2. Benefits of Marketing Adds value Lowers prices Creates new & Improved Products

3. Added Value Makes product more useful Added value =UTILITY

4. Five Economic Utilities Form Utility Place Utility Time Utility Possession Utility Information Utility

5. Form Utility Changes raw material or putting parts together to make them more useful Example :

6. Place Utility Convenient location Catalog shopping Retail stores

7. Time Utility Have a product available at a certain time of year or a convenient time of day Example: New York February Toys

8. Possession Utility Exchange of a product for some monetary value Cash Credit Card Check

9. Information Utility Communication with the Customer

10. Lower Prices Marketing activities increase demand High demand =large quantities Large quantity production = lower unit cost

11. Fixed Cost Cost of daily operation = $20,000 Quantity Fixed Cost Produced Per Unit 10,000 $2.00 200,000.10

12. Competition More competition = lower prices =higher quality Example: VCR’s original price$600.00 VCR’s price now$140.00

13. New and Improved Products Marketing Competition Lower Prices Better Products Computers smaller, faster, powerful

14. Why Study Marketing? Career Personal Knowledge Understand Business Interpersonal Skills Communication Skills (huh?) BLS estimates marketing employment to increase 20.6% between 1992 - 2005