1. Chapter 1.2

2.  Increased production capacity  Increased buying power of consumers  Need for coordinating production and consumption  ¼ to 1/3 of all workers are in marketing jobs

3.  Majority of businesses in the United States are marketing type businesses  50 to 60 cent out of every sales dollar goes to cover the costs of marketing

4.  Increased personal contact with businesses  Less variety in products  Fewer product improvements  Fewer products developed  Increased stock shortages or overages

5.  Raises the standard of living  Adds utility to goods and services  Makes buying convenient  Maintains reasonable prices

6.  Improves the quality of life  Provides a variety of goods and services  Increases production

7.  New and Improved Products  Lower Prices  Added Value and Utility

8.  1) New and Improved Products  Generates competition  Creates a larger variety of goods and services  2) Lower Prices  Increases demand which helps lower prices  Demand is high producers can make more products at a lower fixed cost

9.  3) Added Value and Utility  Value in economic terms is called Utility  Utilities are attributes of a product or service that make it capable of satisfying customers’ wants and needs

10.  1) Form Utility (not directly related to marketing – production)  Involves changing raw materials or putting parts together to make them more useful  Making or producing things  Creating new products  Marketing Research  Product Design

11.  2) Place Utility – having a product where customers can buy it (Distribution Function)  Store Location  Catalog  Internet

12.  Time Utility – having product available at a certain time of year or convenient time of day (Distribution Function)  Extended shopping hours for Christmas  Open 24-hours a day  Drive-through window at fast-food restaurant

13.  4) Possession Utility – involved every time legal ownership of a product changes hands  Increases as purchase options increase (Pricing Function)  Accepting personal checks, credit or debit cards  Installment payments or layaways  Offering a discount for paying bill early

14.  5) Information Utility – communication with the customer (Promotion Function)  Packaging and labeling  Sales Representative explains features and benefits of product  Advertising  Owner’s manual

15.  Adding bleach to a liquid clothes detergent  Accepting credit cards and debit card at a store  Offering overnight delivery

16.  A company website offers to sell products directly to the customers  Old tires are ground up and made into benches  A company website has a link that explains how to return empty laser ink cartridges

17.  A gas station opens beside an interstate highway.  The above gas station is open 24-hours a day.  A sweater has a tag attached which explain how to clean and store the garment.

18.  Adding bleach to a liquid clothes detergent  Form  Accepting credit cards and debit card at a store  Possession  Offering overnight delivery  Time

19.  A company website offers to sell products directly to the customers  Place  Old tires are ground up and made into benches  Form  A company website has a link that explains how to return empty laser ink cartridges  Information

20.  A gas station opens beside an interstate highway.  Place  The above gas station is open 24-hours a day.  Time  A sweater has a tag attached which explain how to clean and store the garment.  Information