understading needs utility

The Larger Marketing Context of Advertising

WTUC

Image source: http://www.kinesisinc.com/images/web_images/marketing.jpg

Advertisers’ perennial challenge

• How to present their products, services, and ideas effectively through the media to buyers– Must comprehend the important relationship

between the product and the marketplace

– That RELATIONSHIP is MARKETING

• Marketers must know what products or services to produce

• Where to distribute them?

http://www.ducttapemarketing.com/blog/wp-content/uploads/2008/06/istock_000005682006xsmall.jpg

4 Ps of Marketing

Image Source: http://www.netmba.com/images/marketing/mix/mix.gif

Company Prosperity

• Ability to attract and keep customers who are willing to pay for the firm’s goods and services

• Able to locate prospective customers

• Create products and services that satisfy their desires

• Communicate that information that resonates with them

http://www.fibre2fashion.com/daewooInternational/images/vision.jpg

Marketing

• Business process that management uses to plan and execute conception, pricing, distribution, or even ideas.

http://ocw.mit.edu/NR/rdonlyres/Global/1/1F127262-3695-46DF-9564-298BA53E4411/0/chp_4pofmarketing.jpg

Ultimate Purpose of Marketing

• Create exchanges that satisfy the perceived needs and want of individuals and organizations

Customer Needs and Product Utility

• Utility is the product’s ability to satisfy both functional needs and symbolic (or psychological) wants.

• Advertising communicates this utility.– How well a product works (function)– Shows glamour, sex appeal, status

(symbolism)

http://www.finntrack.co.uk/finntrack.com/images/images1/research_defined.gif

Ford Focus• Low-priced

sporty car to woo Gen Xers and Echo Boomers (the children of baby boomers)

http://www.adsneeze.com/media/2008/03/ford-focus-ads2.jpg

Exchanges: The Purpose of Marketing and Advertising

• A transaction between a person or organization

• Trade something of value with someone else

• Usually for PROFIT

How?

• Developing goods and services we might want

• Pricing them affordably

• Distributing them to convenient locations

• Informing us about them through advertising and other communication tools

5 + 1 types of functional utility

• Form

• Task

• Possession

• Time

• Place

• Psychic

[1] Form utility

• Produce tangible good i.e. bicycle

http://www.infovisual.info/05/033_en.html

[2] Task Utility

• Performing task for others i.e. wanting to buy it, require repair, to satisfy need

• Marketing decisions should guide the production side of business, too

[3] Possession Utility

• How consumers can take possession of the product– Distribution– Pricing strategies– Shelf availability– Purchase agreements– delivery

• An antique bicycles on display, but not for sale, lacks possession utility because the customer cannot purchase it.

[4] Time Utility

• Providing the customer the product when he/she wants it– Ample supply

[5] Place Utility

• Having the product available where the customer can get it– Customers won’t travel far out of their way– Use of branches– 24-hour convenience markets

+1 Psychic Utility

• Product offers symbolic or psychological need satisfaction such as status or sex appeal

• Achieved through product promotion (advertising)

• Fulfill self-esteem and self-actualization needs

In-class Workshop 3-1Wiki time

• Find a print ad and identify the utility that is communicated in the ad.

• Does it address a function need or symbolic want?

• Describe that need or want

• [psychic utility and/or the functional utilities of form, task, possession, time, and place]