the importance of marketing chapter 1, section 1.2
TRANSCRIPT
The Importance of Marketing
Chapter 1, Section 1.2
Key Term
• Utility
Think Critically…
• Take 2-3 minutes to brainstorm why prices drop when products become more popular…
• We will discuss shortly!
Why Marketing is Important…
1. Micro-level: It can ________affect your life
2. Macro-level: It provides the means for __________________to take place in the marketplace, thus helping the economy as a whole
Economic Benefits of Marketing• New and _______________Products:
• In a competitive marketplace, businesses try to create _________or _______________products at ________________prices than their competition.
• Example: Pepsi vs. Coke
Economic Benefits of Marketing, cont.
• Lower Prices:• Marketing activities ____________demand and
this helps to lower prices• When demand is___________, manufacturers
can produce products in _________quantities• Unit costs are___________
Economic Benefits of Marketing, cont.
• Added _____________and Utility:• _______________________forces companies to be
efficient and responsive to consumers
• Competition also forces companies to TRY TO ________________________ to a consumer’s shopping experience
• Example: U.S. Bank offers online banking, a 24- hour customer service hotline, and free check cards
Economic Benefits of Marketing, cont.
Utility• Definition: Added ____________in economic terms
• Utilities are the _____________of a product or service that make it capable of satisfying a consumers’ wants and needs
• Five economic ____________involved with all products • Form
• Place
• Time
• Possession
• Information
Form Utility
Example: • _________• spool of thread• three yards of cloth --------------------------- Some Value
Example:• creating a jacket
from these materials
-------------------------- MORE Value!
•Changing raw materials or putting parts together to make them more__________. (i.e., making or producing things)
Place Utility
• Involves having a product _________customers can buy it.• Businesses study consumer shopping ______________to
determine the most _____________and efficient _____________________to buy products.
• Examples:• ________• Retail Stores (Brick & Mortar)• Internet (Click & Order)
Case Study Example:
BlockbusterBlockbuster
They have retail stores and now Blockbuster
online!!
Time Utility• Having a product available at a certain
__________of year or a _________time of day
Examples:• Gold’s Gym staying open 24 hours
• Starbucks offering the pumpkin spice latte from September thru February
Possession Utility• The __________of a product for money
• There are many variations today: • Cash
• Personal checks
• _______________
• Layaway and Installment Plans (delayed possession for gradual payment)
• Each option adds__________, as it gives the customer greater flexibility (i.e., greater opportunity to BUY)
Information Utility
• Involves _________with the consumer
Examples:• Salespeople provide ________ by
offering features and benefits of products
• Advertising communicates ________about specials, how much a product___________, and sometimes where to buy it
• _________and labeling inform consumers about qualities and uses of a product
• Websites provide detailed information about their companies and their products
Review Questions…
• Which utility is added by drive-through windows at Starbucks?
• How does marketing help to lower prices?