Question

Explain why the Pyramid of Needs by Abraham Maslow is a useful tool for entrepreneurs.

Answer 1

PYRAMID OF NEEDS IS A USEFUL TOOL FOR ENTREPRENEURS BECAUSE OF THE FOLLOWING REASONS:

• HUMAN BEHAVIOUR DRIVERS: BY ANALYSING THE NEEDS OF THE CUSTOMERS, ENTREPRTENUERS CAN IDENTIFY THE KEY DRIVERS OF THEIR BEHAVIOUR. THESE KEY DRIVERS WILL HELP THEM, TO KNOW THAT WHY CUSTOMERS CHOOSE ONE BRAND OVER OTHER. THEY WILL ALSO GET TO KNOW THAT HOW AND WHY THE CUSTOMERS BUILD RELATIONSHIPS WITH THE BRANDS.
• MOVE BEYOND FEATURE-BENEFITS: BUSINESSMEN PROVIDE FEATURED PRODUCTS TO THE CONSUMERS WHICH SATISFY THEIR LOWER LEVEL NEEDS. BUT FROM PYRAMID STUDY, THEY CAN IDENTIFY THE HIGHER LEVEL NEEDS OF CUSTOMERS AND CAN ALSO PROVIDE THE CUSTOMERS WITH SERVICES AND PRODUCTS THAT WILL SATISFY THEIR HIGHER LEVEL NEEDS.
• CUSTOMER LOYALTY: BY SATISFYING HIGHER LEVEL NEEDS, THEY CAN BECOME PERMANENT IN THE MINDS OF CUSTOMERS. THIS WILL MAKE CUSTOMER LOYAL TOWARDS THE BRAND BECAUSE HE WILL START BUILDING UP THE TRUST IN THE BRAND.
• BENEFIT TO EMPLOYEES: APART FROM CUSTOMERS, ENTREPRENEURS ALSO NEED TO LOOK AFTER THE NEEDS OF THEIR EMPLOYEES. THE MASLOW HIERARCHY WILL HELP THEM KNOW THEIR EMPLOYEES NEEDS AND COME UP WITH THE TECHNIQUES AND STRATEGIES TO FULFILL THEM. THIS WILL INCREASE PRODUCTIVITY OF EMPLOYEES.
• NEED FOR MANAGERS: THE MANAGERS CAN CONNECT EASILY WITH THEIR SUBORDINATES AND UNDERSTAND THEIR REQUIREMENTS WHEN THEY'LL STUDY PYRAMID OF NEEDS. THIS WILL HELP THEM TO EASILY CONNECT PSYCHOLOGICALLY.
• TO MOTIVATE EMPLOYEES: THE MANAGERS CAN MOTIVATE THE EMPLOYEES WHEN THEIR LOWER LEVELS NEEDS ARE FULFILLED, TO WORK TOWARDS FULFILLMENT OF HIGHER LEVEL NEEDS. THIS WAY THEIR MORALE AND PRODUCTIVITY WILL BE INCREASED.
• TO FULFILL INDIVIDUAL AND ORGANISATIONAL GOALS: STUDY OF PYRAMID OF NEEDS WILL ENABLE THE EMPLOYEES TO FULFILL THEIR PERSONAL GOALS AND ALONG WITH THAT ORGANISATIONAL GOALS WILL ALSO BE ACHIEVED.