The Environment and Market

Summary

This script discusses the fundamental differences between needs and wants, emphasizing that needs are essential for survival while wants are desires for comfort and luxury. It also explores the market's variety of products and services, distinguishing between tangible and intangible items, and the challenges in evaluating service quality. The script highlights the importance of understanding these concepts for generating business ideas and meeting customer expectations.

Takeaways

• 🍲 Basic needs are essential for human survival and include food, clothing, shelter, education, and healthcare.
• 🛍 Wants are desires that are not essential for survival but add comfort and luxury to life.
• 🚶‍♂️ Needs are limited and must be fulfilled, whereas wants are unlimited and are optional.
• 🏡 The ancient three basic needs of man were food, clothing, and shelter.
• 📈 Over time, education and healthcare became integral to improving the quality of life.
• 💡 Needs can help generate business ideas as they are essential to every individual.
• 🛒 Products are tangible items available in the market for acquisition, use, or consumption.
• 🛠 Services are intangible and arise from the output of one or more individuals.
• 📦 Tangible goods are physical objects that can be touched, while intangible goods have value but are not physical entities.
• 📈 Digital files, such as music and software, are examples of intangible goods that can become tangible if physically produced.
• 🔄 Products can be perishable or imperishable, while services are considered perishable and not stored for later use.

Q & A

What are the learning objectives of the module discussing needs and wants?

The learning objectives are to identify the players, the different products and services available in the market, and the profile of potential customers.

What are the basic needs of a human being according to the transcript?

The basic needs of a human being include food, clothing, shelter, education, and healthcare.

How do needs differ from wants in terms of necessity?

Needs are essential for survival and are limited, while wants are desires for comfort and luxury and are unlimited.

What is the impact on a person if their needs are not satisfied?

If needs are not satisfied, it may result in illness, inability to function properly, or even death.

How are wants characterized in the context of the script?

Wants are characterized as optional, varying from person to person and time to time, and signifying wealth and an expensive way of living.

What is the primary difference between a product and a service as discussed in the transcript?

The primary difference is that a product is a tangible item, while a service is an intangible item arising from the output of one or more individuals.

Why are tangible goods easier to return than intangible goods?

Tangible goods are easier to return because they are physical objects that can be tracked and have a physical state that can be assessed for return, unlike intangible goods which can be copied or used without leaving a trace.

What is an example of an intangible good mentioned in the script?

An example of an intangible good is a music file that is downloaded from the internet.

How can intangible goods be assessed for quality before purchase?

Intangible goods can be assessed through samples, free trial periods, or by reviewing the credentials and past work of the service provider.

What is the difference between perishable and imperishable products?

Perishable products are those that spoil or become unusable over time, like fresh foods. Imperishable products do not spoil and can be stored for long periods, such as jewelry and automobile parts.

How do services differ from products in terms of perishability?

Services are considered perishable as they are consumed at the moment of production and cannot be stored for later use, unlike products which can be manufactured and stored for sale.

What are some examples of intangible services mentioned in the script?

Examples of intangible services include education, financial services, legal advice, consulting, and entertainment.

Outlines

00:00

📚 Understanding Needs and Wants

This paragraph discusses the difference between needs and wants. Needs are essential requirements for human survival, such as food, clothing, shelter, education, and healthcare. These are considered basic and have been a priority since ancient times. Wants, on the other hand, are desires that are not necessary for survival but add comfort and luxury to life. The paragraph emphasizes the importance of understanding this distinction for business ideas, as it helps in identifying potential customers and the products and services they might require.

05:00

🛍️ Distinguishing Needs and Wants

The second paragraph delves deeper into the differences between needs and wants. Needs are limited and essential for survival, while wants are unlimited and add to life's comforts. The paragraph explains that needs are constant and necessary, whereas wants can change over time and are not as crucial. It also introduces a comparison chart to highlight these differences, categorizing needs and wants based on their nature, necessity, and impact on life.

10:04

🚗 The Nature of Products and Services

This paragraph explores the concepts of tangible and intangible products and services. Products are tangible items like cars or groceries that can be touched and seen, while services are intangible and arise from individual efforts. The paragraph explains that products can be differentiated based on their tangibility, perishability, and whether they are produced or interactive. It also discusses the challenges of returning intangible goods and the ease of assessing tangible products.

15:07

🏠 Evaluating Tangible and Intangible Goods

The fourth paragraph continues the discussion on tangible and intangible goods, providing examples of each. It explains that tangible goods are physical and can be assessed for quality before purchase, while intangible goods, like digital files or services, cannot be physically touched or evaluated beforehand. The paragraph also touches on the concept of production versus interaction and how services are often intangible and perishable, unlike products that can be stored and sold later.

20:09

🚗💺 The Distinction Between Perishable and Imperishable

The final paragraph focuses on the perishability of products and services. It uses examples like food spoilage in restaurants and the obsolescence of technology to illustrate the concept of perishable goods. The paragraph also discusses imperishable products, such as jewelry and automobile parts, which do not spoil over time. It concludes by differentiating products and services based on factors like tangibility, perishability, variability, and heterogeneity, emphasizing the importance of understanding these differences for business operations.

Keywords

💡Needs

In the context of the video, 'needs' refers to the basic requirements essential for human survival, such as food, clothing, and shelter. These are considered the fundamental necessities that must be fulfilled to maintain a healthy life. The video emphasizes that needs are integral to a person's first priority and are crucial for living with dignity and pride in a community.

💡Wants

'Wants' are described in the video as desires that are not essential for survival but add comfort and luxury to life. They are considered optional and can vary from person to person and time to time. The script mentions that while human wants are unlimited, the means to satisfy them are not, and they often signify wealth and an expensive lifestyle.

💡Products

Products are tangible items that are manufactured, stored, transported, advertised, and sold in the market. The video script explains that products can be either tangible or intangible and are distinct from services. An example from the script is a car, which is a tangible product that a consumer can touch and test drive before purchasing.

💡Services

Services are intangible items that arise from the output of one or more individuals. The video script contrasts services with products, stating that while products are tangible, services are not. Services are consumed as soon as they are produced and cannot be stored for later use, such as airline flights or theater entertainment.

💡Tangibility

Tangibility refers to the physical presence or the ability to touch and feel an item. The video uses this term to differentiate between tangible goods, like a car or a baseball bat, and intangible goods, like digital files or services. Tangibility is a key factor in how products are perceived and valued in the market.

💡Perishability

Perishability in the video refers to the characteristic of products that can spoil or become unusable over time. For example, fresh foods spoil within a few days, making them perishable. The video also suggests that some services can be considered perishable, as they are consumed immediately upon production and cannot be stored.

💡Variability

Variability is mentioned in the context of services, indicating that the quality and nature of a service can vary depending on the provider and the interaction with the customer. Unlike products, which have a consistent production line, services are more susceptible to variability due to the human element involved.

💡Heterogeneity

Heterogeneity is used in the video to describe the inconsistency in quality that can exist between different instances of the same service. This term highlights that services are often unique to each interaction, making it difficult to standardize or guarantee the same experience for every customer.

💡Potential Customers

Potential customers are individuals who might be interested in purchasing products or services. The video script suggests identifying the profile of these customers as part of understanding market dynamics. This involves recognizing the needs and wants of different customer segments to tailor products and services effectively.

💡Dignity

Dignity in the video is associated with the fulfillment of basic needs, implying that meeting these requirements allows individuals to live with self-respect and pride within their community. It underscores the importance of needs in maintaining a sense of personal worth and social standing.

💡Wealth

Wealth is discussed in relation to 'wants', suggesting that desires for luxury and extravagance often symbolize wealth and an affluent lifestyle. The video implies that while needs are essential, wants are often associated with the display of economic prosperity and social status.

Highlights

Needs are essential requirements for human survival, including food, clothing, shelter, education, and healthcare.

Wants are desires for luxury and extravagance that signify wealth and an expensive lifestyle.

Needs are limited and must be fulfilled for survival, while wants are unlimited and add comfort to life.

Products are tangible items available in the market for acquisition, use, or consumption.

Services are intangible and arise from the output of individuals, often accompanied by a product.

Tangible goods are physical and can be touched, like cars or groceries.

Intangible goods have value but are not physical entities, such as digital files or services.

Tangible products are easier to return and track than intangible items.

Assessing the quality of tangible goods is straightforward as they are countable, touchable, and visible.

Services cannot be felt or tried before purchase, making their quality assessment more challenging.

Intangible goods like digital files or services are difficult to assign monetary value to and are often provided with samples or trials.

Products can be differentiated by being tangible or intangible, perishable or imperishable.

Services are intangible, perishable, and their quality is evaluated as the service is being rendered.

Products are manufactured, stored, transported, advertised, and sold, while services are intangible and their supply and demand must be balanced.

The distinction between products and services is based on factors like tangibility, perishability, variability, and heterogeneity.

Products can become outdated and need to be replaced or substituted by services or updated versions.

Streaming services like Netflix have become a substitute for physical DVDs and cable television.

Transcripts

[Musika]

L one of module 2 Talks

about needs and wants of

people the learning objectives are the

following identify the players comp

the identify the different products and

services available in the

market and finally identify the profile

of potential

customers Let us try to differentiate

needs and

wants by the ter needs we mean those

requirements which are extremely

necessary for a human being to live a

healthy life they are personal

psychological cultural social and others

that are important for an organism to

survive in Ancient times the three basic

needs of man are food clothing and

Shelter but with a passage of time

education and health care also became

integral as they improve the quality of

life they are a person's first priority

as they are the things that they keep us

healthy and safe

therefore if needs are not satisfied in

time it May result in illness inability

in functioning properly or even

death basic needs are essential to every

individual so he or she may be able to

live with dignity and pride in the

community of

people these needs can obviously help

you generate business idea

What are this

needs

first are the basic commodities for

consumption like

food cereal which includes

cals

grains fruits and vegetables and any

other staple

food the

second need is the clothing and other

personal

belongings the

third basic need is

Shelter for sanitation and health

care and the

fth is education

in economics ones are defined as

something that a person would like to

possess either immediately or at a later

time simply put ons are the desires that

cause business activities to produce

such products and services that are

demanded by the

economy they are optional for example

an individual is going to survive even

if not satisfied fur on

mayy from person to person and time to

time once are desires luxury and

extravagance that signify wealth and an

expensive way of living wants or desires

are considered

B of

life we all know that human on are

unlimited while the means to satisfy

those ones are

limited h all the on of an individual

cannot be and they must se for

alterna try to study the key differences

needs and wants

first the term needs is defined as an

individual's basic requirement That must

be fulfilled in order to

survive on are described as the goods

and services which an individual like to

have as part of his

caprices

second aniv needs limit while on unlit

the

third needs are something that you must

have in order to live on the contrary

ones are something that you wish to have

so as to add comforts in your

life the

fourth needs represents the necessities

while wants indicate

desires fth

needs are important for the human being

to survive as against this ones are not

as important as needs because a person

can live without

wants

six needs are those items that are

required for life and does not change

with time as opposed to ones are those

items that are desired by

either right now in future

therefore once my change over

time the seven difference as needs are

essential to life non fulfillment may

lead to illness or even death in

contrast ones are not essential for

living and so non does not Have a great

impact on a person's life however

disappointment may be

there so to

summarize need and wants Let us try to

study the comparison

chart the chart is divided into three

columns the first colum are the bases

for comparison the second

the needs and the third colum the ones

so in terms of meaning needs refers to

an individual's basic requirement That

must be fulfilled in order to survive

while ones are describe as the goods and

services which an individual like to

have as a part of his

caprices in terms of

nature needs are limited while are

unlimited What is it needs something you

must

have something you wish to have

represents needs

necessity while once

desire in terms of Survival needs are

essential while ones are

intial in terms of change needs may

remain constant over

time while

wants may change over

time in terms of non

fullfillment may result in onset of

disas or even

death in

disappointment so

the We will discuss

is about the

different products and services

available in the

market a product is a tangible item that

is put on the market for

acquisition attention or

consumption while a service is an

intangible item which arises from the

output of one or more

individuals Although It seems like the

main distinction between the two

concepts is founded under tangibility

that is not always the case in most

cases services are intangible but

products are not always

tangible one more thing to keep in mind

Andes in a majority ofs carry with them

an element of

service for

example when a consumer buys a car the

product Comes with a lot of other

service responsibilities

such as tun up and main

nonetheless there is a clear difference

between the two concepts and it's

imperative for one to understand their

working

definitions so products are defined and

differentiated in terms of tangible

versus

intangible production versus interaction

perishable versus imperishable

a tangible good is a physical object

such as a car or sweer that can be

touch some tangible goods have

expiration day

tangible goods are physical products

defined by the ability to be touch they

are distinct from intangible goods which

may have value but are not physical

entities goods that are tangible play a

large Part in ril though the purchasing

of intangible goods is now widely

available through the

internet they are also from

serv result serv

not prod

touch including things like printed

books CDs and dvds LS Groceries and

baseball

bats one of the easiest ways to

determine Whether a good is tangible or

not is to ask if a person could

physically Touch it or pick it up if the

answer is Yes the

is tangible

a music file and Burns them into a CD

however he or she has created a tangible

product the finish CD from initially

intangible

ones downloaded music from the internet

is an intangible good as the good is not

a physical object

one of the benefits of tangible products

is that they are often easier to return

and track than intangible items

returning a suiter to the store often

requires only that the owner has not

damaged it and has kept their tags or

receipts as proof of

purchase returning an intangible good on

the other hand can be much more

complicated if a person downlo a music

file the opportunity for return ro is

enormous as there is no way for the

merchant to track with the person has

copied or burned the file before

attempting to

return while with traditional computers

it is also usually impossible for a

merchant to remove a file from a remote

computer once it has been initially

purchased or downloaded for reason

intangible products often provide

samples or free trial periods so that

the buyer Can Be sure of what he or she

is

purchasing assessing the quality of a

tanib product is very easy since most

products are

countable touchable and visible a

consumer can assess its durability by

examining it a good case in point is

when an individual is buying a home the

buyer of course will check every and

cranny of the house including the artic

the basement the foundation its

individual room and more in contrast a

service is not something that one can

feel or try out before paying for it say

an individual needs a professional to

identif any hidden issues

before to purchase a home or a

house just how experience is the

inspector with regards to planing

roofing and other structural

matters in a nutshell the client lacks

sufficient knowledge about inspector

expertise until the tas is already in

Progress the customer can line reviews

As for the inspector credentials as well

as before and after pictures of his

previous work but there's no definite

way of evaluating the quality of a

service until it is

rendered intangible goods means

considerations which are difficult to

assign monetary value to and other value

adding to the

offerings digital files though

technically goods are examples of

intangible products downloaded video

games

applications music files or movies

cannot physically be touched though they

can be bought and sold Just As easily as

tangible items

digital files are not inherently

physical if a person buys music files

And Burns them into a CD however he or

she has created a tangible product the

finished CD from initially intangible

goods so examples of intangible goods

are

Education knowledge software business

services culture financial

services art film and music events

digital

experiences public goods information and

data advice

entertainment

communication media consulting Travel

and products when talk about

software this includes sales automation

platform software includes both

applications used by people and systems

that Automate

things while art film and music the

Digital Media that has artistic value

such as music

video for

advice we have the legal advice from the

lawyer

consulting example the services that

provide intangible work products such as

knowledge and

software business services they are the

services that produce value for a

business such as a cloud computing

platform that provides a business with

computer or computing

power events such as musical

performance entertainment such as theme

part travel experiences such as tour of

a historical

attraction in terms of culture we have

the cultural experiences such as

traditional

Festival knowledge say as electronic

document that gives advice on how to be

a good public

speaker Education such as class that

teaches computer programming

information and data incl information

design to be consum by people and data

designed to be consumed by Machine for

example a Navigation

service in terms of media the Digital

Media such as

photogs and

content the second

is production versus

interaction a potential car buyer

usually checks the car's body lines FS

the le used on the seats and takes the

car for a test drive before deciding

whether to buy the car or not since It's

a product the buyer is aware of the

specific production line the vehicle

from and there are many more like it in

fact there are other cars identical to

the one being

B But what about the service the car

buyer receives from the car

dealer the way a car sales person

explain to

them let's come to the vers

imper the best way to illustrate

perishable products is to consider a

restaurant owner if such an individual

does not understand the concept of

spoilage and waste reduction he risks

rining his business since most fres

foods spoil within a few

days another example is

technology even some intangible products

like software become obsolete some point

imper products include items like

jewelry and automobile

parts however does the distinction

between perishable and imperishable

exist in

services services can be described as

perishable but not imperishable

a perishable service simply means that

it's

short I

such a service is consumed as soon as it

is produced un products the service

cannot be stored for a later

useable services are such as airline

flights aut

repair theater entertainment and

manicures and pedicures and the services

in

salons if an individual purchases An Air

ticket for a day and then he suffers a

Cold and is not able to travel the

ticket expires the perishable attribute

of some services makes it hard to

balance supply and

demand based on history it is evident

that

producers need to adopt or replace

products Once they become

outdated consider the way websites and

ebooks have replaced the paper books of

how compact dis have replaced cassettes

and

dvds in other instances services have

also become a substitute for certain

products For instance the streaming

services offered by the

entertainment firms like Netflix are now

preferred over many to DVD and cable or

satellite television programs

so products are simply objects that are

manufactured stored transported

advertised and then sold while products

can either be tangible or

intangible services are

intangible the differences between

products and services are based on

different factors including tangibility

perishability

variability and

Heritage

heterogeneity

So are we now ready to discus the next

topic the