1. 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?

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

3. 7 Functions of Marketing
Distribution
Financing (Market Planning)
Product/Service Management
Promotion
Marketing Information Management
Pricing
Selling (Personal Selling)

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

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

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

7. 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

8. 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.

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

10. Utility Worksheet

11. 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….

12. 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.

13. 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.

14. 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

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

16. Utility Worksheet