S & E Economics
Profit Makers
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What is the main goal of marketing?
What is the main goal of a business?
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Profit:
 The amount of money remaining from revenues
after all expenses are paid
Revenues:
 The money a business receives from the sale of
goods and services
Expenses:
 The money a business pays out from the
operation of the business (cost of
product/service, basic operations, marketing,
salaries, buildings, etc.)
Profit Motive

Making decisions to use resources in ways
that result in the greatest profit.
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Example: NFL teams have total revenue in excess
of $5.5 billion. The teams operate under an
agreement that total revenue will be shared
among the 32 member teams. Teams are privately
owned; however, they share this revenue. Players
receive about 60% of the total football revenue.
 About $150 million per season is transferred from
the top 15 high-revenue to the low-revenue
teams.
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What is left?
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Page 33 in your text, please. 
Economics

The study of how goods and services are
produced, distributed, and consumed.
Macroeconomics
 The study of the economics of the entire
society
 Microeconomics
 The study of the relationships between
individual consumers and producers.
 **S & E marketers are focused on
microeconomics and their relationships with
customers.
Examples of Microeconomic and Macroeconomic
current events?
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Economic Utility

The amount of satisfaction a person
receives from the consumption of a
particular product or service

Consumers are more likely to purchase
a product or service IF it provides
higher utility than another product or
service
Types of Utility

Form Utility

When physical characteristics of a
product or service are improved


How would an offering of DVD be an
example of form utility?
Time Utility

The result of making the product or
service available when the consumer
wants it.

Examples?
Types of Utility continued

Place Utility

Ensures that the product or service is
available where the consumer wants it

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Example?
Possession Utility

Results from making the product or
service available at an affordable price.
The customer must be able to obtain the
product/service affordably through
convenient methods of payment
 Example?
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Review
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Macroeconomics?
Microeconomics?
Profit motive?
The 4 types of economic utility?