Needs VS. Wants

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Unit 1

• Chapter 1
• Lesson 1

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Needs VS. Wants

• Needs would be defined as goods or services that
  are required in order to live.
• Ex. food, water, air, clothing, shelter, health
  care.

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Needs VS. Wants

• Wants are goods or services that are not
  necessary but that we desire or wish for.
• For example, one needs clothes, but one may not
  need name brand clothes.
• One does not need toys, entertainment, gems,
  etcagain these are wants!

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Differing needs and wants

• Age
• Culture
• Gender
• Community
• Era/Time
• Income
• Values
• Personality
• Etc., Etc..

• Just like each one of us is different from each
  otherso too are our needs and wants!!

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Q. Why is this important?

• A.
• Your needs and wants
• provide businesses with opportunities to make a
  profit
• by providing goods and services
• that fulfill your NEEDS WANTS

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What about you?

• You are the CONSUMER
• A consumer is a person (business or organization)
  who buys and uses goods and services
• which essentially fulfill our needs and wants!

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TRENDS FADS

• A trend is the direction in which society in
  heading
• The way things are going to be
• For a LONGGGGG time!
• Ex. Computerized, faster, smaller, high gas
  prices.
• Trends will influences what people need and
  wantwhat they will buy.

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TRENDS illustrated

• How could higher gas prices affect consumer
  purchasing and habits?
• Buy smaller cars
• Car pool
• Walk or bike
• Alternative energy cars

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NAME some other trends!!

• Higher education
• Environmental awareness
• Leisure time
• Personal Appearance and wellness
• 2 income families
• More.

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TRENDS FADS

• A FAD is short term phenomenon in which something
  quickly catches on and dies out almost as
  quickly.
• Most fads deal with personal expression, toys,
  music, fashion
• Ex name some!!!
• FADS too will influences what people need and
  wantwhat they will buy.

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FADS illustrated

• Name the latest Video Game System
• Now name the systems that are no longer
  popularthat are now out-dated or no longer
  IN.
• Q. How does FADS affect business and consumers?

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Maslows Theory

• humans are motivated to satisfy their needs
  according to a hierarchy (a ranking order).
• He used his hierarchy to illustrate how people
  are motivated to satisfy their most basic
  physical and safety needs first.
• Once those needs are filled, Maslow said, people
  will be motivated by their higher needs for love,
  esteem, and, finally, self-actualization.

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Maslow and Business

• What does Maslows Theory have to do with
  business or consumers?
• Ex. Advertising and how businesses try to
  APPEAL to certain types of needs.
• Ex. Consumer purchases of lower level, higher
  priority needs FIRST.

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What is Business?

• Any place that sells goods or services
• that satisfy needs and wants
• in order to earn a profit.

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Business is EVERYWHERE!!!
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Business is a major and influential part of
Canadian society. Everyone is involved in the
business world to some extent.
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Interdependence
Needs Wants
Producers
Consumers
Goods Services
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Some definitions

• Producers businesses that create finished goods
  or provide services.
• Goods are any physical item that you purchase,
  possess and use. Examples please
• Services are any helpful action performed in
  exchange for pay. Examples please

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The Interdependence

• Explain the interdependent relationship between
  consumers and producers.
• Consumers have needs and wants. They NEED
  producers (businesses) to fulfill these needs and
  wants.
• Hence business create goods and provide services.
• At the same time, producers NEED consumers to buy
  their goods and services.

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The Interdependence

• Can you name other types of interdependence in
  the world of business?
• Ex. Business Business, Business - Workers

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Producersa closer look.

• 2 groups of producers
• Manufacturer
• Supplier
• Manufacturer is the actual company that makes the
  finished good. Ex. NIKE makes or manufactures
  NIKE footwear and clothing.
• Supplier is the business that makes the finished
  goods available to the consumer. Ex. Walmart,
  Canadian Tire and Athletes World.
• NIKE does not sell directly to the end consumer.
  They sell to other businesses.

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Goods Consumersa closer look.

• 2 types
• Consumer goods the End Consumer
• Business-to-business goods Businessto-business
  consumers

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Consumer goods the End Consumer

• Consumer Goods are items purchased by consumers
  and used for personal use
• The person who purchases a product for their own
  use is called the end consumer or ultimate
  consumer.
• Ex. A toaster to use at home.

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Business-to-business goods Businessto-business
consumers

• Businesstobusiness goods are items purchased by
  businesses to use in the business or in other
  products. Also called producer goods.
• Businesses that buy goods to use in their own
  products or in operating their business is
  referred to as a business-to-business consumers
  or industrial consumers.
• Ex. A restaurant purchases a toaster to make
  toast for breakfast for its customers.

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The Market

• Market is any place where buyers (consumers) and
  sellers (producers) meet to make an exchange and
  do business.
• Consumer Markets
• Business-to-business Markets
• Examples of each???

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Demand

• Demand represents the consumer side of the
  market.
• Consumer demand for a product is directly related
  to price.
• Generally speaking, consumers are willing to buy
  more of a good or service when the price is low.