1. Chapter 1, Section 1.2 Marketing Principles
Economic Utilities
Chapter 1, Section 1.2
Marketing Principles

2. New & Improved Products
Marketing generates competition, which in turn fosters new & improved products
Example:
Computers have gotten smaller, lighter, more powerful, & less expensive

3. Lower Prices Demand increases
Manufactures can produce in larger quantities
Which lowers price
Fixed cost will not increase
Demand increase competition increase which lowers price

4. What is Utility?
The attributes of a product or service that make it capable of satisfying consumers’ wants and needs.
Utility adds VALUE to a product
The functions of marketing add value.

5. 5 Economic Utilities Form Utility Place Utility Time Utility
Possession Utility
Information Utility

6. Form Utility
Changing raw materials or putting parts together to make them more useful
Not directly related to marketing
Example:
Chain
Wheels
Handlebars
Gears
What do these parts make??

7. Place Utility Having a product where customers can buy it.
Most convenient
Most efficient
Catalogs, retails stores, internet

8. Time Utility
Having a product available at a certain time of year or a convenient time of day.
Give me some examples!

9. Possession Utility The exchange of a product for some monetary value.
Cash
Credit/Debit Cards
Checks
Layaway
Customer Credit (Net 30)

10. Information Utility Communication with the consumer Salespeople
Displays
Packaging and Labeling
Advertising

11. Can You……..
Name the 5 economic utilities and how they add value to products??