1. ECONOMIC BENEFITS OF MARKETING

2. 1. New and Improved Products
Marketing generates competition
Businesses look for ways to satisfy customers’ wants and needs to keep them interested
Example: Cell phones have become “Smart Phones”

3. 2. Lower Prices Marketing increases demand which helps to lower prices
When demand is high, manufacturers can produce products in larger quantities
$300,00 in Fixed Costs (rent, utilities, etc.)
$300,000 ÷ 1,500 units = $200 / Unit
$300,000 ÷ 15,000 units = $20 / Unit

4. 3. Economic Utility
The FUNCTIONS of marketing that ADD VALUE in economic terms
Added Value is referred to as UTILITY
Form
Place
Time
Possession
Information

5. FORM
Changing raw materials into usable goods or putting parts together to make them more useful
Taking things of little value by themselves and putting them together to create MORE VALUE
Cars…. Transform into media centers with navigation/sound systems
Phones…communication device turned SUPER COMPUTER

6. PLACE
Having a product in a convenient place where customers can buy it
Businesses study consumer shopping habits to determine the most convenient and efficient locations to sell products
Catalogs
The internet
Retailers
At home parties (Scentsy, Jewelry, MaryKay, Pampered Chef, etc.)

7. TIME
Having a product or service available at a certain time of year or a convenient time of day
TIME Utility helps to increase the value of the product
Extended shopping hours for the holidays
24/7 Gas Stations, Walgreens, Etc.

8. POSSESSION The exchange of a product for Money
Possession Utility increases as purchase options increase
Alternatives to cash
Layaway Plans
Gradual Payments
PayPal

9. INFORMATION Communication with the consumer
Salespeople provide info by explaining features & benefits
Displays
Packaging & Labeling
Advertising informs
How to use the Product/Owners Manuals