Unit 1: Business Fundamentals

1.A Economic Basics

Wants vs Needs

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DEFINITIONS on today’s menu…

• Business• Needs• Wants• Consumer• Communit

y

• Fad(s)• Trend(s)• Maslow’s

Hierarchy of Needs

btw Where’s Waldo? Your attention could pay

off!

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• 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?

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NEEDS

NEEDSNEEDS – are things you must have in order to stay alive

– Ex: air, food, medical care, shelter

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WANTS

WantsWants – are the extras; you don’t need them to survive but they make life more fun

– Examples: cell phone, concert tickets, new hockey equipment

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A Need or a Want?Product N W Why?

Cell phone

Event Tickets

Blood pressure Medication

Plumbing tools for a plumber

Vehicle to attend school

Bag of Doritos

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THINK ABOUT …

Insert adWhat do you need

for “back to school?”

What do you want for “back to

school?”

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CONSUMER

CONSUMERCONSUMER – is a person that buys and uses goods/services provided by a company

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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

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This slide doesn’t

really have a purpose other then

to entertain me.

Look at him run…

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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 …

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MASLOW

Who is MaslowWho is Maslow- he was an American Psychologist from the 1950’s

- he developed a theory on human’s hierarchy of needs

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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.

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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

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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)

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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)

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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

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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 -

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Maslow’s Hierarcy … impact on business1.Physiological needs - wife/child-abuse help-lines,

social security benefits, roadside assistance 2.Safety needs - home security products,

insurance3.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

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• What do you get when you cross an elephant with a rhinoceros?

• Elephino!

Joke Break!

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TRENDS vs FADS

- - a trend trend is a general direction in society that may last for a long

- - a fad fad is a craze that people take up quickly and drop just as quickly

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TRENDS- Trends have a major

impact on consumer buying habits and on business.

Some TREND Examples:Some TREND Examples:-- more working-- more workingwomen/dual income women/dual income households (1970s)households (1970s)-- Smartphones-- Smartphones-- Credit Card use-- Credit Card use-- ‘self-service’-- ‘self-service’

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FADS

- Fads can also have a major impact on consumer buying habits and on business

Examples of FADSExamples of FADShttp://www.crazyfads.com/10s.htm

If a business is on the ‘front end’ of the fad, they can capitalize … However, if late, it can be very costly!