Chapter 1 Marketing is All Around Us

From the time that you woke up this morning how many products have you used? Activity #1

4 P’s of Marketing Product Place Promotion Price

What is Marketing? Marketing is the process of developing, promoting, and distributing products in order to satisfy customers’ needs and wants. The Four P’s of Marketing (product, place, price, promotion)

Products GoodsServices

Product Planning Information Mgmt. PurchasingPricing Promotion Selling Risk Mgmt. Distribution Financing 9 Functions of Marketing

Benefits of Marketing Making a product more useful is called Utility. There are five economic utilities involved with all products: – Form Utility – Place Utility – Time Utility – Possession Utility – Information Utility

Economic Utilities Form Utility: changing raw materials to make them more useful. Place Utility : offering convenient locations to purchase products.

Economic Utilities Time Utility: having a product available at a certain time of year or convenient time of the day. Possession Utility: allowing customers to purchase goods easier such as using cash, credit, checks etc…

Economic Utilities Information Utility : involves communicating with the consumer. –Salespeople –Advertising (magazines, newspapers, etc….) –Packaging & Labeling

Other Benefits of Marketing Lower Prices – since marketing encourages customers to purchase products it increases demand. When demand is high, manufacturers can make products in larger quantities, which reduces the cost of each product. New & Improved Products – as businesses continue to look for opportunities to better satisfy needs and wants, the result is a higher variety of goods and services.

Activity #2 Critical Thinking Can you think of some products whose prices have dropped significantly over the years as a result of popularity and increasing competition in the marketplace?