1. Economic Goods, Services & Utility
Marketing Principles
Chapter 1

2. General Purposes of Marketing
People have economic needs & wants
Producers create goods & services to satisfy consumer’s needs & wants
Marketing adds usefulness to goods & services by bringing sellers(producers) & buyers(consumers) together so exchange can occur.

3. Economic Goods & Services
Things produced that satisfy consumer’s needs & wants
Goods: Tangible (can touch)
Services: Intangible (can not touch)

4. Before Exchange Can Occur Goods & Services Need Utility
Utility(usefulness): The attributes of a product or service that make it capable of satisfying consumers’ wants & needs.

5. Utility is added through Marketing & the 7 Marketing Functions
Distribution
Financing
Marketing-Information-Management
Pricing
Product/Service Management
Promotion
Selling

6. Goods & Services Must Have Utility(usefulness) – 5 Ways Utility is Added to Goods & Services
Form
Place
Time
Possession
Information

7. Economic Utilities 1. Form Utility
Changing raw materials or putting parts together to make them useful to consumers.
Example: A tree is not useful to consumers until it is cut down and produced into a good like a chair or desk. Putting raw materials together so it satisfies consumers’ needs adds form utility.

8. Economic Utilities 2. Place Utility
Adding usefulness by having a product where customers can buy it.
Example: Selling winter coats in Alaska. Winter coats would not have utility in Florida.
Example: Selling products at stores that are located in cities where populations are large.

9. Economic Utilities 3. Time Utility
Adding usefulness by having a product available when it is convenient & needed by customers.
Example: Retailers offer large supplies of backpacks in the late summer, near the beginning of the school year.
Example: Selling Valentines

10. Economic Utilities 4. Possession Utility
Adding usefulness by helping consumers take ownership of products.
Example: Taking credit cards and checks rather than just cash enables customers to buy products.
Offering 0% free financing.
Offering free delivery with purchase of a product.

11. Economic Utilities 5. Information Utility
Adding usefulness to goods & services by providing information so the customer is comfortable buying.
Example: Salespeople explain features of products.
Example: Packaging explains qualities and uses.
Example: Advertising informs consumers about products.

12. Goods & Services Must have Utility
All types of utility are added throughout the marketing process so products have value to consumers.