The Importance of Marketing

1. Unit 10 Economic Benefits of Marketing The Importance of Marketing

2. Economic Benefits of Marketing • New and improved products • Creates competition • Larger variety of products and services • Lower prices • Increase demand—lower prices • Produce products in larger quantities • Reduces unit cost • More competitors when products are popular

3. Economic Benefits of Marketing • Added value and utility • Attributes of a product or service that make it capable of satisfying consumers’ needs and wants • Five economic utilities involved with all products: • Form • Place • Time • Possession • information

4. Economic Benefits of Marketing • Form Utility • Changing raw materials or putting parts together to make them more useful • Takes things of little value themselves and puts them together to create more value • Place Utility • Having a product where customers can buy it • Study consumer shopping habits to determine the most convenient and efficient locations to sell products

5. Economic Benefits of Marketing • Time Utility • Having a product available at a certain time of the year or a convenient time of day • 24-hour shopping, extended hours • Possession Utility • Exchange of product for money • Cash, debit/credit cards, checks, layaway, payment plans

6. Economic Benefits of Marketing • Information Utility • Communication with consumers • Salespeople provide information by explaining the features and benefits of products • Labels and packaging inform consumers about qualities and uses of a product • Advertising • Informs consumers about products, tells where to buy products, and how much they cost (sometimes) • Owner’s Manual • Explain how to use products • Websites • Detailed information about companies and products