Maslow’s Hierarchy of Needs for Home Business

Have you ever heard of Maslow’s Hierarchy of Needs? Today I'd like to discuss the connection between Maslow's Hierarchy and online marketing. You may have learned about the theory at the college, and I remember it from my business studies years ago. It was a theory in psychology by Abraham Maslow, proposed in his paper "A Theory of Human Motivation" in 1943.

So there are 5 levels of "needs" from the most basic to the most complex, and you need to fulfill the most basic needs first, to gain access to the second level of needs, then to the third level, moving up the pyramid.

For business study, the theory would be applied to an employee's motivation. Junior staff members who earn very low wages will be motivated by receiving more money. That will meet their physiological needs (level 1). Whereas for managers, monetary rewards are less important. Job security, level of respect, and things will become more important. Sounds about right? Or I can hear you say "OK, whatever"?

Think about these "needs" in general, and have a look at the 3rd & 4th levels. So you need to fulfill the 3rd level first to gain access to the 4th. So if you lack good friendship, family, or sexual intimacy, you're not particularly interested in gaining self-esteem, respect of others or respect by others.

"Fulfil" is the keyword here, as I understand it. It's not a subjective matter, whether you appear to have a good friendship or not, but as long as you're satisfied with your social needs (love/belonging), then you're motivated by the next level, esteem issues.

Quality of the Pyramid

And as you continuously grow older and wiser, you're not only motivated by the "needs" at a higher level, but the quality of the entire pyramid should progress within you. You'll be content with more money (e.g. you used to be happy with $1,000 per month, now you need $5,000), a better understanding of family issues, self-respect, and personal growth as a whole.

Bearing that in mind, I think the pyramid can be applied to home business/online marketing in two different aspects; (1) to the entrepreneurs as a strategy, and (2) the marketing niches.

#1: Hierarchy of Needs in Home Business

If you apply this pyramid to the motivation for the business that you run from home, it will be something like this.

Level 1 - Physiological

As a complete online marketing novice, you are motivated by one thing - money. How much can I make? 5 figures a month? 6 figures? While it's good to be pumped up with a plan and great spirit, at this level you only search for what technical steps to take to achieve this.

Level 2 - Safety

You start to be motivated by sustainability. You need to keep your business going for the long term so that you'll continue to be paid. Some contingency plans ("What if something happens and I lose all my money?")

Level 3 - Love/Belonging - Social Needs

Start to build your customer relationship. You want as many customers as possible. To achieve that, you need to learn how to market your products, so that more people actually like them.

Level 4 - Esteem

You only start to grow your confidence once you've had a level of customer base. Your goal will be to understand what your customers' needs are and to provide the best responses possible.

Level 5 - Self-Actualization

The highest level will be not just to respond well to your customers but only think about your customers. How to continuously improve your products, and how to make a difference in order for your customers to appreciate your business.

#2: Maslow’s Hierarchy of Needs in Marketing Niche

Quite separately, Maslow’s Hierarchy of Needs can also be applied to the product niche.

Level 1 - Physiological

The niche includes basic essentials - it can be food, basic clothing and footwear, cleaning and any household products, baby products, computer equipment, web-hosting, and domain-hosting. These are the items everyone needs and, if they don't buy from you, they have to buy from somewhere.

Level 2 - Safety

There are many products to protect people from hazards. Home security products, internet security/antivirus software, debt consolidation and loan arrangement, and various insurances including life, travel & motoring. Health & safety clothing and equipment.

Level 3 - Love/Belonging

Online dating is a massive market. People who are content with money and home security are surely motivated by relationships. Not just love relationships but also friendship networking. Love and belonging - pets. Pet-related products and services are always largely in demand.

Level 4 - Esteem

This is an area a lot of online marketers have an eye for. Diet and beauty products, gym equipment, workout programs, and related books. Not just for physical improvement but also how to learn and enhance social engagement.

Level 5 - Self-Actualization

When looking at the top level of niches, products are to improve something that people may already have. The social engagement in level 4 for example, is looked into more in-depth level. Such as how to improve social respect through spiritual findings, through Yoga or martial arts, etc.

Improvement of your small business itself; better marketing software, better e-commerce software, how to market in a way that users are truly interested in... Have I seen it anywhere? Yes, it's the pyramid itself that I've just applied to #1. The products relate to the ways to motivate entrepreneurs, improve their skills, and grow their businesses.

I hope the above list will help you find out where you are, what you need, and what sort of niche is available if you have yet to choose. What are your thoughts? Let me know.