1 / 12

Economic Goods, Services & Utility

Economic Goods, Services & Utility. Marketing Principles Chapter 1. General Purposes of Marketing. People have economic needs & wants Producers create goods & services to satisfy consumer’s needs & wants

starr
Download Presentation

Economic Goods, Services & Utility

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  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 candy @ 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.

More Related