Board Activity

• Make a list of at least five products that students and/or faculty in your school would want to buy at your school site and use daily or weekly.

Review

• What are the nine functions of marketing?

• What are the characteristics of the nine marketing?

• What is the definition of marketing, products, goods, services, and exchange?

Objectives

• Define economic utility• Name the five economic utilities and

distinguish those related to marketing• List the benefits of marketing• Discuss the reasons for studying

marketing• Describe the trend in future employment

opportunities for those trained in marketing.

Economic Benefits of Marketing

• Added Value – Make it more useful. – That added value in economic terms is called

utility.

• Lower Prices

• New and Improved Products

Types of Utility

• Form Utility

• Place Utility

• Time Utility

• Possession Utility

• Information Utility

Form Utility

• Form utility involves changing raw materials or putting parts together to make them more useful.

Place Utility

• Place utility involves having a product where customers can buy it.

Time Utility

• Time utility is having a product available at a certain time of year or a convenient time of day.

Possession Utility

• The exchange-of a product for some monetary value- is possession utility.

Information Utility

• Information utility involves communication with the consumer.

Ball Point Pen Example

• Turn to page 8 in your text book.

Group Work on Example:

• Choose a product that we will use at school (can’t use a ball point pen)

• Answer the following questions– What raw materials went into the marking the

product? (form utility)– Where would you place this product so your

customers would see it (place utility)– When would be the best time of day to sell this

product? (Time Utility)– How would students and/or faculty pay for the

product? (Possession Utility)– How would you get information about this product to

your potential customers? (Information utility)

Lower Prices

• Marketing activities also help increase demand for them.

• When demand is high, manufacturers can make products in larger quantities, which reduces the unit cost of each product.

• Fix cost are cost that don’t change whether you make 1 product or 10,000 products– Rent

• Spreadsheet page 5.

New and Improved Products

• Are a result of increased competition generated by marketing.

• Businesses look for opportunities to satisfy customers, which result in a larger variety of products. – For example, personal computers have gotten

smaller, more powerful, and less expensive.

Case Study

• Break into your pods read the case study and answer the three question.

• You have 10 minutes to complete this tasks

• You will be expected to share your groups answers.

Checking for Understanding

• What is meant by economic concept of utility?

• How can marketing help lower prices?

• Explain marketing’s role in developing new and improved products

• Why is the study of marketing helpful in any career?

Assignments

• Finish Workbook

• Critical Thinking 1, 3