Transcript Economic Utilities - Duluth High School

Economic Utilities
Chapter 1, Section 1.2
Marketing Principles
New & Improved Products
Marketing generates competition, which in
turn fosters new & improved products
Example:
Computers have gotten smaller, lighter, more
powerful, & less expensive
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
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 Economic Utilities
Form Utility
Place Utility
Time Utility
Possession Utility
Information Utility
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??
Place Utility
Having a product where customers can
buy it.
Most convenient
Most efficient
Catalogs, retails stores, internet
Time Utility
Having a product available at a certain
time of year or a convenient time of day.
Give me some examples!
Possession Utility
The exchange of a product for some
monetary value.
Cash
Credit/Debit Cards
Checks
Layaway
Customer Credit (Net 30)
Information Utility
Communication with the consumer
Salespeople
Displays
Packaging and Labeling
Advertising
Can You……..
Name the 5 economic utilities and how they
add value to products??