BENEFITS OF MARKETING

1. Adds value 2. Lowers prices 3. Creates new & Improved Products

ADDS VALUE  Can you imagine???????  If ………  All smart phones were priced right, promoted continuously, sold at the appropriate times, etc.  BUT……  Were not distributed to any store!!!!!!!  We wouldn’t be able to purchase them!  Therefore, Marketing adds value by using all nine functions, which in turn is a benefit to us

LOWERS PRICES  Lowes vs. Home Depot  Two competing business build within one mile of each other  What do the businesses do? BENEFIT TO US – YAY!!!!!!!

CREATES NEW & IMPROVED PRODUCTS  Two competing businesses have lowered their prices as much as possible  What’s next?  What can they do? THIS???? OR THIS????

ADDED VALUE  Makes product more useful  Added value =UTILITY

FIVE ECONOMIC UTILITIES  Form Utility  Place Utility  Time Utility  Possession Utility  Information Utility

FORM UTILITY  Changes raw material or putting parts together to make them more useful  Example :

PLACE UTILITY  Convenient location  Catalog shopping  Retail stores

TIME UTILITY  Have a product available at a certain time of year or a convenient time of day  Example: New York February Toys

POSSESSION UTILITY  Exchange of a product for some monetary value  Cash  Credit Card  Check

INFORMATION UTILITY  Communication with the customer

LOWER PRICES Marketing activities increase demand High demand =large quantities Large quantity production = lower unit cost

FIXED COST Cost of daily operation = $20,000 Quantity Fixed Cost Produced Per Unit 10,000 $ ,000.10

COMPETITION More competition = lower prices =higher quality Example: VCR’s original price$ VCR’s price now$140.00

NEW AND IMPROVED PRODUCTS Marketing Competition Lower Prices Better Products Computers smaller, faster, powerful

WHY STUDY MARKETING? Career Personal Knowledge Understand Business Interpersonal Skills Communication Skills (huh?) BLS estimates marketing employment to increase 20.6% between