Presentation on theme: "1 Business Management UNIT 1(1) Goods and Services, Needs and Wants."— Presentation transcript:
1 Business Management UNIT 1(1) Goods and Services, Needs and Wants
2 What are goods and services? Businesses make goods Some examples of goods made Computers Cars Washing Machines Mobile phones Sweets Clothes Seafood DVD players I-pods Businesses provide services Some examples of services provided Banking Insurance Education Hairdressing Public transport Entertainment – cinema
3 Goods and services can be described as Tangible goods – can be seen, touched and handled – eg washing machine, car Intangible goods – cannot be touched or handled – eg public transport, hair dressing
4 Goods and services can be described as Durable goods and services – long lasting – eg clothes, education Non-durable goods and services – used up quickly – eg sweets, cinema
5 WHAT ARE CAPITAL AND CONSUMER GOODS? Consumer goods Goods sold to people (ie consumers – us) for their own use Capital goods Goods used by a business to make consumer goods and other capital goods
6 Difference between Needs and Wants The following are examples of goods we buy As consumers, we buy the goods offered by a range of organisations/ businesses.
7 WHAT IS A NEED? A NEED is something an individual must have in order to survive – these are the basic needs or wants Food Shelter Clothing Drink
8 WHAT IS A WANT? It is important to distinguish between what we need and what we want Ill tell you what I want, What I really, really want, So tell me what you want, What you really, really want....
9 WHAT IS A WANT? A WANT is something an individual would like to have, or wishes for – they are not essential for survival When a want is fulfilled it gives the consumer Satisfaction. Examples are: I-pod Sports Car Video Camera Expensive jewellery
10 HOW DOES A BUSINESS KNOW WHAT WE NEED OR WANT? A business will use Market research to identify what consumers need and want. This information helps the business in decision making eg whether a new product/service should be developed