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YOUNG MARKETERS ELITE DEVELOPMENT PROGRAM 3
ASSIGNMENT 2.1 – CONSUMER INSIGHT 1
Đình Giang – Nhật Minh – Khánh Thy (Group 2)
The question ‘why’ is not used to understand need states – only the questions
‘what’, ‘when’, ‘where’, ‘how’, ‘who’, all of which relate to behaviour rather
than attitude.
what is NEED STATE
Need states are driving needs that determine what particular brand or product I will chose.
In other words, need states are context – dependent needs.
Basically, need state is a need at a specific point in time.
For example about beverage category
I’m thirsty now, I want to drink something. But what exactly product or brand that I will
chose depends on:
• Who I am: I am young and want to enjoy 100% every moment in my life => Chose
Pepsi
• Whom I go with: I’m have a private meeting with my boss => Coffee at quiet
coffee shop is a good choice
• What is available nearby: I have lots of orange juice in my refrigerator => Taking
one of them is the most convenient.
• How I feel physically: I feel sleepy and lack energy at the moment => I would
rather consume energy drink such as Redbull.
• How I feel emotionally: I want to buy some drinks that my family can enjoy
together happily in Tet => Coke with ‚open happiness‛ mission is on top of my
mind.
• When I want to drink: At short break time in school, I want to choose a small drink
to help me relax instantly and have fun with friends => ‚Lon mi nhon‛ Coke (Small
can of Coke) is my dominant choice.
• What is my concern: I care much about health and think soft drink has harmful
substances to my health => Pure water is my only choice, then I choose Aquafina
because I also love fashion.
• Etc“
People once drank because they were thirsty. Now
they drink to hydrate, boost energy, relax, refresh or
beautify.
(Larry Light, CEO of Arcature)
‚
Why do we have to define ‘need state‛?
‚Need states studies‛ is the good way for product
development teams to identify white space for
innovation. These studies segment consumers on the
basis of what motivates them to select or consume
various products of interest.
For example:
In the ‚toothpaste‛ category, there are many traditional
need states: Prevent cavities , Teeth Whitening, Fresh breath.
By the time, we discover some new need states and provide
innovations to fill the gaps: Protecting Gums, Fruit Flavor (for
kids), etc“
Maslow's hierarchy of needs,
which was fully expressed in 1954,
represented as a pyramid with the
more basic needs at the bottom.
Maslow's theory suggests
that the most basic level of
needs must be met before
the individual will strongly
desire (or focus motivation
upon) the secondary or
higher level needs. As
we can see while
travelling up the
hierarchy, each
need becomes
less
essential for
survival and
more
emotional.
MASLOW’S HIERARCHY OF NEEDS
PHYSIOLOGICAL NEEDS are the physical requirements for human survival and are
thought to be the most important. They should be met first.
• Ex: Hao Hao Noodles serves the need of food.
• Lavi serves the need of water.
The second level includes SAFETY NEEDS, which are things that give us a sense of security in
all aspects of our lives. They include health, family, a job and so on.
• Ex: Condom “OK” protects you from sexually transmitted infections.
• Strongbox “Solid” is where your valuables are locked.
• Prudential offers Life Insurance service to help consumer feel safe about troubles in life.
The third level of the hierarchy includes LOVE AND BELONGING NEEDS. These are needs humans
have related to relationships, family and friendships.
• Ex: Social network “Flirtchi” helps people get acquainted with others and find lovers.
• “Hanh trinh ket noi nhung trai tim” TV Show connects people and “makes” couples for those
who participate.
• Fandom “Sky” of Son Tung MTP singer provides a place for those who admire Son Tung and
want to connect with the love-same-idol people.
ESTEEM is the need for recognition, status and prestige, desire for self-respect.
• Ex: Luxury brands such as Gucci, Louis Vouton, Vertu, etc“ give respect-from-other to those who
have high status or lots of money.
• Employer branding: In Vietnam, becoming an employee of Unilever is big inner pride
At the top of the hierarchy is the need for SELF-ACTUALIZATION - the need to find self-fulfillment, self-growth
and realize one’s potential. It is this need that Maslow believed people are always striving to satisfy but few
achieve. A brand that creates self-actualizing experience for consumers such that they can feel like they are
being all they can be will have evangelical and loyal fans.
• Ex: Nike pioneered the focus on self-actualization with their famous "Just Do It" tag line. Nike embraces their
role in helping people accomplish self-actualization by becoming a source of inspiration.
• Home Depot with "You can do it. We can help‛ slogan
BMW was established in
Germany in 1917 as a
manufacturer of aircraft
engines. In the end of 1920s,
BMW decided to produce cars.
With proposition ‚Ultimate
driving machine‛, BMW
provided high-quality cars for
people to travel. In Germany,
BMW was just a medium brand
car who sold cars for
transportation (Stage 1 –
Physiological needs)
During the time, BMW
continuously up-graded their
cars to be more luxurious and
sophisticated. Nowadays, BMW is
seen as luxury brand car for
those who are rich and
successful. BMW gives consumer
self-confident and self-esteem of
controlling their success (Stage 4
– Self esteem). To target
consumers of BMW, ‚high-
quality‛ is an obvious attribute of
their car, they need more than a
car with high quality. Therefore,
BMW recently changed
proposition from ‚Ultimate driving
machine‛ to ‚Sheer driving
pleasure‛ which gives
consumers something more
beautiful, enjoyable and
successful.
Dream motorbike of Honda appeared in Vietnam in 1992. At that time, the
price of 1 Dream motorbike was compared to a medium car nowadays. Dream
motorbike became ‚a thing must be owned‛ for rich people in the past.
Therefore, Honda served the need on Stage 4 – Self-esteem of Vietnamese
people 20 years ago.
To have more profit by increase penetration, Honda produced some Dream
motorbikes with lower price so that more people could afford to buy. It was said
that ‚Dream‛ is no longer a dream anymore because everyone could buy it.
Nowadays, Honda just served the need on Stage 1 – Physiological Needs
(Transportation) in Vietnam market.
Reference: http://vnexpress.net/tin-tuc/oto-xe-may/honda-dream-va-nguoi-
viet-giac-mo-ngay-cu-3286586.html
MASLOW’S HIERARCHY OF NEEDS & MARKETING
By understanding where our brand is on Maslow’s hierarchy of
needs, we can have relevant communications to consumers that
appeal to their particular need. In other words, as marketers, we
should consider the level of need that your target customers are
trying to meet by our products, and market our products in such
a way as to convince consumers that they will fulfill exactly that
need.
Take ‚Young Marketers 3 Final Round Solution‛ of Xcape team
as example. They try to sell ‚nutrition rice‛ for consumers which is
on Stage 1 of Maslow’s hierarchy of needs. But at the same time,
when this need is not fulfilled, they also try to sell ‚love‛ which is
on Stage 3 of Maslow’s hierarchy of needs. It means that they sell
‚functional benefit‛ and ‚emotional benefit‛ together when
the ‚functional benefit‛ is still not accepted by consumers. Our
group think it is a weakness of this solution.
Example 1
Example 2
NEED is a consumer's
basic human
requirement for a
product's or service's
which help them to
survive (survive with
physical needs and
psychological needs) .
The need comes from
human nature, not by
social or marketing
people created.
WANT is a need
which is sharpened
by consumer‘s
culture, hobbies,...
(can be replaced by
other products or
services in same
category to meet
that need)
Brands fulfill consumers’ want.
Because: Brand fulfill consumers’ want while products or services meet consumers’
need.
If brands only meet the basic needs of the customer, there will be no brand
differentiation and competitive advantage for brands and other sectors. Only by
meeting the want of customers, the brand can make a difference in the perception
of consumers.
NEED & WANT
People NEED a means of
transportation which
help them travel faster.
In the past, people
WANTED to go by horse
wagons or electric cars.
Nowadays, some want to
go by buses while others
want to go by
motorbikes.
Example
Need
Unaware of
motivation
Unconscious
need
Well aware of
motivation
Intuitive
motivation
Intuitive need
Rational
motivation
Secret motivation
Secret need
Willing-to-express
motivation
Usually-happen
motivation
Habitual need
Happen-by -condition
motivation
Un-anticipated need
When people are motivated to fulfill the ‚shortage‛ feeling. They are in stage of
need. So the nature of motivation determines many kinds of need
SECRET – HABITUAL – INTUITIVE – UN-ANTICIPATED – UNCONSCIOUS need
HABITUAL NEED: the stage of requirement happens regularly and become habits
Ex: People need food/water to satisfy their hunger/thirst every day. So having lunch/dinner become their habit
UN-ANTICIPATED NEED: the stage of requirement that happens based on a particular condition or stimulus
Ex: You need an umbrella or raincoat only when it rains
Vietnamese people buy and eat moon cakes only at Mid Autumn festival
SECRET NEED: the stage of requirement that people are not willing to disclose, often intangible in nature
Ex: When a person buy a luxury car, the main reason is to enjoy the extraordinary vehicle performance. Besides, equally
important need of owning luxury car is for status symbol, which he hold as a secret
INTUITIVE NEED: the stage of requirement based on intuitive motivation, when a person feel in need of something based on
emotional reasoning rather than rational reasoning
Ex: At Tet, Northern Vietnamese people have the custom of buying salt at the beginning of new year. It is considered to
bringing lucky for a whole year ahead without any rational reasoning.
UNCONSCIOUS NEED: the stage that people are in need without knowing motivation.
Ex: Need for information: Teenagers spend lot of time reading blog, website“ unconsciously every day to satisfy the need of
information. However, they do not clearly know why they do that, and what to do with information
Procrastination: When student are in preparation for final exam, they often have ‚sudden need‛ to go online or listen to
music instead. This action does not have rational reasoning and even make them feel worse after that.
SECRET – HABITUAL – INTUITIVE – UN-ANTICIPATED – UNCONSCIOUS need
EXAMPLE
FUNCTIONAL BENEFITS
of a brand are related
to the uses of product
or service itself not easily
can be identified or to
differentiated from
others brand in same
category
EMOTIONAL BENEFITS of a brand
come from inside of consumers’
personalities and related to the
better feelings they have after
using brand ’s product or service.
However, there are
some market leading
brands which their
products or services are
so high quality.
Therefore, it is functional
benefit that differs them
from others brand in
same category.
Example: Product
razors of Gillette
1. There are some brands have
not reached emotional benefits
yet. ( they are in Like it stage on
Brand Love Curve) .
Example: Miliket Noodles
2. There are some brands don’t
have functional benefits but they
have emotional benefits.
Example: Pet Rock (After listening
to the people around
complaining about the trouble of
pets, Gary Dahl came up with the
idea that most of them thought to
be crazy to sell the pet rock)
FUNCTIONAL benefits & EMOTIONAL benefits
In general, emotional benefits
base on functional benefits.
Brands often fulfill the functional
benefits before bring in emotional
benefits to consumers.
Example
‚Gác Hoa‛ coffee shop
Functional benefit: a coffee shop
which is decorated with flowers.
Emotional benefit: gives
consumers who love flowers joyful
feeling.
FUNCTIONAL EMOTIONAL
Thank you

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Young Marketers Elite 3 - Assignment 2.1 - Nhóm 2 - Giang, Minh, Thy

  • 1. YOUNG MARKETERS ELITE DEVELOPMENT PROGRAM 3 ASSIGNMENT 2.1 – CONSUMER INSIGHT 1 Đình Giang – Nhật Minh – Khánh Thy (Group 2)
  • 2. The question ‘why’ is not used to understand need states – only the questions ‘what’, ‘when’, ‘where’, ‘how’, ‘who’, all of which relate to behaviour rather than attitude. what is NEED STATE Need states are driving needs that determine what particular brand or product I will chose. In other words, need states are context – dependent needs. Basically, need state is a need at a specific point in time. For example about beverage category I’m thirsty now, I want to drink something. But what exactly product or brand that I will chose depends on: • Who I am: I am young and want to enjoy 100% every moment in my life => Chose Pepsi • Whom I go with: I’m have a private meeting with my boss => Coffee at quiet coffee shop is a good choice • What is available nearby: I have lots of orange juice in my refrigerator => Taking one of them is the most convenient. • How I feel physically: I feel sleepy and lack energy at the moment => I would rather consume energy drink such as Redbull. • How I feel emotionally: I want to buy some drinks that my family can enjoy together happily in Tet => Coke with ‚open happiness‛ mission is on top of my mind. • When I want to drink: At short break time in school, I want to choose a small drink to help me relax instantly and have fun with friends => ‚Lon mi nhon‛ Coke (Small can of Coke) is my dominant choice. • What is my concern: I care much about health and think soft drink has harmful substances to my health => Pure water is my only choice, then I choose Aquafina because I also love fashion. • Etc“ People once drank because they were thirsty. Now they drink to hydrate, boost energy, relax, refresh or beautify. (Larry Light, CEO of Arcature) ‚ Why do we have to define ‘need state‛? ‚Need states studies‛ is the good way for product development teams to identify white space for innovation. These studies segment consumers on the basis of what motivates them to select or consume various products of interest. For example: In the ‚toothpaste‛ category, there are many traditional need states: Prevent cavities , Teeth Whitening, Fresh breath. By the time, we discover some new need states and provide innovations to fill the gaps: Protecting Gums, Fruit Flavor (for kids), etc“
  • 3. Maslow's hierarchy of needs, which was fully expressed in 1954, represented as a pyramid with the more basic needs at the bottom. Maslow's theory suggests that the most basic level of needs must be met before the individual will strongly desire (or focus motivation upon) the secondary or higher level needs. As we can see while travelling up the hierarchy, each need becomes less essential for survival and more emotional. MASLOW’S HIERARCHY OF NEEDS PHYSIOLOGICAL NEEDS are the physical requirements for human survival and are thought to be the most important. They should be met first. • Ex: Hao Hao Noodles serves the need of food. • Lavi serves the need of water. The second level includes SAFETY NEEDS, which are things that give us a sense of security in all aspects of our lives. They include health, family, a job and so on. • Ex: Condom “OK” protects you from sexually transmitted infections. • Strongbox “Solid” is where your valuables are locked. • Prudential offers Life Insurance service to help consumer feel safe about troubles in life. The third level of the hierarchy includes LOVE AND BELONGING NEEDS. These are needs humans have related to relationships, family and friendships. • Ex: Social network “Flirtchi” helps people get acquainted with others and find lovers. • “Hanh trinh ket noi nhung trai tim” TV Show connects people and “makes” couples for those who participate. • Fandom “Sky” of Son Tung MTP singer provides a place for those who admire Son Tung and want to connect with the love-same-idol people. ESTEEM is the need for recognition, status and prestige, desire for self-respect. • Ex: Luxury brands such as Gucci, Louis Vouton, Vertu, etc“ give respect-from-other to those who have high status or lots of money. • Employer branding: In Vietnam, becoming an employee of Unilever is big inner pride At the top of the hierarchy is the need for SELF-ACTUALIZATION - the need to find self-fulfillment, self-growth and realize one’s potential. It is this need that Maslow believed people are always striving to satisfy but few achieve. A brand that creates self-actualizing experience for consumers such that they can feel like they are being all they can be will have evangelical and loyal fans. • Ex: Nike pioneered the focus on self-actualization with their famous "Just Do It" tag line. Nike embraces their role in helping people accomplish self-actualization by becoming a source of inspiration. • Home Depot with "You can do it. We can help‛ slogan
  • 4. BMW was established in Germany in 1917 as a manufacturer of aircraft engines. In the end of 1920s, BMW decided to produce cars. With proposition ‚Ultimate driving machine‛, BMW provided high-quality cars for people to travel. In Germany, BMW was just a medium brand car who sold cars for transportation (Stage 1 – Physiological needs) During the time, BMW continuously up-graded their cars to be more luxurious and sophisticated. Nowadays, BMW is seen as luxury brand car for those who are rich and successful. BMW gives consumer self-confident and self-esteem of controlling their success (Stage 4 – Self esteem). To target consumers of BMW, ‚high- quality‛ is an obvious attribute of their car, they need more than a car with high quality. Therefore, BMW recently changed proposition from ‚Ultimate driving machine‛ to ‚Sheer driving pleasure‛ which gives consumers something more beautiful, enjoyable and successful. Dream motorbike of Honda appeared in Vietnam in 1992. At that time, the price of 1 Dream motorbike was compared to a medium car nowadays. Dream motorbike became ‚a thing must be owned‛ for rich people in the past. Therefore, Honda served the need on Stage 4 – Self-esteem of Vietnamese people 20 years ago. To have more profit by increase penetration, Honda produced some Dream motorbikes with lower price so that more people could afford to buy. It was said that ‚Dream‛ is no longer a dream anymore because everyone could buy it. Nowadays, Honda just served the need on Stage 1 – Physiological Needs (Transportation) in Vietnam market. Reference: http://vnexpress.net/tin-tuc/oto-xe-may/honda-dream-va-nguoi- viet-giac-mo-ngay-cu-3286586.html MASLOW’S HIERARCHY OF NEEDS & MARKETING By understanding where our brand is on Maslow’s hierarchy of needs, we can have relevant communications to consumers that appeal to their particular need. In other words, as marketers, we should consider the level of need that your target customers are trying to meet by our products, and market our products in such a way as to convince consumers that they will fulfill exactly that need. Take ‚Young Marketers 3 Final Round Solution‛ of Xcape team as example. They try to sell ‚nutrition rice‛ for consumers which is on Stage 1 of Maslow’s hierarchy of needs. But at the same time, when this need is not fulfilled, they also try to sell ‚love‛ which is on Stage 3 of Maslow’s hierarchy of needs. It means that they sell ‚functional benefit‛ and ‚emotional benefit‛ together when the ‚functional benefit‛ is still not accepted by consumers. Our group think it is a weakness of this solution. Example 1 Example 2
  • 5. NEED is a consumer's basic human requirement for a product's or service's which help them to survive (survive with physical needs and psychological needs) . The need comes from human nature, not by social or marketing people created. WANT is a need which is sharpened by consumer‘s culture, hobbies,... (can be replaced by other products or services in same category to meet that need) Brands fulfill consumers’ want. Because: Brand fulfill consumers’ want while products or services meet consumers’ need. If brands only meet the basic needs of the customer, there will be no brand differentiation and competitive advantage for brands and other sectors. Only by meeting the want of customers, the brand can make a difference in the perception of consumers. NEED & WANT People NEED a means of transportation which help them travel faster. In the past, people WANTED to go by horse wagons or electric cars. Nowadays, some want to go by buses while others want to go by motorbikes. Example
  • 6. Need Unaware of motivation Unconscious need Well aware of motivation Intuitive motivation Intuitive need Rational motivation Secret motivation Secret need Willing-to-express motivation Usually-happen motivation Habitual need Happen-by -condition motivation Un-anticipated need When people are motivated to fulfill the ‚shortage‛ feeling. They are in stage of need. So the nature of motivation determines many kinds of need SECRET – HABITUAL – INTUITIVE – UN-ANTICIPATED – UNCONSCIOUS need
  • 7. HABITUAL NEED: the stage of requirement happens regularly and become habits Ex: People need food/water to satisfy their hunger/thirst every day. So having lunch/dinner become their habit UN-ANTICIPATED NEED: the stage of requirement that happens based on a particular condition or stimulus Ex: You need an umbrella or raincoat only when it rains Vietnamese people buy and eat moon cakes only at Mid Autumn festival SECRET NEED: the stage of requirement that people are not willing to disclose, often intangible in nature Ex: When a person buy a luxury car, the main reason is to enjoy the extraordinary vehicle performance. Besides, equally important need of owning luxury car is for status symbol, which he hold as a secret INTUITIVE NEED: the stage of requirement based on intuitive motivation, when a person feel in need of something based on emotional reasoning rather than rational reasoning Ex: At Tet, Northern Vietnamese people have the custom of buying salt at the beginning of new year. It is considered to bringing lucky for a whole year ahead without any rational reasoning. UNCONSCIOUS NEED: the stage that people are in need without knowing motivation. Ex: Need for information: Teenagers spend lot of time reading blog, website“ unconsciously every day to satisfy the need of information. However, they do not clearly know why they do that, and what to do with information Procrastination: When student are in preparation for final exam, they often have ‚sudden need‛ to go online or listen to music instead. This action does not have rational reasoning and even make them feel worse after that. SECRET – HABITUAL – INTUITIVE – UN-ANTICIPATED – UNCONSCIOUS need EXAMPLE
  • 8. FUNCTIONAL BENEFITS of a brand are related to the uses of product or service itself not easily can be identified or to differentiated from others brand in same category EMOTIONAL BENEFITS of a brand come from inside of consumers’ personalities and related to the better feelings they have after using brand ’s product or service. However, there are some market leading brands which their products or services are so high quality. Therefore, it is functional benefit that differs them from others brand in same category. Example: Product razors of Gillette 1. There are some brands have not reached emotional benefits yet. ( they are in Like it stage on Brand Love Curve) . Example: Miliket Noodles 2. There are some brands don’t have functional benefits but they have emotional benefits. Example: Pet Rock (After listening to the people around complaining about the trouble of pets, Gary Dahl came up with the idea that most of them thought to be crazy to sell the pet rock) FUNCTIONAL benefits & EMOTIONAL benefits In general, emotional benefits base on functional benefits. Brands often fulfill the functional benefits before bring in emotional benefits to consumers. Example ‚Gác Hoa‛ coffee shop Functional benefit: a coffee shop which is decorated with flowers. Emotional benefit: gives consumers who love flowers joyful feeling. FUNCTIONAL EMOTIONAL