benefits of marketing adds value lowers prices creates new & improved products

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Benefits of Marketing Adds value Lowers prices Creates new & Improved Products

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Page 1: Benefits of Marketing Adds value Lowers prices Creates new & Improved Products

Benefits of Marketing

Adds valueLowers pricesCreates new & Improved Products

Page 2: Benefits of Marketing Adds value Lowers prices Creates new & Improved Products

Added Value

Makes product more

useful

Added value =UTILITY

Page 3: Benefits of Marketing Adds value Lowers prices Creates new & Improved Products

Five Economic Utilities

Form UtilityPlace UtilityTime UtilityPossession UtilityInformation Utility

Page 4: Benefits of Marketing Adds value Lowers prices Creates new & Improved Products

Form UtilityChanges raw material or putting parts together to make them more usefulExample:

Page 5: Benefits of Marketing Adds value Lowers prices Creates new & Improved Products

Place Utility

Convenient location

Catalog shopping

Retail stores

Page 6: Benefits of Marketing Adds value Lowers prices Creates new & Improved Products

Time UtilityHave a product available at a certain time of year or a convenient time of dayExample:

New York February

Toys

Page 7: Benefits of Marketing Adds value Lowers prices Creates new & Improved Products

Possession Utility

Exchange of a product for some monetary value

CashCredit Card Check

Page 8: Benefits of Marketing Adds value Lowers prices Creates new & Improved Products

Information Utility

Communication with the Customer

Page 9: Benefits of Marketing Adds value Lowers prices Creates new & Improved Products

Lower Prices

Marketing activities increase demand

High demand = large quantities

Large quantity production = lower unit cost

Page 10: Benefits of Marketing Adds value Lowers prices Creates new & Improved Products

Fixed Cost

Cost of daily operation = $20,000

Quantity Fixed Cost

Produced Per Unit

10,000 $2.00

200,000 .10

Page 11: Benefits of Marketing Adds value Lowers prices Creates new & Improved Products

Competition

More competition = lower prices

= higher quality

Example:VCR’s original price $600.00

VCR’s price now $140.00

Page 12: Benefits of Marketing Adds value Lowers prices Creates new & Improved Products

New and Improved ProductsMarketing

Competition

Lower Prices

Better Products

Computers smaller, faster, powerful

Page 13: Benefits of Marketing Adds value Lowers prices Creates new & Improved Products

Why Study Marketing?

Career

Personal Knowledge

Understand Business

Interpersonal Skills

Communication Skills (huh?)

BLS estimates marketing employment to increase 20.6% between 1992 - 2005