The Contemporary Consumer Experience Hasn’t Escaped Maslow and Kotler… Just Yet.
Maslow’s hierarchy of needs theory provides an insight into human needs which is crucial for understanding the marketing process because it provides an understanding of the framework that consumers use to set expectations. Maslow contends that as humans we all have needs which fall into five categories, these are: self-actualisation, ego needs, social needs, safety & security needs and physiological needs. The psychology of marketing today is often based on Maslow’s research into needs as a means of segmenting markets via demographic lines in order to taper the right message to the right audience. This ties into Kotler’s classic definition of marketing which dictates that marketing is ‘the human activity directed at satisfying needs and wants through the exchange process’ (Kotler & Fox, 1980, p. 29). Kotler is in effect proclaiming that as humans we are motivated by our wants, needs and desires, and that effective marketing is the realisation of these motivations in order to satisfy them through the exchange process. A key take away point from this is that organisational satisfaction can only be achieved by understanding consumers in order to satisfy their expectations. This understanding can also be linked to the marketing concept highlighted in the marketingconcept(ebook) by Dr. Stephen Fanning, where the premise is that ‘organisations that best satisfy the needs of their customers are best placed to satisfy their own needs’ (2018, p. 8).
Achieving customer satisfaction may be harder to establish in modern times as the consumer experience has evolved immensely as consumer behaviours and needs have evolved. It is possible to argue that consumers are more aware, smarter and in tune with their consumer habits than ever before. Melissa Schaefer from the IBM Institute for Business Value reinforces this view by stating that ‘today’s consumers are more connected, savvy, vocal and demanding than ever’ (2010, p. 2) as a result of technology which connects consumers to mass amounts of information and allows them to craft their own experience by placing them in the driver’s seat. With so much control, comes the ability of the consumer to require more profit regarding the benefit they receive and quality they desire from the product, meaning company’s vying for market share may face a tougher challenge to achieve organisational satisfaction.
It is crucial to highlight that a more ‘switched on’ consumer does not necessarily mean a more rational consumer. Conventional consumer theory dictates that consumers try to achieve maximum satisfaction from the available resources they have when making purchases, which infers that humans are agents that base their consumption on purely rational means or utilitarian needs. While this is an important theory to grasp for marketing practitioners in the industry as a base line, it can be a dangerous assumption for a firm to make when wanting to grasp consumer expectations and their emotions. Kotler’s definition of marketing, although less nuanced than more contemporary definitions, still holds some weight in the contemporary marketing world and ties into this because it is just important for what it states as for what it doesn’t state. What is meant by this is that there is no mention of appealing to consumer rationality but rather implies that whatever evolving expectations the consumer may have, successful exchange occurs through the satisfaction of these expectations. As Maslow points out, human behaviour and needs have a direct relationship but one doesn’t necessarily determine the other. What can be inferred by this is that consumers have needs based on many things including their emotions and their cultural context, therefore, consumers are not linear but are dynamic when establishing their purchasing expectations. This is a sentiment which is shared by IDG Communications heavy weights Jon Cummins and Ned Welch who note that ‘consumer decision making does not unfold like a game of Pac-Man, with systematic digestion of information pellets en route to the optimal choice’ (2016). Consequently, realising this complexity may help modern firms better understand and satisfy their ever more demanding consumer base and this is why we are seeing a greater need for the application of behavioural economics, which incorporates psychological insights into human behaviour to explain decision-making.
To illustrate, consumers tend to be brand oriented in the sense that they use brands as a means of positioning themselves in a place within society that reflects what they value within society. This can take the form of buying a t-shirt from Tommy Hilfiger for example, which as a company represents an ode to Americana style and youthfulness and whose products are for individuals who embody an edgy side to life. Tommy Hilfiger may not always be practical in terms of the cost to quality ratio of its products, but the aesthetic of the products and what the brand connotes makes consumers prioritise this brand over many others although seemingly irrational (psychogenic needs). This goes to show that Kotler’s emphasis on the satisfaction of consumer needs is applicable and that in this instance, by building an image of a brand facilitated on the consumer's desires to appear youthful, a firm can still maintain and widen its consumer base well into the future.
References
Cummings, J., & Welch, N. (2016). Irrational Consumption: How consumers really make decisions. Retrieved from https://www.cmo.com.au/article/598360/irrational-consumption-how-consumers-really-make-decisions/
Fanning, S. (2018). The Marketing Concept (ebook). Perth.
Kotler, P., & Fox, K. F. (1980). The Marketing of Social Causes: The First Ten Years. Journal of Marketing, 24–33.
Schaefer, M. (2010). Capitalizing on the Smarter Consumer. New York: IBM Institute for Business Value.
