1. The Importance of Marketing
Chapter 1, Section 1.2

2. Key Term
Utility

3. Think Critically…
Take 2-3 minutes to brainstorm why prices drop when products become more popular…
We will discuss shortly!

4. Why Marketing is Important…
Micro-level: It can ________affect your life
Macro-level: It provides the means for __________________to take place in the marketplace, thus helping the economy as a whole

5. Economic Benefits of Marketing
New and _______________Products:
In a competitive marketplace, businesses try to create _________or _______________products at ________________prices than their competition.
Example: Pepsi vs. Coke
Diet Pepsi Max has about one-third more caffeine than Diet Mountain Dew
Diet Coke Plus is supposed to be “good” for you, supplementing the drink w/ vitamins

6. Economic Benefits of Marketing, cont.
Lower Prices:
Marketing activities ____________demand and this helps to lower prices
When demand is___________, manufacturers can produce products in _________quantities
Unit costs are___________

7. Economic Benefits of Marketing, cont.
Added _____________and Utility:
_______________________forces companies to be efficient and responsive to consumers
Competition also forces companies to TRY TO ________________________ to a consumer’s shopping experience
Example: U.S. Bank offers online banking, a 24- hour customer service hotline, and free check cards

8. Economic Benefits of Marketing, cont.
Utility
Definition: Added ____________in economic terms
Utilities are the _____________of a product or service that make it capable of satisfying a consumers’ wants and needs
Five economic ____________involved with all products
Form
Place
Time
Possession
Information

9. Form Utility
Changing raw materials or putting parts together to make them more__________. (i.e., making or producing things)
Example:
_________
spool of thread
three yards of cloth
Some Value
Example:
creating a jacket from these materials
MORE Value!

10. Place Utility Involves having a product _________customers can buy it.
Businesses study consumer shopping ______________to determine the most _____________and efficient _____________________to buy products.
Examples:
________
Retail Stores (Brick & Mortar)
Internet (Click & Order)
Case Study Example: Blockbuster
They have retail stores and now Blockbuster online!!

11. Time Utility
Having a product available at a certain __________of year or a _________time of day
Examples:
Gold’s Gym staying open 24 hours
Starbucks offering the pumpkin spice latte from September thru February

12. Possession Utility The __________of a product for money
There are many variations today:
Cash
Personal checks
_______________
Layaway and Installment Plans (delayed possession for gradual payment)
Each option adds__________, as it gives the customer greater flexibility (i.e., greater opportunity to BUY)

13. Information Utility Involves _________with the consumer Examples:
Salespeople provide ________ by offering features and benefits of products
Advertising communicates ________about specials, how much a product___________, and sometimes where to buy it
_________and labeling inform consumers about qualities and uses of a product
Websites provide detailed information about their companies and their products

14. Review Questions…
Which utility is added by drive-through windows at Starbucks?
How does marketing help to lower prices?