Chapter 1 Section 1.1THE BIG IDEA…Businesses make money by offeringgoods and services to satisfy the wantsand needs of consumers and otherbusinesses. In this way, wants and needsdrive the U.S. Economy.
Chapter 1 Section 1.1 VOCABULARYGoodsPhysical products.ServicesTasks business preform for other people.
Chapter 1 Section 1.1 VOCABULARYNeeds and Wants…determine what products andservices businesses provide.
Chapter 1 Section 1.1 VOCABULARY Public vs. Private Private Want Public Want Usually satisfied by Usually local, state, you as the and federal consumer or governments business. satisfy public wants.
Chapter 1 Section 1.1 VOCABULARY Public vs. Private Private Want Public Want • New kitchen table • Highways • New shoes • Public library • New computer • Parks system • Hospital
Chapter 1 Section 1.1 VOCABULARYResourcesItems that people can use to make or obtain whatthey need or want.
Chapter 1 Section 1.1 VOCABULARYResourcesNo one has enough resources to satisfy all theirneeds and wants.Make the most of your resources by making smartand careful decisions about what you buy.
Chapter 1 Section 1.2THE BIG IDEA…Business seek profit by providing goods andservices in exchange for money. Companiesthrive on competition, the contest betweenbusinesses to win customers. Competitionand profit motivate business to continuallystrive to find new ways to satisfy customers.
Chapter 1 Section 1.2 VOCABULARYBusinessAny commercial activity that seeks profit byproviding goods and services in exchange formoney.ProfitThe money left over after a business has paid thecost of providing its goods and services.
Chapter 1 Section 1.2 The motive of a business? TO MAKE A PROFIT! It’s all about the money.• Without a profit, a company cannot survive.• The wealth created by businesses benefits the entire community because businesses pay taxes and provide jobs.
Chapter 1 Section 1.2 VOCABULARYCompetitionThe contest between businesses to wincustomers.Market ResearchThe act of gathering and analyzing informationabout the wants, needs, and preferences ofconsumers in a certain market.
Chapter 1 Section 1.2Competition happens when…businesses continually try to improve theirproducts and services and do better than oneanother.
Chapter 1 Section 1.2How do businesses compete? Offer Offer Offer QUALITY OUTSTANDING COMPETITIVE Products Service Prices
Chapter 1 Section 1.2 Business ActivitiesThe success of a Identify opportunities for productsbusiness depends and or/ services. Evaluating the demand for productson how well key and/or services.activities are Managing the production of goodscoordinated, and/or services. Marketing the goods and/or services.managed, and Keeping records to satisfyperformed. government requirements and improve processes.
Chapter 1 Section 1.2 Some business activities… Should be supported by MARKET RESEARCH.
Chapter 1 Section 1.2 VOCABULARYConsumerA person who uses goods or services.
Chapter 1 Section 1.2 VOCABULARYTARGET MARKETA group of people identified as those most likelyto become customers.Task: Make a list of 5 shoe stores. List the targetmarket next to each shoe store.
Chapter 1 Section 1.2 VOCABULARYTask: Make a list of 5 shoe stores. List the targetmarket next to each shoe store. Shoe Store Target Market Journey’s Dick Sporting Goods Payless Dillards Famous Footwear