Unit 1: Business Fundamentals 1.A Economic Basics Wants vs Needs

BBI2O Unit 1 Subunit 1.A2 DEFINITIONS on today’s menu… Business Needs Wants Consumer Community Fad(s) Trend(s) Maslow’s Hierarchy of Needs btw Where’s Waldo? Your attention could pay off!

BBI2O Unit 1 Subunit 1.A3 A business is an organization that produces and/or sells goods and/or services to satisfy the needs and wants of consumers What is a Business?

BBI2O Unit 1 Subunit 1.A4 NEEDS NEEDS NEEDS – are things you must have in order to stay alive –Ex: air, food, medical care, shelter

BBI2O Unit 1 Subunit 1.A5 WANTS Wants Wants – are the extras; you don’t need them to survive but they make life more fun –Examples: cell phone, concert tickets, new hockey equipment

BBI2O Unit 1 Subunit 1.A6 A Need or a Want? ProductNWWhy? Cell phone Event Tickets Blood pressure Medication Plumbing tools for a plumber Vehicle to attend school Bag of Doritos

BBI2O Unit 1 Subunit 1.A7 THINK ABOUT … Insert ad What do you need for “back to school?” What do you want for “back to school?”

BBI2O Unit 1 Subunit 1.A8 CONSUMER CONSUMER CONSUMER – is a person that buys and uses goods/services provided by a company

BBI2O Unit 1 Subunit 1.A9 COMMUNITY -A group of people with a common interest -like individuals, communities have needs and wants -a community need may be garbage collection -a community want may be a new arena

BBI2O Unit 1 Subunit 1.A10 This slide doesn’t really have a purpose other then to entertain me. Look at him run…

BBI2O Unit 1 Subunit 1.A11 Ummm Mr. Ruston, who decides what is a need and what is a want?? Well I’m glad you asked…. A dude named Abraham Maslow has an interesting theory …

BBI2O Unit 1 Subunit 1.A12 MASLOW Who is Maslow - he was an American Psychologist from the 1950’s - he developed a theory on human’s hierarchy of needs

BBI2O Unit 1 Subunit 1.A13 THE PHYSIOLOGICAL NEEDS (need for food,water, shelter and clothing) The most basic need -we cannot move up to fulfill our other needs until this one is fulfilled.

BBI2O Unit 1 Subunit 1.A14 THE PHYSIOLOGICAL NEEDS (need for food,water, shelter and clothing) SECURITY NEED (need for personal security in a family and society that protects against violence and hunger) Once you move up a level, needs below your current level are not a priority

BBI2O Unit 1 Subunit 1.A15 THE PHYSIOLOGICAL NEEDS (need for food,water, shelter and clothing) SECURITY NEED (need for personal security in a family and society that protects against violence and hunger) LOVE AND BELONGING NEED (need for belonging, to receive and give love, appreciation and friendship)

BBI2O Unit 1 Subunit 1.A16 ESTEEM NEED (need to be a unique individual, reputation, self respect, responsibility) THE PHYSIOLOGICAL NEEDS (need for food,water, shelter and clothing) SECURITY NEED (need for personal security in a family and society that protects against violence and hunger) LOVE AND BELONGING NEED (need for belonging, to receive and give love, appreciation and friendship)

BBI2O Unit 1 Subunit 1.A17 ESTEEM NEED (need to be a unique individual, reputation, self respect, responsibility) THE PHYSIOLOGICAL NEEDS (need for food,water, shelter and clothing) SECURITY NEED (need for personal security in a family and society that protects against violence and hunger) LOVE AND BELONGING NEED (need for belonging, to receive and give love, appreciation and friendship) SELF ACTUALIZATION NEED (personal growth, fulfillment) Very few people will reach this level About 2% of the population

BBI2O Unit 1 Subunit 1.A18 THINK ABOUT … What does this mean for business? Maslow’s Hierarchy … impact on business Physiological needs - Safety needs - Love & Belonging needs - Esteem needs - Self-Actualization needs -

BBI2O Unit 1 Subunit 1.A19 Maslow’s Hierarcy … impact on business 1.Physiological needs - wife/child-abuse help-lines, social security benefits, roadside assistance 2.Safety needs - home security products, insurance 3.Love & Belonging needs - dating and match- making services, chat-lines, clubs and membership societies 4.Esteem needs - cosmetics, fast cars, home improvements, furniture, fashion, 5.Self-Actualization needs – University … Rosetta Stone? (since very few people reach this level, it’s less lucrative for businesses, therefore fewer products are developed to satisfy this need) What does this mean for business

BBI2O Unit 1 Subunit 1.A20 What do you get when you cross an elephant with a rhinoceros? Elephino! Joke Break!

BBI2O Unit 1 Subunit 1.A21 TRENDS vs FADS - trend - a trend is a general direction in society that may last for a long - fad - a fad is a craze that people take up quickly and drop just as quickly

BBI2O Unit 1 Subunit 1.A22 TRENDS - Trends have a major impact on consumer buying habits and on business. Some TREND Examples: -- more working women/dual income households (1970s) -- Smartphones -- Credit Card use -- ‘self-service’

BBI2O Unit 1 Subunit 1.A23 FADS - Fads can also have a major impact on consumer buying habits and on business Examples of FADS If a business is on the ‘front end’ of the fad, they can capitalize … However, if late, it can be very costly!