benefits of marketing adds value lowers prices creates new & improved products
TRANSCRIPT
Benefits of Marketing
Adds valueLowers pricesCreates new & Improved Products
Added Value
Makes product more
useful
Added value =UTILITY
Five Economic Utilities
Form UtilityPlace UtilityTime UtilityPossession UtilityInformation Utility
Form UtilityChanges raw material or putting parts together to make them more usefulExample:
Place Utility
Convenient location
Catalog shopping
Retail stores
Time UtilityHave a product available at a certain time of year or a convenient time of dayExample:
New York February
Toys
Possession Utility
Exchange of a product for some monetary value
CashCredit Card Check
Information Utility
Communication with the Customer
Lower Prices
Marketing activities increase demand
High demand = large quantities
Large quantity production = lower unit cost
Fixed Cost
Cost of daily operation = $20,000
Quantity Fixed Cost
Produced Per Unit
10,000 $2.00
200,000 .10
Competition
More competition = lower prices
= higher quality
Example:VCR’s original price $600.00
VCR’s price now $140.00
New and Improved ProductsMarketing
Competition
Lower Prices
Better Products
Computers smaller, faster, powerful
Why Study Marketing?
Career
Personal Knowledge
Understand Business
Interpersonal Skills
Communication Skills (huh?)
BLS estimates marketing employment to increase 20.6% between 1992 - 2005