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
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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