Why does Michael Phelps have a USA flag sticker on his headphones? Eagle Challenge Learning Target Determine forms of economic utility created by marketing activities Standard OA4 Why does Michael Phelps have a USA flag sticker on his headphones?

Marketing Concept A business should strive to satisfy customers’ needs and wants while generating a profit. Customer focused Repeat customers = profit

7 Functions of Marketing Distribution Financing (Market Planning) Product/Service Management Promotion Marketing Information Management Pricing Selling (Personal Selling)

Utility refers to the VALUE or USEFULNESS of a product or service

Types of Utility FORM Changing raw materials or putting parts together to make them more useful. Trees ….. Pencils, paper Flour, sugar, butter … Bread

Place Utility Having a product WHERE customers can buy it Stores, Catalogs, Internet

Time Utility Having a product available at a certain time of year or a convenient time of day. Shopping / Banking hours Toys at Christmas School supplies in August

Possession Utility The exchange of a product for some monetary value Cash, Debit, Credit, Check, Financing plans etc. Adds value to the product. Without options, some customers could not buy.

Information Utility Communication with the consumer Encourages sales through special offers, signs, ads, labels, manuals etc.

Utility Worksheet

Fundamentals of Marketing Businesses must satisfy customers’ needs and wants in order to make a profit ….right products at the right price at the right time and in the right place….

CUSTOMERS: CONSUMERS: They BUY the products They actually USE the product SONY…..Sony’s customers are the retail stores that sell Sony products. The consumers buy Sony products from the retailer.

What is a market? All potential customers who have the ability and willingness to buy a product Video Game Market would be all people who purchase video games Target market… A very specific group of people that a business wants to reach.

Customer profiles…. Information about where and how a person lives and what he/she wants and needs. Age, Income level, Occupation Ethnic groups – culture, history Hispanic’s consider music a major part of their culture 70% are Roman Catholic

Marketing mix “4 p’s of marketing” Product Price Place Promotion

Utility Worksheet