How Maslow’s Pyramid can be applied to business

Maslow’s Pyramid: how to help the consumer close his needs

Maslow’s Pyramid was developed by the American psychologist Abraham Maslow, it reflects all human needs. The latter are arranged in the form of a hierarchy – from simple to complex. Even though Maslow’s theory lends itself to criticism as outdated, it is successfully used for business purposes. Based on the pyramid, it is possible to build an effective motivation system for employees and develop a strategy for company development.

According to Maslow’s theory, human needs are divided into 7 levels:

1. The basic level includes physiological needs, such as sleep, food, and reproductive instincts.
2. The second level includes the need for security of life and comfort.
3. The third level reflects social interactions. These include the need for friendship, love, and communication between people in the team, and society.
4. The fourth level includes the desire of a person to be recognized by other people and to be respected. Realization of such needs is expressed through the achievement of a certain social status, getting approval, and recognition of achievements.
5. The fifth level includes the need to acquire new knowledge, in creative endeavors.
6. The sixth level includes aesthetic needs, expressed in the ability to enjoy art, perceive the beautiful, and desire to make one’s life better, and more harmonious.
7. The seventh level is self-actualization. And, according to Maslow, only 2% of people can reach this stage. In this case, we are talking about a person’s desire to find himself, the purpose of life, and to engage in activities that will be meaningful not only for him but also for society as a whole.

The psychologist’s concept is also applicable to business development. On this basis, marketers build advertising strategies and create a system of incentives for employees. By understanding what level of satisfaction a specialist is at, it is possible to improve his condition, thereby revealing his ambitions and improving the productivity of his work. For example, to meet the need for safety, companies implement health insurance for staff, to close physiological needs they increase wages, or provide discounts in stores.

Marketers use Maslow’s Pyramid to determine their target audience – which category of consumers will purchase their product. The concept contributes to a better understanding of the goals and needs of buyers to select an effective tool to influence them. Knowing the needs of the target audience, it is possible to design the right branding. For example, first describe the pain points, which are inherent in this category of consumers, and then – give a solution to their problems in the form of a product or service from the company.

Maslow’s Pyramid can be an excellent additional tool for conducting business. And it can be used both to improve internal processes and to increase sales and attract customers. However, this does not mean that this approach is guaranteed to work in all cases.