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Sports Marketing TICKET: ______________________________________
THE MENU: • Read and discuss the opening
TICKET
• Review marketing foundations
• Discuss economic utilities
• Economic benefits of marketing
• Economic Utilities Project
OUTCOMES:
By the end of class, you will be able to:
List and describe each of the economic utilities
Discuss the economic benefits of marketing
Choose a product and present its economic utilities
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UNIT 3 Economic UtilitiesUNIT 3 Economic Utilities
Economic Utilities value added by producers and marketers to materials before they reach the consumer
Form utility Place utility Time utility Possession utility Information utility
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Economic UtilitiesEconomic Utilities
Key TermsKey Terms
utility
form utility
place utility
time utility
possession utility
information utility
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Economic UtilitiesEconomic Utilities
Changing raw materials or putting parts together to make them more useful.
Form Utility
Example: The parts of a lounge chair— the wood frame, the fabric, the glue and nails, and the reclining mechanism—are less useful by themselves. Putting them together adds form utility.
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Economic UtilitiesEconomic Utilities
Having a product where customers can buy it.
Example: Selling directly to the customer
through catalogs.
Place Utility
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Economic UtilitiesEconomic Utilities
Having a product available at a timeconvenient for customers.
Example?
Time Utility
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Economic UtilitiesEconomic Utilities
Exchange of a product for some monetary value.
Example: Taking credit cards and checks rather than just cash enables customers to buy products.
Possession Utility
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Economic UtilitiesEconomic Utilities
Providing information so the customer is comfortable buying.
Information Utility
Example: Salespeople explain features of products.
Example: Packaging explains qualities and uses.
Example: Advertising informs consumers about products.
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Economic UtilitiesEconomic Utilities
When demand is high, manufacturers can make products in larger quantities, which reduces the unit cost of each product. Example: When fixed costs are $20,000:
Quantity Produced Fixed Cost Per Unit
10,000 $2.00
200,000 10¢
Lower Prices
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Economic UtilitiesEconomic Utilities
As businesses continue to look for opportunities to better satisfy customers' wants and needs, the result is a larger variety of goods and services.
New and Improved Products
Example: Personal computers have become smaller, more powerful, and less expensive through competition between makers.
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Economic UtilitiesEconomic Utilities
Bridges the gap between you and the maker or seller of an item.
Makes buying easy for customers.
Creates new and improved products at lower prices.
Economic Benefits of Marketing
