Unit 1: Business Fundamentals 1.A Economic Basics

1. Unit 1: Business Fundamentals1.A Economic Basics Wants vs Needs

2. 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.A

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

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

5. 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.A

6. A Need or a Want? BBI2O Unit 1 Subunit 1.A

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

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

9. 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.A

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

11. 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.A

12. 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.A

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

14. 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 THE PHYSIOLOGICAL NEEDS (need for food,water, shelter and clothing) BBI2O Unit 1 Subunit 1.A

15. 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) THE PHYSIOLOGICAL NEEDS (need for food,water, shelter and clothing) BBI2O Unit 1 Subunit 1.A

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

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

18. 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.A

19. What does this mean for business Maslow’s Hierarcy … impact on business • Physiological needs - wife/child-abuse help-lines, social security benefits, roadside assistance • Safety needs - home security products, insurance • Love & Belonging needs - dating and match-making services, chat-lines, clubs and membership societies • Esteem needs - cosmetics, fast cars, home improvements, furniture, fashion, • 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) BBI2O Unit 1 Subunit 1.A

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

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

22. TRENDS - Trends have a major impact on consumer buying habits and on business. • Example of a Trend • the move to having women • enter the workforce / • two family incomes • Result of the trend • Increased need for childcare • extended store hours ( banks, • grocery stores) BBI2O Unit 1 Subunit 1.A

23. FADS - Fads can also have a major impact on consumer buying habits and on business • Example of a FAD • Beenie Baby craze of the • late 90’s • Result of the fad • stores and even McDonald’s tried to cash in • however once the fad passed prices dropped and demand was non existent, and stores were left with tons of inventory BBI2O Unit 1 Subunit 1.A

24. WHAT DOES THIS MEAN FOR BUSINESSES? • Businesses usually prefer to invest in trends rather than fads… as they are safer and more predictable • However if a business can be one of the first to catch onto a fad and the first to offer such a product they can make HUGE money BBI2O Unit 1 Subunit 1.A

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