objectives: 1.explain the concept of utility. 2.cite examples of types of utilities. warm up:...
TRANSCRIPT
DAILY INFORMATION 4/24Objectives:
1. Explain the concept of utility.
2. Cite examples of types of utilities.
Warm Up:
Complete the handout
Agenda:
1. Warm Up2. Product design
level activity3. Brand activity4. Utilities P.P.5. Adding value
activity6. Assist.
Marketing Manager activity
WHAT YOU WILL LEARN The meaning of economic utility The five economic utilities and how to
distinguish the four that are related to marketing
WHY ITS IMPORTANT See how the functions of
marketing add value to products.
See how marketing activities promote competition by leading to lower prices and new and improved products.
DEFINITION OF UTILITY The attributes of a product or
service that make it capable of satisfying consumers’ wants and needs
FIVE ECONOMIC UTILITIES
Economic Benefits of Marketing
Form Utility
Place Utility
Time Utility
PossessionUtility
Information
Utility
Changing raw materials into usable goods or putting parts together to make them more usefulHaving a product where customers can buy itHaving a product or service available at a certain time of year or a convenient time of day
The exchange of a product for money
Communication with consumer
LOWER PRICES Marketing activities add value to
products and increase demand. When demand is high, manufacturers
can make products in larger quantities, which reduces the unit cost of each product. This is because the of fixed costs.
Example: the cost of rent on a building is the same whether the company produces 10 units or 10,000 units.
LOWER PRICE CALCULATIONFixed cost for manufacturing widgets are
$25,000. Determine the fixed cost per unit when the quantity produced is:
a) 5,000b) 75,000
NEW AND IMPROVED PRODUCTS
New and improved products are another result of increased competition generated by marketing.
As businesses continue to look for opportunities to better satisfy customers’ wants and needs, the result is a larger variety of goods and services.
NEW PRODUCTS Can anyone name a new product that is
currently being advertised? What is new and different about this
product? Where did you get your information? Did
it comes from personal knowledge of the product or an advertisement.
How did you hear about the product?
WRAP-UP QUESTION The functions of marketing add value to a product by making it more useful. This added value is also called…