needs When all physiological needs are satisfied and are no longer controlling thoughts and behaviors, the needs for security can become active. Adults have little awareness of their security needs except in times of emergency or periods of disorganization in the social structure (such as widespread rioting). Children often display the signs of insecurity and the need to be safe.Needs of Love, Affection and Belongingness When the needs for safety and for physiological well-being are satisfied, the next class of needs for love, affection and belongingness can emerge. Maslow states that people seek to overcome feelings of loneliness and alienation. This involves both giving and receiving love, affection and the sense of belonging.Needs for Esteem When the first three classes of needs are satisfied, the needs for esteem can become dominant. These involve needs for both self-esteem and for the esteem a person gets from others. Humans have a need for a stable, firmly based, high level of self-respect, and respect from others. When these needs are satisfied, the person feels self-confident and valuable as a person in the world. When these needs are frustrated, the person feels inferior, weak, helpless and worthless.Needs for Self-Actualization When all of the foregoing needs are satisfied, then and only then are the needs for self- actualization activated. Maslow describes self-actualization as a persons need to be and do that which the person was "born to do." "A musician must make music, an artist must paint, and a poet must write." These needs make themselves felt in signs of restlessness. The person feels on edge, tense, lacking something, in short, restless. If a person is hungry, unsafe, not loved or accepted, or lacking self-esteem, it is very easy to know what the person is restless about. It is not always clear what a person wants when there is a need for self-actualization.The hierarchic theory is often represented as a pyramid, with the larger, lower levels representingthe lower needs, and the upper point representing the need for self-actualization. Maslowbelieves that the only reason that people would not move well in direction of self-actualization isbecause of hindrances placed in their way by society. He states that education is one of thesehindrances. He recommends ways education can switch from its usual person-stunting tactics toperson-growing approaches. Maslow states that educators should respond to the potential an www.marketing-utopia.tk (bd.utopia@gmail.com)
  3. 3. MARKETING-UTOPIAindividual has for growing into a self-actualizing person of his/her own kind. Ten points thateducators should address are listed: 1. We should teach people to be authentic, to be aware of their inner selves and to hear their inner-feeling voices. 2. We should teach people to transcend their cultural conditioning and become world citizens. 3. We should help people discover their vocation in life, their calling, fate or destiny. This is especially focused on finding the right career and the right mate. 4. We should teach people that life is precious, that there is joy to be experienced in life, and if people are open to seeing the good and joyous in all kinds of situations, it makes life worth living. 5. We must accept the person as he or she is and help the person learn their inner nature. From real knowledge of aptitudes and limitations we can know what to build upon, what potentials are really there. 6. We must see that the persons basic needs are satisfied. This includes safety, belongingness, and esteem needs. 7. We should refreshen consciousness, teaching the person to appreciate beauty and the other good things in nature and in living. 8. We should teach people that controls are good, and complete abandon is bad. It takes control to improve the quality of life in all areas. 9. We should teach people to transcend the trifling problems and grapple with the serious problems in life. These include the problems of injustice, of pain, suffering, and death. 10. We must teach people to be good choosers. They must be given practice in making good choices. Theory of Human Motivation By Abraham Maslow (1943)In a previous paper (A preface to motivation theory . Psychosomatic Medicine, 1943, 5, 85-92) variouspropositions were presented which would have to be included in any theory of human or workermotivation that could lay claim to being definitive. These conclusions may be briefly summarized asfollows: 1. The integrated wholeness of the organism must be one of the foundation stones of motivation theory . 2. The hunger drive (or any other physiological drive) was rejected as a centering point or model for a definitive theory of motivation. Any drive that is somatically based and localizable was shown to be atypical rather than typical in human motivation. 3. Such a theory should stress and center itself upon ultimate or basic goals rather than partial or superficial ones, upon ends rather than means to these ends. Such a stress would imply a more central place for unconscious than for conscious motivations. 4. There are usually available various cultural paths to the same goal. Therefore conscious, specific, local-cultural desires are not as fundamental in motivation theory as the more basic, unconscious goals. 5. Any motivated behavior, either preparatory or consummatory, must be understood to be a channel through which many basic needs may be simultaneously expressed or satisfied. Typically an act has more than one motivation. 6. Practically all organismic states are to be understood as motivated and as motivating. www.marketing-utopia.tk (bd.utopia@gmail.com)
  4. 4. MARKETING-UTOPIA 7. Human needs arrange themselves in hierarchies of pre-potency. That is to say, the appearance of one need usually rests on the prior satisfaction of another, more pre-potent need. Man is a perpetually wanting animal. Also no need or drive can be treated as if it were isolated or discrete; every drive is related to the state of satisfaction or dissatisfaction of other drives. 8. Lists of drives will get us nowhere for various theoretical and practical reasons. Furthermore any classification of motivations must deal with the problem of levels of specificity or generalization the motives to be classified. 9. Classifications of motivations must be based upon goals rather than upon instigating drives or motivated behavior. 10. Motivation theories should be human-centered rather than animal-centered. 11. The situation or the field in which the organism reacts must be taken into account but the field alone can rarely serve as an exclusive explanation for behavior. Furthermore the field itself must be interpreted in terms of the organism. Field theory cannot be a substitute for motivation theory. 12. Not only the integration of the organism must be taken into account, but also the possibility of isolated, specific, partial or segmental reactions. It has since become necessary to add to these another affirmation. 13. Motivation theory is not synonymous with behavior theory. The motivations are only one class of determinants of behavior. While behavior is almost always motivated, it is also almost always biologically, culturally and situationally determined as well.The Hawthorne Effect - Mayo Studies in Employee Motivation Elton Mayos Hawthorne StudiesThe Hawthorne Studies (also knowns as the Hawthorne Experiments) were conducted from1927 to 1932 at the Western Electric Hawthorne Works in Cicero, Illinois (a suburb ofChicago). This is where professor Elton Mayo examined the impact of work conditions inemployee productivity. Elton Mayo started these experiments by examining the physical andenvironmental influences of the workplace (e.g. brightness of lights, humidity) and later,moved into the psychological aspects (e.g. breaks, group pressure, working hours,managerial leadership) and their impact on employee motivation as it applies toproductivity. The Hawthorne EffectIn essence, the Hawthorne Effect, as it applies to the workplace, can be summarized as"Employees are more productive because the employees know they are being studied."Elton Mayos experiments showed an increase in worker productivity was produced by thepsychological stimulus of being singled out, involved, and made to feel important.Additionally, the act of measurement, itself, impacts the results of the measurement. Justas dipping a thermometer into a vial of liquid can affect the temperature of the liquid beingmeasured, the act of collecting data, where none was collected before creates a situationthat didnt exist before, thereby affecting the results. The Hawthorne Experiments and Employee MotivationElton Mayos studies grew out of preliminary experiments at the Hawthorne plant from 1924to 1927 on the effect of light on productivity. Those experiments showed no clear www.marketing-utopia.tk (bd.utopia@gmail.com)
  5. 5. MARKETING-UTOPIAconnection between productivity and the amount of illumination but researchers began towonder what kind of changes would influence output. Variables Affecting ProductivitySpecifically, Elton Mayo wanted to find out what effect fatigue and monotony had on jobproductivity and how to control them through such variables as rest breaks, work hours,temperature and humidity. In the process, he stumbled upon a principle of humanmotivation that would help to revolutionize the theory and practice of management.Elton Mayo selected two women, and had those two select an additional four from theassembly line, segregated them from the rest of the factory and put them under the eye ofa supervisor who was more a friendly observer than disciplinarian. Mayo made frequentchanges in their working conditions, always discussing and explaining the changes inadvance. Relay AssemblyThe group was employed in assembling telephone relays - a relay being a small but intricatemechanism composed of about forty separate parts which had to be assembled by the girlsseated at a lone bench and dropped into a chute when completed.The relays were mechanically counted as they slipped down the chute. The intent was tomeasure the basic rate of production before making any environmental changes. Then, aschanges were introduced, the impact to effectiveness would be measured by increased ordecreased production of the relays. Feedback mechanismThroughout the series of experiments, an observer sat with the girls in the workshop notingall that went on, keeping the girls informed about the experiment, asking for advice orinformation, and listening to their complaints.The experiment began by introducing various changes, each of which was continued for atest period of four to twelve weeks. The results of these changes are as follows: Work Conditions and Productivity ResultsUnder normal conditions with a forty-eight hour week, including Saturdays, and no restpauses. The girls produced 2,400 relays a week each. 1. They were then put on piecework for eight weeks. o Output increased 2. They were given two five-minute breaks, one in the morning, and one in the afternoon, for a period of five weeks. o Output increased, yet again 3. The breaks were each lengthened to ten minutes. o Output rose sharply 4. Six five-minute breaks were introduced. www.marketing-utopia.tk (bd.utopia@gmail.com)
  6. 6. MARKETING-UTOPIA o The girls complained that their work rhythm was broken by the frequent pauses o Output fell only slightly 5. The original two breaks were reinstated, this time, with a complimentary hot meal provided during the morning break. o Output increased further still 6. The workday was shortened to end at 4.30 p.m. instead of 5.00 p.m. o Output increased 7. The workday was shortened to end at 4.00 p.m. o Output leveled off 8. Finally, all the improvements were taken away, and the original conditions before the experiment were reinstated. They were monitored in this state for 12 more weeks. o Output was the highest ever recorded - averaging 3000 relays a week Elton Mayos Conclusions on Job PerformanceElton Mayo came to the following conclusions as a result of the study: The aptitudes of individuals are imperfect predictors of job performance. Although they give some indication of the physical and mental potential of the individual, the amount produced is strongly influenced by social factors. Informal organization affects productivity. The researchers discovered a group life among the workers. The studies also showed that the relations that supervisors develop with workers tend to influence the manner in which the workers carry out directives. Work-group norms affect productivity. The Hawthorne researchers were not the first to recognize that work groups tend to arrive at norms of what is "a fair days work." However, they provided the best systematic description and interpretation of this phenomenon. The workplace is a social system. The researchers came to view the workplace as a social system made up of interdependent parts. The worker is a person whose attitudes and effectiveness are conditioned by social demands from both inside and outside the work plant. Informal group within the work plant exercise strong social controls over the work habits and attitudes of the individual worker. The need for recognition, security and sense of belonging is more important in determining workers morale and productivity than the physical conditions under which he works.The major finding of the study was that almost regardless of the experimental manipulation,worker production seemed to continually improve. One reasonable conclusion is that theworkers were happy to receive attention from the researchers who expressed an interest inthem. Originally, the study was expected to last one year, but since the findings wereinexplicable when the researchers tried to relate the workers efficiency to manipulatedphysical conditions, the project was incrementally extended to five years. Looking Back on the ExperimentsFor decades, the Hawthorne studies provided the rationale for human relations within theorganization. Then, in 1978, R. H. Franke and J.D. Kaul used a new procedure called "time-series analyses" with the original data and variables, including the Great Depression and the www.marketing-utopia.tk (bd.utopia@gmail.com)
  7. 7. MARKETING-UTOPIAinstance of a managerial discipline in which two insubordinate and mediocre workers werereplaced by two different, productive workers.They discovered that production was most affected by the replacement of the two workersdue to their greater productivity and the effect of the disciplinary action on the otherworkers. The occurrence of the Depression also encouraged job productivity, perhapsthrough the increased importance of jobs and the fear of losing them.Rest periods and a group incentive plan also had a somewhat positive smaller effect onproductivity. These variables accounted for almost all the variation in productivity during theexperimental period. Social science may have been too ready to embrace the originalHawthorne interpretations since it was looking for theories of employee motivation thatwere more humane and democratic. Modern Management LessonsWhat seemed to be most impactful during the experiments was that six individuals becamea team and the team gave itself wholeheartedly and spontaneously to cooperation in theexperiment. Consequently, they felt as if they were participating freely and were happy inthe knowledge that they were working without coercion from above or limitation frombelow.The experimental group had considerable freedom of movement. With the observeroverseeing them, rather than their previous Theory X managers, they werent pushedaround or micromanaged. They were satisfied with the result of working under less pressurethan ever before. In fact, regular medical checks showed no signs of cumulative fatigue andabsence from work declined by 80 percent. Under these conditions, they developed anincreased sense of responsibility. Instead of receiving discipline from higher authority, itemerged from within the group. Applying the Hawthorne Effect to Employee MotivationSuppose you select a management trainee and provide specialized training in managementskills not currently possessed. Without saying a word, youve given the trainee the feelingthat she is so valuable to the organization that youll spend time and money to develop herskills. She feels shes on a track to the top, which, in turn, motivates her to work harder andmore effectively. This form of employee motivation is independent of any particular skills orknowledge she may have gained from the training session. Thats the Hawthorne Effect atwork.In a way, the Hawthorne Effect can be construed as an enemy of the modern manager.Carrying the theory further toward cynicism, it could be said that it doesnt matter how youmanage, because the Hawthorne Effect will produce the positive outcome you want.Tracking Process Improvements - Gathering Performance MetricsUnfortunately, the measurement of performance can unintentionally affect the performanceitself. In order to determine the impact of a new or modified process, someone needs tosubtly observe workers on the job and monitor production. Occasionally, managers object, www.marketing-utopia.tk (bd.utopia@gmail.com)
  8. 8. MARKETING-UTOPIAsaying that observation isnt a valid test, "Of course theyll perform better, youre watchingthem."The power of the social setting and peer group dynamics was reinforced for Elton Mayo laterin the Hawthorne Studies, when he saw an unusual reaction to his original experiments. Agroup of 14 men participating in a similar study restricted production because they weredistrustful of management and thought that their quotas would be artificially elevated ifthey were to perform beyond the norm during these studies.If workers suddenly sense an environmental shift from a Theory X organization to a TheoryY organization, this can trigger false positives from nearly any otherwise meaningless oreven slightly detrimental process change. Involving your workers in setting their owndirection, showing them that you care about how their job is progressing, and fostering amore positive relationship will create beneficial productivity impacts.Conversely, if your environment one of mistrust and fear, and the workers unite in rebellionof managements efforts to control and oppress them, there will be little a manager can doto effect positive change without first handling this toxic situation.Someone Really Cares About Me? - Benefits of the Hawthorne EffectElton Mayo realized that the women, exercising a freedom they didnt have on the factoryfloor, had formed a social atmosphere that also included the productivity-tracking observer.They talked and joked with one another. They began to meet socially outside of work.When these women were singled out from the rest of the factory workers, it raised theirself-esteem. When they were allowed to have a friendly relationship with their supervisor,they felt happier at work. When he discussed changes in advance with them, and allowedthem a form of participation, they felt like part of the team. Elton Mayo had secured thegirls cooperation and loyalty. This explains why productivity rose even when he took awaytheir rest breaks.Theres nothing wrong with intentionally using the Hawthorne Effect to reach your goals. Infact, the Hawthorne Effect has also been called the Somebody Upstairs Cares syndrome.When people spend a large portion of their time at work, they require a sense of belonging,of being part of something bigger than themselves. When they do, they are more effective.This effect has been described as the reward you reap when you pay attention to people.The mere act of showing people that youre concerned about them usually spurs them tobetter job performance.Thats the true Hawthorne Effect. www.marketing-utopia.tk (bd.utopia@gmail.com)
  9. 9. MARKETING-UTOPIA Douglas McGregors Theory X and Theory YIn his 1960 management book, The Human Side of Enterprise, Douglas McGregor madehis mark on the history of organizational management and motivational psychology when heproposed the two theories by which managers perceive employee motivation. He referred tothese opposing motivational methods as Theory X andTheoryY management. Each assumes that the managers role is to organize resources, includingpeople, to best benefit the company. However, beyond this commonality, theyre quitedissimilar. Theory X ManagementAccording to McGregor, Theory X leadership assumes the following: Work is inherently distasteful to most people, and they will attempt to avoid work whenever possible. Most people are not ambitious, have little desire for responsibility, and prefer to be directed. Most people have little aptitude for creativity in solving organizational problems. Motivation occurs only at the physiological and security levels of Maslows Needs Hierarchy. Most people are self-centered. As a result, they must be closely controlled and often coerced to achieve organizational objectives Most people resist change. Most people are gullible and unintelligent.Essentially, theory x assumes that the primary source of most employee motivation ismonetary, with security as a strong second. The Hard Approach and Soft ApproachUnder Theory X, management approaches to motivation range from a hard approach toa soft approach.The hard approach to motivation relies on coercion, implicit threats, micromanagement, andtight controls -- essentially an environment of command and control. The soft approach,however, is to be permissive and seek harmony in the hopes that, in return, employees willcooperate when asked. However, neither of these extremes is optimal. The hard approachresults in hostility, purposely low-output, and extreme union demands. The soft approachresults in increasing desire for greater reward in exchange for diminishing work output.It would appear that the optimal approach to human resource management would be liesomewhere between these extremes. However, McGregor asserts that neither approach isappropriate since the foundations of theory x are incorrect. The Problem with X TheoryDrawing on Maslows Hierarchy of Needs, McGregor argues that a need, once satisfied, nolonger motivates. The company relies on monetary rewards and benefits to satisfy www.marketing-utopia.tk (bd.utopia@gmail.com)
  10. 10. MARKETING-UTOPIAemployees lower level needs. Once those needs have been satisfied, the motivation isgone. This management style, in fact, hinders the satisfaction of higher-level needs.Consequently, the only way that employees can attempt to satisfy higher level needs atwork is to seek more compensation, so it is quite predictable that they will focus onmonetary rewards. While money may not be the most effective way to self-fulfillment, itmay be the only way available. People will use work to satisfy their lower needs, and seekto satisfy their higher needs during their leisure time. Unfortunately, employees can bemost productive when their work goals align with their higher level needs.McGregor makes the point that a command and control environment is not effectivebecause it relies on lower needs for motivation, but in modern society those needs aremostly satisfied and thus no longer motivate. In this situation, one would expect employeesto dislike their work, avoid responsibility, have no interest in organizational goals, resistchange, etc., thus creating a self-fulfilling prophecy. To McGregor, motivation seemed morelikely with the Theory Y model. Theory YThe higher-level needs of esteem and self-actualization are continuing needs in that theyare never completely satisfied. As such, it is these higher-level needs through whichemployees can best be motivated.In strong contrast to Theory X, Theory Y leadership makes the following generalassumptions: Work can be as natural as play if the conditions are favorable. People will be self-directed and creative to meet their work and organizational objectives if they are committed to them. People will be committed to their quality and productivity objectives if rewards are in place that address higher needs such as self-fulfillment. The capacity for creativity spreads throughout organizations. Most people can handle responsibility because creativity and ingenuity are common in the population. Under these conditions, people will seek responsibility.Under these assumptions, there is an opportunity to align personal goals with organizationalgoals by using the employees own need for fulfillment as the motivator. McGregor stressedthat Theory Y management does not imply a soft approach.McGregor recognized that some people may not have reached the level of maturity assumedby Theory Y and therefore may need tighter controls that can be relaxed as the employeedevelops.XY Theory Management Application - Business Implications for WorkforceMotivationIf Theory Y holds true, an organization can apply these principles of scientific managementto improve employee motivation: www.marketing-utopia.tk (bd.utopia@gmail.com)
  11. 11. MARKETING-UTOPIA Decentralization and Delegation - If firms decentralize control and reduce the number of levels of management, managers will have more subordinates and consequently will be forced to delegate some responsibility and decision making to them. Job Enlargement - Broadening the scope of an employees job adds variety and opportunities to satisfy ego needs. Participative Management - Consulting employees in the decision making process taps their creative capacity and provides them with some control over their work environment. Performance Appraisals - Having the employee set objectives and participate in the process of evaluating how well they were met.If properly implemented, such an environment would result in a high level of workforcemotivation as employees work to satisfy their higher level personal needs through theirjobs. Maslow Needs MarketingWhat would it be worth to you if you could predict the buying trends over the next year? How about eventhe next few weeks? By using the principles of the Maslow hierarchy of needs, you can use the news topredict what your customers will be buying in the future.Early in his career, Abraham Maslow noticed that certain things were much more important to have thanothers. For instance, water is more important to have than food. Because you would die of thirst within afew days, but most people would live over a month without food.On the other hand, you would die within a couple of minutes without oxygen. So, air is much moreimportant than water.You may be wondering what this has to do with marketing. Well, hang in there. When the reality hits you,it will be worth the wait.Maslow also noticed that there was a regular order to needs that were added when people had enough ofthe basic necessities. The first level of needs he labeled as physiological (basic needs for body function)needs.When those needs were taken care of, people would then want to take care of safety needs.Safety needsconsist of things like a safe environment, protection and stable government. These are the needs thatkeep you having anxiety and fear.The next level of needs are those dealing with love and belonging. These are things like friends, a lifemate and children. But, if you lose your safety or your basic body needs, you may not worry about yourfamily and friends until those needs are taken care of.If your needs of love and belonging are met, you then would tend to try and get your needs for esteemmet. These needs include such things as fame, recognition and reputation. These esteem needs includenot only what other people think of you, but that you think of yourself.The final level is different than the previous four. It involves the desire to be all that you can be. This isthe level where people try to maximize their potential. It is called the self-actualization level. www.marketing-utopia.tk (bd.utopia@gmail.com)
  12. 12. MARKETING-UTOPIANow comes the payoff. How can you use this knowledge to predict buying patterns? Well, you may havealready figured it out. If not, get ready for a big payoff.As an example, think of the events of 9/11. On that day, the world changed. There was an immediaterealization of the threat to all civilized nations. At that point, the needs on many minds were thoseprimarily of safety.You can probably think of what you would want to market because of that change. There would be a bigdemand on things that would improve peoples safety. Demand for everything from training of securitypersonnel to personal firearms increased.Because of where the need for safety is placed in the hierarchy, there was no real change in the demandfor food and water - or clean air for that matter.However, consider what was not - in no way - on anyones mind at that point. Things like art classes andeven politics took a back seat to the basic need for safety.By keeping track of current events and public opinion, you can predict to a great extent what people aregoing to be spending their time and money on. When things are going very well, they will tend to spendmore money - sometimes huge amounts - on things higher up the pyramid.So, here is the rule. When things are going bad. Market things in the layer of the hierarchy where peoplefeel their need. When things are going well, put more emphasis on marketing things that appeal to themore self satisfying side of people. www.marketing-utopia.tk (bd.utopia@gmail.com)

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