When answering this question, the candidate should first define market needs as essential requirements for a product or service to solve a problem or fulfill a necessity. They should then explain market wants as preferences or desires that enhance the product or service but are not essential. The candidate should discuss the importance of conducting thorough market research to understand both needs and wants. They can highlight the significance of prioritizing needs over wants to ensure the product or service addresses core customer requirements. Additionally, the candidate should mention the role of customer feedback and data analysis in distinguishing between needs and wants. They can also mention the impact of market trends and competition on identifying needs and wants. Finally, the candidate should emphasize the need for continuous evaluation and adaptation based on evolving market needs and wants.