Chapter 1Chapter 1Needs, Wants, and Needs, Wants, and

BusinessBusiness

Key Terms – Chapter 1Key Terms – Chapter 1

NeedsNeeds WantsWants ConsumerConsumer TrendsTrends FadsFads BusinessBusiness GoodGood ServicesServices InterdependenceInterdependence ProducerProducer ManufacturerManufacturer Business EnvironmentBusiness Environment Business-to-BusinessBusiness-to-Business

MarketMarket DemandDemand ProductionProduction Factors of productionFactors of production LandLand CapitalCapital LabourLabour InformationInformation EntrepreneurshipEntrepreneurship MarketingMarketing Human ResourcesHuman Resources ManagementManagement FinanceFinance

Examples of Needs & Examples of Needs & WantsWants

NeedsNeeds

Shelter

Food

Medical

Wants

Cell Phone

Brand Name Clothing

Fast Food Restauran

ts

What are other

examples of Needs & Wants?

Factors which influence Factors which influence Consumers Wants & Consumers Wants &

NeedsNeedsStage of LifeStage of LifeInterestsInterestsTastesTastesPrioritiesPrioritiesAbilitiesAbilities

Family Family ResponsibilitResponsibilitiesies

TrendsTrendsFadsFads

Abraham Maslow and Abraham Maslow and Personal MotivationPersonal Motivation

•Humans are motivated to satisfy their needs according to a hierarchy•People are motivated to satisfy their most basic physical and safety needs first•People will then be motivated by their higher needs for love, esteem and self-actualization•Self-Actualization motivation includes the need to know and explore, find beauty, reach your own potential and to help others develop theirsBusinesses use this theory to appeal to the basic needs of

consumers through advertising and marketing. Ie: children are often used

Competition for Competition for CustomersCustomers

Businesses often advertise their

products as filling your social, esteem or self-actualization needs

Page 10… #’s 1, 3 & 5

Assignment – Chapter Assignment – Chapter 11

You may work in groups of 2 students

Question #4, page 27

What is BusinessWhat is Business

The Business World revolves around two interest groups…1.Producer – makes goods or provides services2.Consumer – purchases goods or services to satisfy needs and wants

Most businesses are both producers and consumers. Ie: Levis has to purchase denim from a supplier to make their jeans.

What would be examples of some businesses who are not consumers, only producers?

Functions of BusinessFunctions of Business

1. ProductionFactors of Production…a.Land d. Informationb.Capital e. Entrepreneurshipc.Labour

2. MarketingMarketing includes much more than advertising…a.Research (planning)b.Pricingc.Promotingd.Distribution

3. Finance All businesses must keep accurate financial records in order to know whether they are making a profit.

Functions of Business Functions of Business cont…cont…

3. Human Resources

4. Management

Many large businesses have a human resources department

Managers plan, organize and control all business activities

Page 22, #’s 1, 2, 4 & 5

MP3.com and NapsterMP3.com and Napster

Read the article on pages 23 – 24

Answer the questions that follow (page 24)

Test TimeTest Time

Chapter Review

Points to RememberKnowledge/Understanding – questions 1 & 2 (page 25)Thinking/Inquiry – question # 2 (page 26)Communication – question # 1 (page 26)