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Chapter 1, Section 1.2 Marketing Principles

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1 Chapter 1, Section 1.2 Marketing Principles
Economic Utilities Chapter 1, Section 1.2 Marketing Principles

2 New & Improved Products
Marketing generates competition, which in turn fosters new & improved products Example: Computers have gotten smaller, lighter, more powerful, & less expensive

3 Lower Prices Demand increases
Manufactures can produce in larger quantities Which lowers price Fixed cost will not increase Demand increase competition increase which lowers price

4 What is Utility? The attributes of a product or service that make it capable of satisfying consumers’ wants and needs. Utility adds VALUE to a product The functions of marketing add value.

5 5 Economic Utilities Form Utility Place Utility Time Utility
Possession Utility Information Utility

6 Form Utility Changing raw materials or putting parts together to make them more useful Not directly related to marketing Example: Chain Wheels Handlebars Gears What do these parts make??

7 Place Utility Having a product where customers can buy it.
Most convenient Most efficient Catalogs, retails stores, internet

8 Time Utility Having a product available at a certain time of year or a convenient time of day. Give me some examples!

9 Possession Utility The exchange of a product for some monetary value.
Cash Credit/Debit Cards Checks Layaway Customer Credit (Net 30)

10 Information Utility Communication with the consumer Salespeople
Displays Packaging and Labeling Advertising

11 Can You…….. Name the 5 economic utilities and how they add value to products??

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