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begin to assemble a product or service to satisfy them。 Fortunately�察�help 
is at hand。 An American psychologist�察�Abraham Maslow�察�who taught at 
Brandeis University�察�Boston and whose International Business School 
now ranks highly in the Economist¨s survey of top business schools ��see 
the Appendix for more on business school rankings���察�demonstrated in 
his research that `all customers are goal seekers who gratify their needs 
by purchase and consumption¨。 He then went a bit further and classified 
consumer needs into a five´stage pyramid he called the hierarchy of needs。 
Self´actualization 
This is the summit of Maslow¨s hierarchy�察�in which people are looking for 
truth�察�wisdom�察�justice and purpose。 It¨s a need that is never fully satisfied 
Marketing 87 
and according to Maslow only a very small percentage of people ever reach 
the point where they are prepared to pay much money to satisfy such 
needs。 It is le。。 to the likes of Bill Gates and Sir Tom Hunter to give away billions 
to form foundations to dispose of their wealth on worthy causes。 The 
rest of us scrabble around further down the hierarchy。 
Esteem 
Here people are concerned with such ma。。ers as self´respect�察�achievement�察�
a。。ention�察�recognition and reputation。 The benefits that customers are 
looking for include the feeling that others will think be。。er of them if they 
have a particular product。 Much of brand marketing is aimed at making 
consumers believe that by conspicuously wearing the maker¨s label or 
logo so that others can see it�察�it will earn them `respect¨。 Understanding 
how this part of Maslow¨s hierarchy works was vital to the founders of Responsibletravel。
 ��responsibletravel��。 Founded six years ago 
with backing from the late Anita Roddick ��Body Shop�� in Justin Francis¨s 
front room in Brighton�察�with his partner Harold Goodwin�察�it set out to be 
the world¨s first pany to offer environmentally responsible travel and 
holidays。 It was one of the first panies to offer carbon offset schemes 
for travellers and it boasts that it turns away more tour panies trying 
to list on its site than it accepts。 It appeals to consumers who want to be 
recognized in their munities as being socially responsible。 
Social needs 
The need for friends�察�belonging to associations�察�clubs or other groups and 
the need to give and get love are all social needs。 A。。er `lower¨ needs have 
been met�察�these needs�察�which relate to interacting with other people�察�e 
to the fore。 Hotel Chocolat ��hotelchocolat。uk���察�founded by Angus 
Thirlwell and Peter Harris in their kitchen�察�is a good example of a business 
based on meeting social needs。 It markets home´delivered luxury chocolates 
but generates sales by having Tasting Clubs to check out products each 
month。 The concept of the club is that you invite friends round and use the 
firm¨s scoring system to rate and give feedback on the chocolates。 
Safety 
The second most basic need of consumers is to feel safe and secure。 People 
who feel they are in harm¨s way�察�either through their general environment 
or because of the product or service on offer�察�will not be over´interested in 
having their higher needs met。 When Charles Rigby set up World Challenge 
��world´challenge。uk�� to market challenging expeditions to exotic 
locations around the world�察�with the aim of taking young people up to 
around 19 out of their fort zones and teaching them how to overe 
adversity�察�he knew he had a challenge of his own on his hands�此�how to 
88 The Thirty´Day MBA 
make an activity simultaneously exciting and apparently dangerous to 
teenagers�察�while being safe enough for the parents writing the cheques to 
feel fortable。 Six full sections on its website are devoted to explaining 
the safety measures that the pany takes to ensure that unacceptable 
risks are eliminated as far as is humanly possible。 
Physiological needs 
Air�察�water�察�sleep and food are all absolutely essential to sustain life。 Until 
these basic needs are satisfied�察�higher needs such as self´esteem will not be 
considered。 
You can read more about Maslow¨s needs hierarchy and how to take it 
into account in understanding customers on the Net MBA website �─�
netmba 〃 Management 〃 Maslow¨s Hierarchy of Needs��。 
Features�察�benefits and proofs 
While understanding customer needs is vital�察�it is not sufficient on its own 
to help put together a saleable proposition。 Before you can do that�察�you 
have to understand the benefits that customers will get when they purchase。 
Features are what a product or service has or is�察�and benefits are 
what the product does for the customer。 When Nigel Apperley founded his 
business Internet Cameras Direct�察�now Internet Direct ��internetdirect。 
co。uk�� and part of the AIM´listed eXpansy plc�察�while a student at business 
school�察�he knew there was no point in telling customers about SLRs or 
shu。。er speeds。 These are not the end product that customers want�察�they are 
looking for the convenience and economy of buying direct�察�so he planned 
to follow the Dell puter direct sales model and show good pictures。 
Within three years Apperley had annual turnover in excess of ♀20m and 
had moved a long way from his home´based beginnings。 
Look at the example of product features and benefits ��Table 3。1���察�which 
has been extended to include proofs showing how the benefits will be 
Table 3。1 Example showing product features�察�benefits and proofs 
Features Benefits Proofs 
Our maternity clothes are 
designed by fashion experts 
You get to look 
and feel great 
See the press ments in fashion 
magazines 
Our bookkeeping system is 
approved by HM Revenue 
and Customs 
You can sleep 
at night 
Our system is rated No1 by 
the Evaluation centre �─�
evaluationcenter〃accounting 
so。。ware��
Marketing 89 
delivered。 The essential element to remember here is that the customer only 
wants to pay for benefits while the seller has to pick up the tab for all the 
features whether the customers sees them as valuable or not。 Benefits will 
provide the `copy¨ for a business¨s advertising and promotional activities。 
Product/service adoption cycle �C who will 
buy first�拭�
Customers do not sit and wait for a new business to open its doors。 Word 
spreads slowly as the message is diffused throughout the various customer 
groups。 Even then it is noticeable that generally it is the more adventurous 
types who first buy from a new business。 Only a。。er these people have given 
their seal of approval do the `followers¨ e along。 Research shows that 
this adoption process�察�as it is known�察�moves through five distinct customer 
characteristics�察�from innovators to laggards�察�with the overall population 
being different for each group。 ��See Table 3。2。�� 
Table 3。2 The product/service adoption cycle 
Innovators 2。5�ァ�of the overall market 
Early adopters 13。5�ァ�of the overall market 
Early majority 34。0�ァ�of the overall market 
Late majority 34。0�ァ�of the overall market 
Laggards 16。0�ァ�of the overall market 
Total market 100�ァ�
Let¨s suppose you have identified the market for your internet gi。。 service。 
Initially your market has been constrained to affluent professionals within 
5 miles of your home to keep delivery costs low。 So if market research 
shows that there are 100��000 people that meet the profile of your ideal 
customer and they have regular access to the internet�察�the market open for 
exploitation at the outset may be as low as 2��500�察�which is the 2。5 per cent 
of innovators。 
This adoption process�察�from the 2。5 per cent of innovators who make 
up a new business¨s first customers through to the laggards who won¨t 
buy from anyone until they have been in business for 20 years�察�is most 
noticeable with truly innovative and relatively costly goods and services�察�
but the general trend is true for all businesses。 Until you have sold to the 
innovators�察�significant sales cannot be achieved。 So�察�an important first task 
is to identify these customers。 The moral is�此�the more you know about your 
potential customers at the outset�察�the be。。er your chances of success。
90 The Thirty´Day MBA 
One further issue to keep in mind when shaping your marketing strategy 
is that innovators�察�early adopters and all the other sub´segments don¨t 
necessarily use the same media�察�websites�察�magazines and newspapers or 
respond to the same images and messages。 So they need to be marketed to 
in very different ways。 
SEGMENTING MARKETS 
Having established that customers have different needs means that we 
need to organize our marketing effort so as to address those individually。 
However�察�trying to satisfy everyone may mean that we end up satisfying 
no one fully。 The marketing process that helps us deal with this seemingly 
impossible task is market segmentation。 This is the name given to 
the process whereby customers and potential customers are organized 
into clusters or groups of `similar¨ types。 For example�察�a carpet/upholstery 
cleaning business has private individuals and business clients running 
restaurants and guesthouses�察�for example。 
These two segments are fundamentally different�察�with one segment 
being more focused on cost and the other more concerned that the work is 
carried out with the least disruption to their business。 Also�察�each of these 
customer groups is motivated to buy for different reasons and your selling 
message has to be modified accordingly。 
Worthwhile criteria 
These are four useful rules to help decide if a market segment is worth 
trying to sell into�此�
。 Measurability�此�Can you estimate how many customers are in the 
segment�拭�Are there enough to make it worth offering something 
`different¨�拭�
。 Accessibility�此�Can you municate with these customers�察�preferably 
in a way that reaches them on an individual basis�拭�For example�察�you 
could reach the over´50s by advertising in a specialist `older people¨s¨ 
magazine�察�with reasonable confidence that young people will not read 
it。 So if you were trying to promote Scrabble with tiles 50 per cent larger�察�
you might prefer that young people did not hear about it。 If they did�察�it 
might give the product an old´fashioned image。 
。 Open to profitable development�此�The customers mu

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