Determine forms of economic utility created by marketing

Determine forms of economic utility created by marketing activities Why does Michael Phelps have a USA flag sticker on his headphones? OA 4

Marketing Concept • A business should strive to satisfy customers’ needs and wants while generating a profit. – Customer focused – Repeat customers = profit OA 4

7 Functions of Marketing • Distribution • Financing • Product/Service Management • Promotion • Marketing Information Management • Pricing • Selling (Personal Selling) OA 4

UTILITY Utility refers to the VALUE or USEFULNESS of a product or service

Types of Utility n FORM n Changing raw materials or putting parts together to make them more useful. Trees …. . Pencils, paper n Flour, sugar, butter … Bread n OA 4

n. Place Utility n Having a product WHERE customers can buy it n Stores, Catalogs, Internet OA 4

n Time Utility n Having a product available at a certain time of year or a convenient time of day. Shopping / Banking hours n Toys at Christmas n School supplies in August n OA 4

n Possession Utility n The exchange of a product for some monetary value n Cash, Debit, Credit, Check, Financing plans etc. § Adds value to the product. Without options, some customers could not buy. OA 4

n Information Utility n Communication with the consumer n Encourages sales through special offers, signs, ads, labels, manuals etc. OA 4

Utility Worksheet OA 4

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….

l CUSTOMERS: l l They BUY the products CONSUMERS: l They actually USE the product l SONY…. . Sony’s customers are the retail stores that sell Sony products. The consumers buy Sony products from the retailer. OA 4

What is a market? l All potential customers who have the ability and willingness to buy a product l 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. OA 4

Customer profiles…. l Information about where and how a person lives and what he/she wants and needs. l Age, Income level, Occupation l Ethnic groups – culture, history Hispanic’s consider music a major part of their culture l 70% are Roman Catholic l OA 4

Marketing mix “ 4 p’s of marketing” l Product l Price l Place l Promotion OA 4

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