understading needs utility
DESCRIPTION
TRANSCRIPT
![Page 1: Understading Needs Utility](https://reader035.vdocuments.net/reader035/viewer/2022081412/545c9864af7959b90e8b4826/html5/thumbnails/1.jpg)
The Larger Marketing Context of Advertising
WTUC
Image source: http://www.kinesisinc.com/images/web_images/marketing.jpg
![Page 2: Understading Needs Utility](https://reader035.vdocuments.net/reader035/viewer/2022081412/545c9864af7959b90e8b4826/html5/thumbnails/2.jpg)
Advertisers’ perennial challenge
• How to present their products, services, and ideas effectively through the media to buyers– Must comprehend the important relationship
between the product and the marketplace
– That RELATIONSHIP is MARKETING
![Page 3: Understading Needs Utility](https://reader035.vdocuments.net/reader035/viewer/2022081412/545c9864af7959b90e8b4826/html5/thumbnails/3.jpg)
• Marketers must know what products or services to produce
• Where to distribute them?
http://www.ducttapemarketing.com/blog/wp-content/uploads/2008/06/istock_000005682006xsmall.jpg
![Page 4: Understading Needs Utility](https://reader035.vdocuments.net/reader035/viewer/2022081412/545c9864af7959b90e8b4826/html5/thumbnails/4.jpg)
4 Ps of Marketing
Image Source: http://www.netmba.com/images/marketing/mix/mix.gif
![Page 5: Understading Needs Utility](https://reader035.vdocuments.net/reader035/viewer/2022081412/545c9864af7959b90e8b4826/html5/thumbnails/5.jpg)
Company Prosperity
• Ability to attract and keep customers who are willing to pay for the firm’s goods and services
• Able to locate prospective customers
• Create products and services that satisfy their desires
• Communicate that information that resonates with them
http://www.fibre2fashion.com/daewooInternational/images/vision.jpg
![Page 6: Understading Needs Utility](https://reader035.vdocuments.net/reader035/viewer/2022081412/545c9864af7959b90e8b4826/html5/thumbnails/6.jpg)
Marketing
• Business process that management uses to plan and execute conception, pricing, distribution, or even ideas.
http://ocw.mit.edu/NR/rdonlyres/Global/1/1F127262-3695-46DF-9564-298BA53E4411/0/chp_4pofmarketing.jpg
![Page 7: Understading Needs Utility](https://reader035.vdocuments.net/reader035/viewer/2022081412/545c9864af7959b90e8b4826/html5/thumbnails/7.jpg)
Ultimate Purpose of Marketing
• Create exchanges that satisfy the perceived needs and want of individuals and organizations
![Page 8: Understading Needs Utility](https://reader035.vdocuments.net/reader035/viewer/2022081412/545c9864af7959b90e8b4826/html5/thumbnails/8.jpg)
Customer Needs and Product Utility
• Utility is the product’s ability to satisfy both functional needs and symbolic (or psychological) wants.
• Advertising communicates this utility.– How well a product works (function)– Shows glamour, sex appeal, status
(symbolism)
![Page 9: Understading Needs Utility](https://reader035.vdocuments.net/reader035/viewer/2022081412/545c9864af7959b90e8b4826/html5/thumbnails/9.jpg)
http://www.finntrack.co.uk/finntrack.com/images/images1/research_defined.gif
![Page 10: Understading Needs Utility](https://reader035.vdocuments.net/reader035/viewer/2022081412/545c9864af7959b90e8b4826/html5/thumbnails/10.jpg)
Ford Focus• Low-priced
sporty car to woo Gen Xers and Echo Boomers (the children of baby boomers)
http://www.adsneeze.com/media/2008/03/ford-focus-ads2.jpg
![Page 11: Understading Needs Utility](https://reader035.vdocuments.net/reader035/viewer/2022081412/545c9864af7959b90e8b4826/html5/thumbnails/11.jpg)
Exchanges: The Purpose of Marketing and Advertising
• A transaction between a person or organization
• Trade something of value with someone else
• Usually for PROFIT
![Page 12: Understading Needs Utility](https://reader035.vdocuments.net/reader035/viewer/2022081412/545c9864af7959b90e8b4826/html5/thumbnails/12.jpg)
How?
• Developing goods and services we might want
• Pricing them affordably
• Distributing them to convenient locations
• Informing us about them through advertising and other communication tools
![Page 13: Understading Needs Utility](https://reader035.vdocuments.net/reader035/viewer/2022081412/545c9864af7959b90e8b4826/html5/thumbnails/13.jpg)
5 + 1 types of functional utility
• Form
• Task
• Possession
• Time
• Place
• Psychic
![Page 14: Understading Needs Utility](https://reader035.vdocuments.net/reader035/viewer/2022081412/545c9864af7959b90e8b4826/html5/thumbnails/14.jpg)
[1] Form utility
• Produce tangible good i.e. bicycle
http://www.infovisual.info/05/033_en.html
![Page 15: Understading Needs Utility](https://reader035.vdocuments.net/reader035/viewer/2022081412/545c9864af7959b90e8b4826/html5/thumbnails/15.jpg)
[2] Task Utility
• Performing task for others i.e. wanting to buy it, require repair, to satisfy need
• Marketing decisions should guide the production side of business, too
![Page 16: Understading Needs Utility](https://reader035.vdocuments.net/reader035/viewer/2022081412/545c9864af7959b90e8b4826/html5/thumbnails/16.jpg)
[3] Possession Utility
• How consumers can take possession of the product– Distribution– Pricing strategies– Shelf availability– Purchase agreements– delivery
![Page 17: Understading Needs Utility](https://reader035.vdocuments.net/reader035/viewer/2022081412/545c9864af7959b90e8b4826/html5/thumbnails/17.jpg)
• An antique bicycles on display, but not for sale, lacks possession utility because the customer cannot purchase it.
![Page 18: Understading Needs Utility](https://reader035.vdocuments.net/reader035/viewer/2022081412/545c9864af7959b90e8b4826/html5/thumbnails/18.jpg)
[4] Time Utility
• Providing the customer the product when he/she wants it– Ample supply
![Page 19: Understading Needs Utility](https://reader035.vdocuments.net/reader035/viewer/2022081412/545c9864af7959b90e8b4826/html5/thumbnails/19.jpg)
[5] Place Utility
• Having the product available where the customer can get it– Customers won’t travel far out of their way– Use of branches– 24-hour convenience markets
![Page 20: Understading Needs Utility](https://reader035.vdocuments.net/reader035/viewer/2022081412/545c9864af7959b90e8b4826/html5/thumbnails/20.jpg)
+1 Psychic Utility
• Product offers symbolic or psychological need satisfaction such as status or sex appeal
• Achieved through product promotion (advertising)
• Fulfill self-esteem and self-actualization needs
![Page 21: Understading Needs Utility](https://reader035.vdocuments.net/reader035/viewer/2022081412/545c9864af7959b90e8b4826/html5/thumbnails/21.jpg)
![Page 22: Understading Needs Utility](https://reader035.vdocuments.net/reader035/viewer/2022081412/545c9864af7959b90e8b4826/html5/thumbnails/22.jpg)
![Page 23: Understading Needs Utility](https://reader035.vdocuments.net/reader035/viewer/2022081412/545c9864af7959b90e8b4826/html5/thumbnails/23.jpg)
In-class Workshop 3-1Wiki time
• Find a print ad and identify the utility that is communicated in the ad.
• Does it address a function need or symbolic want?
• Describe that need or want
• [psychic utility and/or the functional utilities of form, task, possession, time, and place]