Unit 10 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

 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

 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

 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

 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