benefits of marketing. 1. adds value 2. lowers prices 3. creates new & improved products
TRANSCRIPT
BENEFITS OF MARKETING
1. Adds value
2. Lowers prices
3. Creates new & Improved Products
ADDS VALUE Can you imagine???????
If ……… All smart phones were priced right, promoted
continuously, sold at the appropriate times, etc. BUT……
Were not distributed to any store!!!!!!!
We wouldn’t be able to purchase them!
Therefore, Marketing adds value by using all nine functions, which in turn is a benefit to
us
LOWERS PRICES
Lowes vs. Home Depot Two competing business build within one
mile of each other What do the businesses do?
BENEFIT TO US – YAY!!!!!!!
CREATES NEW & IMPROVED PRODUCTS
Two competing businesses have lowered their prices as much as possible What’s next?
What can they do?
THIS????
OR
THIS????
ADDED VALUE
Makes product more useful
Added value = UTILITY
FIVE ECONOMIC UTILITIES
Form UtilityPlace UtilityTime UtilityPossession Utility Information Utility
FORM UTILITY
Changes raw material or putting parts together to make them more useful
Example:
PLACE UTILITY
Convenient location
Catalog shopping
Retail stores
TIME UTILITY
Have a product available at a certain time of year or a convenient time of day
Example:New York February Toys
POSSESSION UTILITY
Exchange of a product for some monetary value
Cash Credit Card Check
INFORMATION UTILITY
Communication with the customer